International designer and distributor of luxury furnishing fabrics and wallpapers, Colefax Group, has reported ‘flat’ profit and revenue for its year ended 30 April 2016 in comparison to 2015.
The company’s preliminary results showed sales at £76.88m, from £76.80m in 2015, with a slight fall in pre-tax profit of £5.02m from £5.03m in 2015. Earnings per share remained static at 32.2p.
Despite flat sales, cash increased by £3.2 million to £10.1 million after dividend payments of £0.48 million and share buybacks of £0.32 million. Revenue from Kingcome Sofas, which accounts for 3% of group turnover, increased by 7% to £2.62 million.
The group recognizes the impact of uncertainty over Brexit and the forthcoming US election. In a statement, David Green, Chairman of Colefax, said: “Sales, broadly unchanged at £76.88m and pre-tax profit of £5.02m, reflect a year which became progressively more challenging in all of our major markets. Different factors have affected different markets notably the forthcoming election in the US, higher stamp duty in the UK and weak consumer confidence in Europe.
“Nonetheless, cash generation remained strong and the Decorating Division delivered an improved performance, which largely offset the profit decline in the Fabric Division.
“Since the year-end, the Referendum vote has created a great deal of uncertainty in both the UK and Europe. At this stage, it is too early to judge the extent to which our business will be affected. In our major market, the US, we are experiencing more difficult trading conditions which we attribute to concern about the November Presidential election. Despite the ongoing uncertainty we will continue to invest in our business with confidence and have a significant capital expenditure programme planned, with new US showrooms and a new Decorating Division showroom in the UK.”