Interim Results

Colefax Group PLC
21 January 2003

                                 COLEFAX GROUP

                                INTERIM RESULTS

                     FOR THE SIX MONTHS TO 31 OCTOBER 2002

   Colefax Group designs and distributes furnishing fabrics and wallpaper and

                 owns a leading interior decorating subsidiary.

                     Portfolio of five major fabric brands:

                     'Colefax and Fowler', 'Cowtan & Tout',

                'Jane Churchill', 'Manuel Canovas' and 'Larsen'

                                  Key points


  • Pre-tax profit increased by 0.5% to £1.65m (2001: £1.64m)

  • Earnings per share increased by 10.4% to 5.11p (2001: 4.63p)

  • Sales down by 1.4% to £32.19m (2001: £32.65m)

  • Interim dividend of 1.34p per share (2001: 1.34p)

 David Green, chairman and chief executive, commented,

'Since the half year end, the downward trend in sales has continued in all our
major markets and it seems unrealistic to expect any significant improvements in
the early part of 2003. In addition, the Group will be adversely affected by the
strength of sterling against the dollar. We continue to focus our efforts on
reducing our cost base but trading conditions remain challenging and our results
will reflect these conditions.'

 Enquiries:

Colefax Group plc        David Green, Chairman                Tel: [phone]

Biddicks                 Katie Tzouliadis / Kathryn Burn      Tel: [phone]


                              CHAIRMAN'S STATEMENT

Financial Results

The Group's pre-tax profit for the six months to 31st October 2002 increased by
0.5% to £1.65 million (2001: £1.64 million) on sales down 1.4% at £32.19 million
(2001: £32.65 million). Earnings per share increased by 10.4% to 5.11p (2001:
4.63p) mainly due to the effect of share buybacks during the period.

The Board has decided to recommend a flat interim dividend of 1.34p per share
(2001: 1.34p). This reflects the current difficult trading conditions and
uncertain outlook. The interim dividend will be paid on 10th April 2003 to
shareholders on the register at the close of business on 7th March 2003.

Group net borrowings decreased by £0.2 million to £4.5 million which represents
gearing of 34% to net tangible assets. During the period the Group purchased and
cancelled 2.56 million shares at a cost of £1.87 million and representing 11% of
the Group's issued share capital. The strong operating cashflow during the
period was principally due to further reductions in working capital.

 Fabric Division

Portfolio of Five Brands: 'Colefax and Fowler', 'Cowtan and Tout', 'Jane
Churchill', 'Manuel Canovas' and 'Larsen'

Sales in the US, which represent 57% of the fabric division's turnover, were 1%
down on a like for like basis although last years figures included a
particularly weak September. The trend is still downwards although trading
conditions vary considerably by territory.

Sales in the UK, which represent 20% of the fabric division's turnover, were
down 3% on a like for like basis. The introduction of the Larsen brand last year
has helped sales and turnover decreased by 1%. Our new autumn collections have
been well received although trading conditions remain difficult.

Sales in Continental Europe, which represent 21% of the fabric division's sales,
decreased by 4% on a like for like basis. Sales in France, our largest market,
were down by 11% and show no sign of improvement.

Sales in the rest of the world, which represent 2% of the fabric division's
sales, decreased by 11% on a like for like basis. Our largest market, Australia
is still adversely affected by the strength of Sterling.

 Furniture Division - Kingcome Sofas

Furniture sales decreased by 18% reflecting extremely tough trading conditions
in the UK, which accounts for the majority of total sales. Retail sales were
more affected than trade sales. We are in the process of reducing costs in line
with current levels of activity, as we see no sign of improvement in current
trading.

Accessories Manuel Canovas beachwear and fragrances

This division, which represents just under 3% of total Group sales grew by 37%
during the period although the majority of sales fall in the second half of the
year. The sales growth is largely due to increased sales and marketing
expenditure and we do not expect significant profits growth whilst we build up
this division from a small base.

 Interior Decorating

Interior decorating sales increased by 18% during the period reflecting the
completion of some significant contracts in the first half of the year. Antique
sales increased by 7% although the comparative period last year included a weak
September. The decorating order book is strong and this division continues to
perform well.

Prospects

Since the half year end, the downward trend in sales has continued in all our
major markets and it seems unrealistic to expect any significant improvements in
the early part of 2003. In addition, the Group will be adversely affected by the
strength of sterling against the dollar. We continue to focus our efforts on
reducing our cost base but trading conditions remain challenging and our results
will reflect these conditions.

 David Green

Chairman

January 2003

GROUP PROFIT AND LOSS ACCOUNT

For the six months ended 31 October 2002
                                                                        Six months to              Six months to
                                                                               31 Oct                     31 Oct
                                                                                 2002                       2001
                                                                                £'000                      £'000

Turnover                                                                       32,188                     32,654

Operating profit                                                                1,772                      1,858
Interest payable                                                                (119)                      (213)

Profit before taxation                                                          1,653                      1,645
Taxation                                                                        (579)                      (575)

Profit after taxation                                                           1,074                      1,070
Dividends                                                                       (211)                      (304)

Retained profit for the year                                                      863                        766

Earnings per share                                                              5.11p                      4.63p
Diluted earnings per share                                                      5.02p                      4.61p
Dividend per share                                                              1.34p                      1.34p


 GROUP BALANCE SHEET

At 31 October 2002
                                                                                  As restated
                                                                  At 31 Oct         At 31 Oct       At 30 April
                                                                       2002              2001              2002
                                                                      £'000             £'000             £'000

Fixed assets                                                          8,222             9,075             8,446

Current assets:
Stocks and contracts in progress                                     13,387            15,895            13,489
Debtors                                                               8,165             8,841             8,397
Cash at bank and in hand                                              1,677             1,438             1,911

                                                                     23,229            26,174            23,797

Creditors: amounts falling due within one year                       17,637            19,223            16,522

Net current assets                                                    5,592             6,951             7,275

Total assets less current liabilities                                13,814            16,026            15,721

Creditors: amounts falling due after one year                           482             1,547             1,029

Provision for liabilities and charges                                    54               509                52

                                                                     13,278            13,970            14,640

Capital and reserves:
Called up share capital                                               2,076             2,378             2,332
Share premium account                                                11,055            11,055            11,055
Capital redemption reserve                                              777               475               521
Profit and loss account                                               (630)                62               732

                                                                     13,278            13,970            14,640

 GROUP CASH FLOW STATEMENT

For the six months ended 31 October 2002
                                                                            Six months to          Six months to
                                                                                   31 Oct                 31 Oct
                                                                                     2002                   2001
                                                                                    £'000                  £'000

Net cash inflow from operating activities                                           4,438                  1,341

Returns on investments and servicing of finance
Interest received                                                                      10                     85
Interest paid                                                                       (142)                  (232)
                                                                                    (132)                  (147)

Taxation
UK corporation tax paid                                                             (178)                   (44)
Overseas tax paid                                                                   (427)                   (19)
                                                                                    (605)                   (63)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                         (1,247)                (1,420)
Receipts from sales of tangible fixed assets                                           54                     34
                                                                                  (1,193)                (1,386)

Equity dividends paid                                                               (406)                  (460)

Cash inflow/(outflow) before financing                                              2,102                  (715)

Financing
Purchase of own shares                                                            (1,870)                  (601)
Repayment of long-term loan                                                         (487)                  (519)
Net cash outflow from financing                                                   (2,357)                (1,120)

(Decrease) in cash in the period                                                    (255)                (1,835)



GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the six months ended 31 October 2002
                                                                                                      As restated
                                                                                Six months to       Six months to
                                                                                       31 Oct              31 Oct
                                                                                         2002                2001
                                                                                         £000                £000

Profit for the period                                                                   1,074               1,070

Currency translation differences on foreign currency 
net investments                                                                         (355)               (165)

Total recognised gains and losses relating to 
the period                                                                                719                 905

Prior period adjustment (FRS 19 - Deferred Tax)                                                             (345)

Total recognised gains and losses                                                                             560


 NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.     Cash flow statement
                                                                    Six months to           Six months to
                                                                      31 Oct 2002             31 Oct 2001
                                                                            £'000                   £'000
Reconciliation of operating profit to net cash inflow
from operating activities

Operating profit before interest and tax                                    1,772                   1,858
Depreciation charges                                                        1,212                   1,324
(Profit) on sale of tangible fixed assets                                    (35)                    (20)
(Increase) in stocks                                                        (147)                 (1,076)
Decrease in debtors                                                           340                      45
Increase/(decrease) in creditors                                            1,296                   (790)

Net cash inflow from operating activities                                   4,438                   1,341


 2. The interim dividend is payable on 10th April 2003 to qualifying
    shareholders on the register at the close of business on 7th March 2003.

 3. Earnings per share have been calculated on the basis of earning of £1,074,000
    (2001: £1,070,000) and on 21,018,289 (2001: 23,120,625) ordinary shares
    being the weighted average number of ordinary shares in issue during the
    period.

 4. Diluted earnings per share have been calculated on the basis of £1,074,000
    (2001: £1,070,000) and on 21,396,762 (2001: 23,200,857) ordinary shares
    being the weighted average number of ordinary shares in the period adjusted
    to assume conversion of all dilutive potential ordinary shares 378,473
    (2001: 80,232).

 5. The interim accounts are unaudited. The above financial information does not
    comprise full accounts within the meaning of Section 240 of the Companies
    Act 1985 (as amended).

 6. Copies of the interim report are being sent to shareholders and will also be
    made available on request to members of the public at the Company's
    registered office at 39 Brook Street, London W1K 2JE.


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