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Colefax profits hit by hedging loss

By BFN News | 09:24 AM | Tuesday 25 July, 2017


Pre-tax profits at Colefax fell to £2.94m in the year to the end of April - down from £5.02m last time. The international designer and distributor of furnishing fabrics and wallpapers and owner of a leading interior decorating business said its profits were hit mainly by a hedging loss of £2.0m following the decline in sterling. Sales rose by 4.7% to £80.48m and the group said results were in line with market expectations and while underlying trading conditions in core US market were difficult, the second half showed an improvement over H1. Highlights: - Earnings per share of 18.6p (2016: 32.2p) - Net cash at year end of £6.7m (2016: £10.1m) - Proposed increased final dividend of 2.50p per share (2016: 2.40p), taking total for the year to 4.80p (2016: 4.60p) Chief executive David Green said: "Underlying trading was difficult in our core US market but improved in the second half, with economic confidence strengthening after the US election result. "While the weakness of sterling is extremely positive for our business, the decision to hedge our US dollar exposure at our budgeted rate weighed on results this year and will do so to a more limited extent in the new financial year. "We successfully completed a large capital investment programme, opening two new showrooms in Boston and Atlanta, important US territories, as well as relocating our flagship Mayfair showroom to Belgravia. "Looking ahead, we are cautiously optimistic about the Group's prospects for the year and will continue to invest with confidence in our portfolio of brands." At 9:24am: (LON:CFX) Colefax Group PLC share price was -2.5p at 482.5p Story provided by StockMarketWire.com

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