RNS Number:3556U
Colefax Group PLC
19 January 2004


                                 COLEFAX GROUP
                                INTERIM RESULTS
                     FOR THE SIX MONTHS TO 31 OCTOBER 2003

   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 7% to #1.76m (2002: #1.65m)

   *Earnings per share increased by 20% to 6.15p (2002: 5.11p)

   *Sales of #31.25m, down by 3% (2002: #32.19m)

   *Maintained interim dividend of 1.34p per share (2002: 1.34p)

David Green, chairman and chief executive, commented,
"We believe that the Group has performed reasonably well given current market
conditions, and we are benefiting from prior year cost savings, particularly in
France. Although we are seeing signs of growth in our major market, the US, the
rapid decline of the US dollar against Sterling and the Euro, and its continuing
weakness, will continue to impact the Group's performance."

Enquiries:
Colefax Group plc   David Green, Chairman                     Tel: 020 7448 1000                                        
Biddicks            Katie Tzouliadis / Kathryn van der Kroft  Tel: 020 7448 1000       


CHAIRMAN'S STATEMENT

Financial results

The Group's pre-tax profit for the six months to 31st October 2003 increased by
7% to #1.76 million (2002: #1.65 million) on sales down 3% at #31.25 million
(2002: #32.19 million). Earnings per share increased by 20% to 6.15p (2002:
5.11p) with 11% of this increase due to the effect of share buybacks in the
current and prior periods.

The Board has decided to recommend a flat interim dividend of 1.34p per share
(2002: 1.34p). This reflects uncertainties relating to the current weakness of
the US dollar. The interim dividend will be paid on 8th April 2004 to
shareholders on the register at the close of business on 5th March 2004.

Group net borrowings increased by #0.4 million to #5.4 million, which represents
gearing of 40% to net tangible assets. The Group's operating cash inflow during
the period was #1.9 million compared to #4.4 million in the prior year. This is
mainly due to differences in the timing of creditor payments and deposit
receipts. During the period, the Group purchased and cancelled 382,000 shares at
a cost of #278,000 and representing 1.9% of the Group's issued share capital.

Product Division

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

Sales in the US, which represent 56% of the fabric division's turnover, were 1%
down on a like-for-like basis. Since the end of October 2003, there is some
evidence of an increase in activity in this market and we are cautiously
optimistic about sales prospects for the remainder of the year

Sales in the UK, which represent 20% of the fabric division's turnover, were
down 2% on a like-for-like basis. The high end housing market in the UK is still
difficult and coupled with a lack of contract activity, we do not expect any
significant short-term improvement in this market.

Sales in Continental Europe, which represent 21% of the fabric division's sales
decreased by 7% on a like-for-like basis. This area has seen the largest decline
in all our markets during the first six months and although market conditions
have improved slightly, we expect trading conditions to remain generally
difficult.

Sales in the rest of the world, which represent 3% of the fabric division's
sales, were flat during the period. We continue to look for growth opportunities
in the Far East and the Middle East, although this market will remain relatively
insignificant in overall Group terms.

Furniture - Kingcome Sofas

Sales in the first six months of the year were up 34% mainly due to the
introduction of new models and Kingcome's own fabric range. Both retail and
trade sales reported good increases compared to a difficult trading period last
year. The improved sales, together with the cost savings made last year, mean
that this division will return to profitability in the current year.

Accessories - Manuel Canovas

This division of the Group, based in Paris, has been adversely affected by the
strength of the Euro. This has reduced gross profit margins in certain export
markets, particularly the US. We have reduced costs to mitigate the currency
situation and continue to explore options for improving margins.

Interior Decorating Division

Interior decorating sales for the first six months decreased by 11% to #3.4
million. Antique sales have continued to suffer from a lack of overseas
visitors, especially from the US. The weak dollar will make it increasingly
difficult for us to obtain work in the US, which is traditionally a strong
market for this division. As a result, we expect trading to remain challenging
over the next twelve months.

Prospects

We believe that the Group has performed reasonably well given current market
conditions, and we are benefiting from prior year cost savings, particularly in
France. Although we are seeing signs of growth in our major market, the US, the
rapid decline of the US dollar against Sterling and the Euro, and its continuing
weakness, will continue to impact the Group's performance.

David Green
Chairman


GROUP PROFIT AND LOSS ACCOUNT
For the six months ended 31 October 2003

                                    Six months to       Six months to
                                           31 Oct              31 Oct
                                             2003                2002
                                            #'000               #'000

Turnover                                   31,254              32,188

Operating profit                            1,878               1,772
Interest payable                             (116)               (119)
                                     -------------       -------------

Profit before taxation                      1,762               1,653
Taxation                                     (599)               (579)
                                     -------------       -------------

Profit after taxation                       1,163               1,074
Dividends                                    (248)               (211)
                                     -------------       -------------

Retained profit for the year                  915                 863
                                     -------------       -------------

Earnings per share                           6.15p               5.11p
Diluted earnings per share                   6.05p               5.02p
Dividend per share                           1.34p               1.34p
GROUP BALANCE SHEET
At 31 October 2003
                                 At 31 Oct    At 31 Oct    At 30 April
                                      2003         2002           2003
                                     #'000        #'000          #'000

Fixed assets                         7,450        8,222          7,755

Current assets:
Stocks and contracts in             12,882       13,387         13,039
progress
Debtors                              8,872        8,165          9,211
Cash at bank and in hand             1,989        1,677          1,639
                                  ---------    ---------      ---------

                                    23,743       23,229         23,889
                                  ---------    ---------      ---------

Creditors: amounts falling due
within                              16,234       17,637         16,683
one year

Net current assets                   7,509        5,592          7,206
                                  ---------    ---------      ---------

Total assets less current           14,959       13,814         14,961
liabilities                       ---------    ---------      ---------

Creditors: amounts falling due
after one                            1,250          482          1,500
year
Provision for liabilities and          130           54            130
charges                           ---------    ---------      ---------

                                    13,579       13,278         13,331
                                  ---------    ---------      ---------

Capital and reserves:
Called up share capital              1,971        2,076          2,009
Share premium account               11,087       11,055         11,087
Capital redemption reserve             895          777            857
Profit and loss account               (374)        (630)          (622)
                                  ---------    ---------      ---------

                                    13,579       13,278         13,331
                                  ---------    ---------      ---------
GROUP CASH FLOW STATEMENT
For the six months ended 31 October 2003
                                        Six months to    Six months to
                                               31 Oct           31 Oct
                                                 2003             2002
                                                #'000            #'000

Net cash inflow from operating                  1,851            4,438
activities                                 ===========      ===========

Returns on investments and servicing
of finance
Interest received                                   3               10
Interest paid                                    (118)            (142)
                                           -----------      -----------
                                                 (115)            (132)

Taxation
UK corporation tax paid                          (211)            (178)
Overseas tax paid                                (123)            (427)
                                           -----------      -----------
                                                 (334)            (605)

Capital expenditure and financial
investment
Payments to acquire tangible fixed             (1,057)          (1,247)
assets
Receipts from sales of tangible fixed              20               54
assets                                     -----------      -----------
                                               (1,037)          (1,193)

Equity dividends paid                            (392)            (406)
                                           -----------      -----------

Cash (outflow)/inflow before financing            (27)           2,102
                                           -----------      -----------

Financing
Purchase of own shares                           (278)          (1,870)
Repayment of long-term loan                    (1,164)            (487)
                                           -----------      -----------
Net cash outflow from financing                (1,442)          (2,357)
                                           -----------      -----------

(Decrease) in cash in the period               (1,469)            (255)
                                           -----------      -----------

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 31 October 2003

                                        Six months to    Six months to
                                               31 Oct           31 Oct
                                                 2003             2002
                                                 #000             #000

Profit for the period                           1,163            1,074

Currency translation differences on
foreign                                          (128)             (65)
currency
net investments

Currency translation differences on
foreign                                          (442)            (492)
currency loans

Deferred tax on long-term loan foreign
currency movements                                181              202
                                           ===========       ==========

Total recognised gains and losses
relating to                                       774              719
the period                                 ===========       ==========


NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.Cash flow statement
                                                      Six months    Six months
                                                       to 31 Oct     to 31 Oct
                                                            2003          2002
                                                           #'000         #'000
        Reconciliation of operating profit to net
        cash inflow from operating activities

        Operating profit before interest and tax           1,878         1,772
        Depreciation charges                               1,153         1,212
        (Profit) on sale of tangible fixed assets            (12)          (35)
        (Increase) in stocks                                 (72)         (147)
        Decrease in debtors                                  196           340
        (Decrease)/increase in creditors                  (1,292)        1,296
                                                      -----------   -----------

        Net cash inflow from operating activities          1,851         4,438
                                                      -----------   -----------
     
2.   The interim dividend is payable on 8th April 2004 to qualifying 
     shareholders on the register at the close of business on 5th March 2004.

3.   Earnings per share have been calculated on the basis of earning of
     #1,163,400 (2002: #1,074,000) and on 18,929,635 (2002: 21,018,289) 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 #1,163,400
     (2002: #1,074,000) and on 19,220,712 (2002: 21,396,762) ordinary shares
     being the weighted average number of ordinary shares in the period adjusted
     to assume conversion of all dilutive potential ordinary shares 291,077
     (2002: 378,473).

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 4JE.



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            The company news service from the London Stock Exchange

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