Colefax Group PLC on Wednesday reported it doubled its annual profit in a year characterised by ‘favourable’ market conditions, but cautioned on future growth.

In the year ended April 30, the fabrics and wallpaper designer reported a pretax profit of £10.8 million. This was double the £5.4 million achieved the previous year.

Revenue surged to £101.8 million from £77.9 million year-on-year, with its Fabric division up 22% and its Decorating division more than doubling its sales.

‘The group’s performance over the last year has been exceptional and reflects extremely favourable market conditions in the US and the UK,’ said Chair David Green.

‘One of the consequences of the pandemic was a surge in housing transactions and home-related spending and this has been the main driver of our business over the last financial year,’ he continued.

As a result of its strong performance, the company proposed a final dividend of 2.7 pence per share, taking the total for the year to 5.2p. In the previous financial year, Colefax did not offer a payout.

Looking forward, Colefax cautioned on high levels of cost inflation, particularly from its fabric suppliers, as well as a slow in housing market activity.

As a result, the firm said it was ‘unrealistic’ to expect continued sales growth in its current financial year, especially against such a strong prior year comparator.

Shares in Colefax were up 4.7% at 822.00p on Wednesday in London.

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