AGM Statement

Colefax will hold its Annual General Meeting at 11.00 a.m. this morning and David Green, Chief Executive, will make the following comment on current trading:

In the Group's core Fabric Division, sales for the 19 weeks to 12 September 2025 were up by 7.8% and up by 10.3% on a constant currency basis. Sales in the US, which is our largest market accounting for 64% of the Fabric Division total, were up by 6.8% and 11.2% on a constant currency basis. Sales in Europe were up by 7.8% and up by 5.9% on a constant currency basis. Sales in the UK were up by 11.8% but against a weak prior year comparative.

Whilst the Fabric Division sales performance is encouraging, we remain cautious about prospects due to the end of the pause in additional US import tariffs on 1 August 2025 and the additional 50% import duty applicable to Indian origin goods from 27 August. These tax changes have come into effect at the start of our important autumn trading period and will add approximately $6 million to annual costs requiring significant pricing adjustments which may adversely affect sales volumes. There is also uncertainty about the extent to which tariffs will affect the wider US economy. In addition, we are facing a significantly weaker US dollar exchange rate. Allowing for these factors and budgeted increases in operating costs we are expecting the current year performance to be in line with expectations.