Colefax Grp. Regulatory News (CFX)

Colefax Group plc

CFX

6 May 2010

COLEFAX GROUP PLC

("the Group")

Trading Update

Since we announced our interim results in January, trading conditions have been better than we expected, especially in the UK market.

In the fabric division, UK sales for the three months to 30 April 2010 were up by 13% compared to the same period in the previous year. The stronger than expected UK market has also benefitted trading in our decorating and furniture divisions. Sales in the US, which is our largest market accounting for approximately 46% of fabric division sales, were up by 1% in the three months to April 2010 and there are some signs that this market is finally starting to recover.

As a result of the better than expected trading in the UK and the US, Group operating profits before exceptional items for the year to 30 April 2010 will be in the region of £3.9 million (2009 £2.7 million, 2008 £6.1 million). The Group has made a decision to close its Manuel Canovas beachwear activity in France and this will result in an exceptional cost of approximately £800,000 for the year ended 30 April 2010.

Although we have experienced good growth in the UK over the last three months, we are cautious about trading prospects after the general election and believe that the year ahead will remain challenging in most of our major markets.

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