- Trading in all of Colefax's major markets had continued to improve since the the firm announced its final results in July.

Like-for-like sales for the four months to the the of August in its core fabric division are up by 10% in the US, 20% in the UK and 13% in Europe.

But the company says that as it enters its important autumn selling season it remains cautious about the trading outlook, especially in the UK where the general economy is likely to be affected by tax increases and government spending cuts.

In the US, which is its most important market, sales are showing a slow but steady improvement following exceptionally weak trading last year.

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