- Pre-tax profits at Colefax - an international designer and distributor of luxury furnishing fabrics and wallpapers - tumbled to £3.15m for the year to the end of April from £6.52m in 2011.

Sales fell to £70.4m from £77.72m and earnings per share dropped to 15.8p from 33.0p.

But the final dividend is maintained at 2.00p per share taking total dividend for the year to 3.85p (2011: 3.85p).

Chairman David Green said: "The principal reason for the decline in our pre-tax profits was a very weak performance from the decorating division which made a loss of £87,000 compared to an exceptional profit of £2.01m last year.

"Sales in the product division were flat reflecting difficult trading conditions in all of our major markets.

"The current economic conditions prevailing in our most important markets make it difficult to be optimistic about short term growth prospects.

"The group has a strong balance sheet and is well placed to deal with adverse market conditions.

"Until we are confident of an improvement we will continue to run the business prudently focussing on cash flow and tight control of working capital."

At 8:49am: [LON:CFX] Colefax Group share price was -5p at 235p

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