Colefax Group

Colefax Group

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Colefax Group RNS, News and Media


14 Sep 2017
Colefax Group PLC - Result of AGM & GMfrom Interactive Investor
14 Sep 2017
Colefax Group PLC - AGM Statementfrom Interactive Investor
21 Aug 2017
Colefax Group PLC - Notice of EGM and Posting of Annual Reportfrom Interactive Investor
25 Jul 2017
Colefax Group PLC - Final Resultsfrom Interactive Investor

Colefax Group Charted

Colefax Group Discussion on Interactive Investor

AGM Report by The buzz

  Thu, 15 Sep 2016 17:43:00 GMT
Well excellent biscuits and coffee served at AGM - to the THREE shareholders present.

After the formal AGM there was quite a bit of discussion on various issues. The key topic was why was CFX so pessimistic about the future? The answer was that there is much uncertainty in the USA about the outcome of the election and a similar position in the UK with BREXIT. In other words they are treading very carefully at the moment so they do not get caught out if their markets catch a cold. So whilst they are servicing their brands with new ranges and sales support to keep the brands current, they are not striving in a potentially futile attempt to have a huge leap in sales as they want to conserve the cash.

So it boils down to more of the same in the future - yet more share purchases from their huge cash pile from an ever diminishing pool of available shares.

The Buzz
By The buzz

Re: RNS - Share Purchase by The buzz

  Mon, 04 Jul 2016 10:07:00 GMT
Got quote of 455p to buy (I thought that 455p was the 'sell' price) - so could not help myself from buying 1k shares.

Agreed that the housing market in London might be adversely affected by BrExit, but as I recollect that the US profit goes up by £50k for each 1c fall in the value of the £, I think that is the dominant factor.

The Buzz

ps Did you buy any DVO - they went whizzing up today! (and HUM also went up with the increase in the price of gold),
By The buzz

Re: RNS - Share Purchase by The buzz

  Sun, 03 Jul 2016 10:15:00 GMT

I had reduced my holding at higher prices for capital gains tax purposes, but am now thinking about topping up again.

The likes of my AZN holdings have benefited from BrExit because the £'s value has radically fallen against the US$. CFX should also benefit as 59% of the fabric division's turnover (88% of CFX's turnover) is in the USA.

I am wary of entering the market at the moment as the FTSE could fall heavily and drag everything else down with it. In terms of my portfolio post BeExit, my portfolio has noticeably increased as I have avoided banks and have defensive shares in UK listed companies that have a large exposure to overseas markets. eg Recent significant additional purchases in DVO (I have held shares in this company for many years). Also a speculative holding in a gold miner (HUM) that has just finalised funding for a gold mine that will pay for itself in just over a year (I am hoping to triple my money in a year if the gold price holds up).

Coming back to CFX - its fits one of my my investment objectives by being a low risk investment as it is a cash rich company, has an established market position, will benefit by the lower £/$ exchange rate and pays a dividend higher than my cash savings account does. What shares are you chasing now?

The Buzz
By The buzz

Re: RNS - Share Purchase by valuemanbuyer

  Sun, 03 Jul 2016 08:13:00 GMT
The Buzz
I'm looking to buy a few if you're interested in selling any ?
You once mentioned on here you had too many .
By valuemanbuyer

Re: RNS - Share Purchase by The buzz

  Thu, 19 May 2016 07:50:00 GMT
Yes it is a bit surprising that so many shares could have been bought in one go - with no subsequent RNS saying that a major shareholder has sold shares. I bet that CFX has an account with its house share broker to gather lots of shares for them and sell in one big dollop? In previous years there has been usually more than one purchase at roughly the same time - so will there be another one?

I forgot to ring CFX. However the RNS prompted me to check on share holdings. They have corrected their web site to show the correct total for the number of shares held by directors to 3,730,233 (36.4%) (it originally stated 4,261,233).

With this correction I now make the total held by directors and large shareholders as 84.3%.

The strong £ v US$ must be making a useful contribution to profits, so I suspect that might be part of the reason for the large share buy-back. Buried on an old computer of mine is a plot of the number of shares v time. Agreed that I have been a long term holder of CFX, and a few years back CFX shares were relatively cheap compared to now, but I am sure that it was of the order of 15m shares a few years back, so down to 10m shares and still going down!

The Buzz
By The buzz

Re: RNS - Share Purchase by Gus1065

  Fri, 13 May 2016 19:53:00 GMT
Agree with your last comment. Not sure if you've tried to buy any recently, but they are like hens teeth to find. Surprised a 5% buy didn't have more of an impact on the share price unless they were picked up in a placement by an institution looking to exit.
By Gus1065

RNS - Share Purchase by The buzz

  Fri, 13 May 2016 19:26:00 GMT
Wow that was a huge purchase of shares announced today! I am surprised that they could find 5% of the shares available to buy. Perhaps they got wind of the shares being available and took the opportunity to use up some of the spare cash that always seems to be sloshing around at CFX?

This share purchase follows the theme for CFX over many years. As I keep droning on about it I the past I am really repeating myself in saying that there is an ever dwindling number of shares left in circulation. Groan - I have just looked at the web site and the number of shares held by the directors does not add up to the total shown - I will have to give them a ring on Monday! In theory D Green now holds more than 30% of the company now and no doubt will have to declare that. If I take the total number of directors' shares as the quoted 4,261,233 then with the declared institution shares gives an overall total of 9,16,946 or 89.4% of the shares - leaving very few left now on the open market.

The Buzz
By The buzz

Analysis visual report on Colefax Group by mcescher

  Mon, 28 Mar 2016 12:07:00 GMT
I have been using this website for their discounted cash flow. They value CFX at $5 - LINK
By mcescher

AGM Report by The buzz

  Thu, 17 Sep 2015 22:14:00 GMT
This was the usual cosy meeting with lots of banter and informal discussion as well. However, the biscuits were not as good as last year though!

Basically steady as she goes. I saw the AGM statement and initially thought that it was nothing special, but then thought about it: and decided that it was not really important since it only deals with the start of the year, whereas the second part of the year is the important part. So I was not surprised that the share price fell, but it has not fallen enough (yet) to entice me to top up.

CFX an upmarket fabric and wallpaper company and they have decided that adding too many brands would be like trying to juggle with too many balls. The decorating division sometimes has large jobs that can last 3 years - and completion depends on when the builders hand over the premises - so they have difficulty in giving a smoothed profit as a job is not finished until it meets the customer's satisfaction. This 'lumpiness' in accruing profits can be mis-interpreted by the press as giving good/ bad years, whereas one needs to average out the profits over many years.

There was a debate about higher rate tax on dividends and consequently for larger shareholders they prefer share buy backs. A problem is that as CFX has been mopping up shares for a long time now, they no longer have access to many shares on the open market, plus there was a reluctance last time from major share holders to sell any of their shares. This again underscores the share price - if lots of shares get put on the market then CFX will be keen to mop them up as they are highly cash generative. Although the dividend might look low, the overall equation needs to include the share price and in turn this is affected by share buy-backs.

The exchange rate of $ to £ is always a concern - but they do use some hedging to protect themselves. I think that WGB are really keen to buy CFX, but suspect that the current share price makes CFX a bit pricey to deliver a knock out blow that would entice existing share holders to sell out.

The Buzz
By The buzz

NEW ARTICLE: Colefax: Waiting on Europe by II Editor

  Wed, 12 Aug 2015 11:35:00 GMT
"High end wallpaper and fabric designer Colefax continues to recover along with two of its three main geographical markets.

Colefax’s stable performance belies a good year for its main business, the fabric division, and losses at its ..."

By II Editor

Final Results by The buzz

  Tue, 28 Jul 2015 15:50:00 GMT
Yes the results are quite good, but what really stands out this time is the Chairman's optimism - normally his statements are very cautious.

The USA is doing well, with the new Washington showroom starting up partly through the year. A new showroom for Boston - that makes sense as the current showroom is quite a way from the centre of Boston. I was quite surprised at the optimistic tone for Europe as that has been struggling with weak economies - so that sounds promising.

The share price jumped 32.5p today - hardly surprising - on top of what has been a good run to date. There is an awful lot of cash (£6.86m) with very strong cash flow. It must be noticeably higher as 3 months have elapsed from the year end. In the past the company has used excess cash to buy back shares - and it has always surprised me as to where they find these shares as there is a diminishing pool of shares not held by large stakeholders. On that basis I suspect that there will be some further share purchases that will support the share price. Quite a few shares were bought after the interim results were released, so I am wondering if some shares were bought today?? Plus I think that it is only a matter of time before WGB bids for CFX, so if there were to be any share weakness, it would increase the likelihood of a bid.

The Buzz
By The buzz

Re: Spread by The buzz

  Thu, 29 Jan 2015 12:43:00 GMT
356p to sell 1k and 370p to buy 1k. Earlier trades suggested 355p to buy and either 355p or 359p to sell. It would help trades if the spread was a bit tighter.

The Buzz
By The buzz

Spread by The buzz

  Wed, 28 Jan 2015 11:11:00 GMT
Results were OKish. The £ has fallen quite a bit since October, so the profit should be higher now. The spread was 350-370p yesterday. The real spread was 350p to sell and 365p to buy 1k shares. Now we have another RNS - 90k more shares bought for cancelation - and bought at 375p a share! Current quote o sell is now 35p and 370p to buy. Sounds like there is not all that much stock about. I suspect that there will be more share buy backs over the course of the year.

Thought for the day. At the start of August 2006 there were 17.1m shares. Now there are 10.8m shares. That is roughly 0.7m shares bought back each year. Basically the EPS is much higher than the dividend and much of the profit accumulates into cash that ends up buying back shares. It's really a one way bet - if the shares price falls then the company buys back shares. Now over 84% is not in public hands - ie about 1.7m shares. So these will be all be gone in about a couple of years' time at the current purchase rate. Unless there is another tender offer to buy back shares - and that would be at a good price.

The Buzz
By The buzz

New Tender Offer Coming Up? by The buzz

  Wed, 21 Jan 2015 18:54:00 GMT
Last year on 27.1.2014 the half year results came out with a 400p a share tender offer.
The trading for the company should have been good over the last year with the US economy doing much better, plus the lower value of the £ boosting the profits by about (from memory) £85k for each 1c fall in the value of the £. last time about 9% of he shares were bought back - over recent years they have made some serious inroads into the number of shares - it cannot be long before there will be a rapidly diminishing number of shares left.

The Buzz
By The buzz

NEW ARTICLE: Share Sleuth's September Watchlist by II Editor

  Tue, 30 Sep 2014 14:15:00 GMT
"Each month Richard Beddard trawls through annual corporate results for his Watchlist and the Share Sleuth portfolio of companies that satisfy key valuation metrics such as earnings yield and return on capital - and profiles the most interesting ..."

By II Editor