Furnishing fabrics and wallpaper group, Colefax, has reported that its two major markets, the US and the UK, has been ahead of expectations reflecting strong demand for home-related spending.

In addition, its Decorating Division is forecast to deliver an ‘exceptional performance’ this year due to the timing of completion of a major UK project.

Meanwhile, its Fabric Division profitability is ‘highly operationally geared’ and as a result of higher than expected sales the Board now expects the Group’s profits before tax for the year ended 30 April 2022 to be ahead of market expectations.

“Like many businesses we are experiencing significant inflationary pressures so although demand is currently strong this adds a note of caution to prospects for the year ahead,” the group said.