A process for the preparation of a flexible phenolic resin which comprises co-condensing a dimethylol phenol, substituted by an alkyl group having from 1 to 20 carbon atoms, with a methylol derivative of a polyfunctional phenol in which derivative at least half of the reactive hydrogen atoms in the polyfunctional phenol are substituted by methylol groups and wherein the ratio of the methylol groups of the derivative of the polyfunctional phenol per mol of the dimethylolalkyl phenol is from 1.4:1 to 6:1, a phenolic resin prepared by said process, a coating composition containing said phenolic resin and an article coated with or comprising said phenolic resin.