Fayrewood, the London-listed computer services group headed by Mr Pierce Casey, has reported a doubling of pre-tax profits in the eight months to the end of December despite difficult trading conditions.

The group reported profits before tax and goodwill of £6.5 million sterling (€9.2 million) in the period, up from £3 million a year earlier.

Turnover increased by 37 per cent to £258 million while adjusted earnings per share rose to 5.27 pence per share from 0.83 pence.

However, Fayrewood took an exceptional non-cash charge of £15.1 million.

This related to the decision by its 51 per cent-owned German subsidiary, ComputerLinks, to accelerate the amortisation of goodwill that arose on its acquisitions due to the continued weakness of the information technology industry. The company said that, despite a challenging market environment, current trading was satisfactory although it did not expect any improvement in the European information technology market this year.

"Nevertheless, the board believes the group's businesses are well positioned in their respective market segments and, in the absence of any further deterioration in market conditions, the board anticipates some further growth in group profitability this year."

Group borrowings in the eight-month period were reduced by £15.2 million to £9.9 million.

The company reported for an eight-month period because it is in the course of changing its year-end from April to December.

Fayrewood also announced the appointment of Mr Dick Lynch as company secretary and chief financial officer of the niche distribution division.