Fayrewood, the London-quoted computer services group, founded by Irish man Mr Pierce Casey, has more than doubled its operating profit from £1.2 million sterling (€1.9 million) to £2.5 million sterling in the six months ended October 31st, 1999.
Pre-tax profit increased by 11 fold from £1 million to £11 million but this was mainly due to an exceptional gain of £8.6 million from the initial public offering of ComputerLinks. A better reflection of real growth is the 48 per cent increase in adjusted earnings per share from 2.7p to 4.0p. Mr Casey has a 15 per cent stake in Fayrewood whose share fell by 11p to 257.5p yesterday following the results, but after a substantial surge over the past few months. On this basis his shareholding is valued at £11 million.
ComputerLinks was floated on the Neuer market in Germany last June. Fayrewood said its interest in this company was valued at €94.8 million. Mr Casey's indirect interest in this is valued at €14 million.
Around 12 per cent of Fayrewood's shareholders (apart from Mr Casey's holding) are Irish following a placing last July at 77p per share. They are now showing a substantial paper gain. The group is to broaden its investment profile to include direct investment in e-commerce and Internet opportunities, said Mr Casey who is the executive chairman. "Our vision to develop Fayrewood as a pan-European group of scale is becoming increasingly viable as more and more well run, entrepreneurial businesses in computer services across Europe view us as an attractive business partner," he said. "They are attracted by our track record to date, our innovative acquisition structures and incentive arrangements".
An interim dividend of 0.58p per share has been declared. This is 8 per cent higher than a year earlier.
Mr Casey said the company continued expanding through the acquisition of Alpha Media in June. Following the listing of ComputerLinks which raised £20 million in new capital, Fayrewood's balance sheet has been strengthened. This is reflected in the rise in shareholders' funds from £3.3 million to £19.1 million.
