Fayrewood, the UK-listed networking distributor, issued a profit warning today - it now expects operating profit before goodwill in H1 to be 45 per cent lower than same time last year.

Its German subsidiary, Computerlinks AG (51 per cent owned by Fayrewood and listed on the Neuer Markt), which trades in the UK as Unipalm, issued revised sales and profit forecasts today for the year to Dec 31, 2001.

This is not so much of a warning, while sales are now expected to be E159m, well up on last year's E111m t/o. Profits at the EBITDA level are holding steady - it forecasts earnings of E11m (2000: E10,8m).

Sales at Fayrewood's UK and French so-called "niche" distribution outfits (storage disties Interface Solutions International and Banque Magnetique) are 20 per cent up on last year. In common with Pan-UK distie Northamber, Fayrewood notes the withdrawal of manufacturer volume rebates - "an essential element for the good performance of the division". ®