Fayrewood, the European networking distie, has missed its second half targets.

In a trading statement, issued the day before its current financial year comes to an end, the company said its anticipation of a 'significantly stronger' second half, published in December, had not worked out.

Second half profits are below analyst forecasts - although well above H1, on sales slighter lower than consensus predictions. The company attributes the latter to "focus on maintaining margins" rather than the business climate.

Fayrewood says gross margins are stable across the group and overheads are reduced. The company has operating subsidiaries in France, Germany and the UK, with the first two both profitable and cash generative. In the UK, it's a different matter, with its sub facing 'particularly challenging conditions'. However trading losses are reduced, and recent management changes are expected to result in improved performance, Fayrewood says. ®