Profits jump at Fayrewood
Preps own-brand launch in France and Spain
Fayrewood, the pan-European distie, proclaimed record results for 2004, with group sales advancing 17 per cent to £507m (2003: £434m) and profits before tax jumping 27 per cent to £16.3m (2003: £12.8m).
The revenue increase for the 12 months ended 31 December 2004 represents an even bigger leap in trading volumes and market share, according to the company, which notes "continuing general product price deflation for the ranges we distribute".
Fayrewood has two business arms: Computerlinks, a wholesaler of IT security products, which is quoted separately on the Frankfurt Stock Exchange, and which has offices in several European countries; and Niche Distribution, a collection of IT wholesalers in France, the UK and Spain.
The company expects to match analyst forecasts of seven per cent growth for the European IT market this year, and to do slightly better in the security market "where ComputerLinks is the European market leader". Also, it expects to win more market share this year, and it remains on the prowl for acquisition opportunities.
Last year Fayrewood introduced into Spain its own budget range of consumer electronics, manufactured in the Far East, called Redbell. The company claims strong sales in Q4 last year and will now promote the brand, through a wholly-owned Irish subsidiary, into France and the UK, too. ®