Distributor Fayrewood has singled out UK arm Interface Solutions for praise in its preliminary 2006 results statement.
The company, which now operates only in the UK and France after selling its Spanish arm UMD in October, saw turnover for the 12 months to December tumble six per cent to £458m. Pre-tax profits fell 27 per cent to £9.26m.
According to Fayrewood, IBM specialist Interface experienced a “patchy start” to the year, but went on to post its best results to date under Fayrewood’s ownership as sales rose nine per cent.
Fayrewood also announced it intends to return at least £35m in cash to its shareholders later this year on the back of the sale of UMD and its stake in security distributor Computerlinks.
Fayrewood chairman David Kleeman, said: “The sale of UMD for €48.5m cash
on completion and the removal of UMD’s bank debt has materially strengthened the
group’s balance sheet. This has been further strengthened with the €24.7m
proceeds from the sale of our interest in ComputerLinks.
“Subject to the satisfactory conclusion of discussions with our Board and
advisors, we hope to make available not less than £35m in cash to shareholders.
An announcement confirming these details will be made in due course when
plans have been formalised.”
Fayrewood said it will be relocating its headquarters from Luton to Interface’s offices in Birmingham to save on costs.
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