This is my first board effort - have followed this stock for some time. First FWY deal back around 1997 was to buy a decent German tech business (CL)for 3M which subsequently listed and now has market cap around Euro80M. CL is profitable and cash rich/generative, recently agreed dividend which will be worth about 1M to FWY in 2004. FWY now own 51% of CL, so about 30M value against current group market cap 51M. Interims in 2003 were good and they raised 1.6M of new funds at 69p of which dirs found about 25%. Rest of the group consists of computer distribution businesses in Spain (very good) France (OK) and UK (historic lossmaking).These should contribute at least 5M pretax in 2004 on a rising trend after bullish trading update recently. High volume,low margin businesses such as computer boxshifting have been a graveyard for many in last few years, so those left seem to be benefitting. Small increase in margin has big effect on bottom line. Await 2003 finals with interest. Even after recent rise,rating still looks modest.Icing on the cake would be disposal of CL, which they have been trying to engineer for some time to release value for FWY shareholders.

Partridge,this is a good company with great prospects.A good find!!!

Will take a closer look. Thanks.

Thanks nematode - this company is at the riskier end of my portfolio.I like to sleep at night and found over many years best total returns from good mid size businesses with decent yields and cash in the bank (e.g AG Barr, PZ Cussons, Kier, Halma). FWY hardly fits the bill yet, but management has bought wisely (with one exception in the UK),it does make real profits, gearing is under control and whilst it is in volatile markets, prospects at least for next few years look good. A special dividend from sale of CL would be nice.

The trading update was excellent yesterday, they will benefit from the strenght of the Euro and are are trading at less than ten times earnings and the charts are also very positive.

Unfortunately the charts have now turned negative as has the Euro, which is disappointing for this fundamentally good company. Wait for the down trend to stop and benefit from the envitable rebound. It is still fundamentally undervalued compared to its peers.

Some of directors who bought at 69p in 2003 look to have been sellers when their money doubled. Agree that it is basically a sound and well run business, but does operate in fiercely competitive and cyclical markets. I sold on the good news, some at 145p and rest just under 130p, so no longer a holder, but would look to get back in the unlikely event they drop below 1.

Fayrewood PLC
26 August 2005


FAYREWOOD PLC
POSSIBLE OFFER

Fayrewood plc ('Fayrewood' or 'the Group') announces that it has received an
approach, which may or may not lead to an offer being made for all or part of
the Group. This approach is at a relatively early stage and there is no
certainty that it will result in a formal offer.

A further announcement will be made in due course as appropriate.

Enquiries:

Fayrewood plc
David Kleeman (Chairman) 0870 351 5802

KBC Peel Hunt Ltd
Oliver Scott 0207 418 8900



This information is provided by RNS
The company news service from the London Stock Exchange

Any offer would have to be at least 150p to have a chance of success but, as the announcement says, it is at a very early stage.

K******

Unusual trades today - large sells on no movement in price, then several tick ups on regular small buys. Bought back in at 81p some time ago and for the first time since feeling really comfortable with it! Always DYOR.