Fayrewood Goes from Strength to Strength

Hi Robbie,

Who says they are only talking to one potential bidder ? They may have had one approach, but I would put money on our Directors talking to lots of different people about potential deals. That's what they do all the time, remember !

Bid talks can drag on for a very long time. The bidder(s) might well want to see how Q4 trading pans out, for example, now that we're into that period.

Remember that management at FWY don't need to sell - the business is performing well, and is rated very cheaply. They have been approached, and will reject any offer which does not properly value the group.

Anything below 150p is unthinkable in my view, now that we know trading is going well. These shares should be back up to that level in the Spring anyway, on the back of solid 2005 numbers. 150p would still only be a 2005 PER of 8.7 .

Would you be happy selling out at that valuation ? I wouldn't !!
But a bird in the hand ... perhaps ?

Regards, Paul.