Fayrewood, the computer services group founded by Irishman Mr Pierce Casey and listed in London, has made a profit of more than £17 million sterling (€28.3 million) on a subsidiary it bought only last year by selling it to another of its subsidiaries.

The acquisition by German subsidiary ComputerLinks of Fayrewood's 100 per cent holding in French company Alpha Media for £22 million sterling in cash and stock was one of two deals worth £52 million sterling completed by the company.

Fayrewood bought Alpha Media in June 1999 for only £4.7 million. The acquisitions are intended to strengthen the Fayrewood Group's pan-European information technology platform. The group also announced the establishment of ELink Capital, an investment company targeting minority stakes in Internet and e-commerce businesses.

In the larger transaction, ComputerLinks acquired British company Awarenet, which trades under the name Unipalm, for a maximum consideration of £30 million sterling.

Unipalm, which is based in Newmarket and employs 72 people, made pre-tax profit of £1.72 million last year. In the first quarter of this year, sales rose by 118 per cent to £7.4 million on the year-ago period. ComputerLinks now comprises operations in Germany, Switzerland, France and Britain. Fayrewood's shareholding in the company will fall to 50.97 per cent from 53 per cent as a result of the transactions.

Fayrewood chairman Mr Casey holds a 14.5 per cent stake in Fayrewood and 8 per cent stake in ComputerLinks. Mr Casey said the acquisition of Unipalm provided the group with a truly pan-European information technology platform.

"Going forward Fayrewood is in a strong position to capitalise on its close involvement in Internet and e-commerce companies across Europe through ELink Capital," he added.