Picked up a rotting deciduous stick, approx 4-5cm thick, to look closer at the toothed white crust on it ....
and then spotted these, approx 1-2mm high. They seemed to (possibly) be emerging from below the crust

After a couple of hours in the warm and dry they looked like this
The colour's not good as I had to use flash but they were a definite pink-brown colour.
All and any clues to their identity would be very appreciated - initially I'd thought lichen but I can't find any Caliciales that seem to match.