Sir Alan Sugar, the chairman and chief executive of Amstrad, does not like surprises, according to his TV adverts for National Savings. But he must have enjoyed presenting a nice surprise for Amstrad shareholders last month when he said the company would beat analysts' profit forecasts for the year.
The electronic consumer goods group will report full-year results on Wednesday and analysts expect pre-tax profits to top 20m. Amstrad is doing particularly well supplying Sky+ digital video recorders to British Sky Broadcasting. It is also enjoying rapid growth in its business supplying Sky Italia.
Pace Micro, an arch-rival to Amstrad in the set-top box market, is struggling and analysts believe that Amstrad is the main beneficiary.
Sugar's company is trading on a p/e ratio of 11.68, compared with a market average of 14.29. Shares in the company have risen strongly from 150p at the end of December to 203p at close on Friday. But we think they still have some way to go.
James Quimm (telegraph) is obviously of the old school which did not like sugar when he thumbed his nose at them all those years ago.40 odd million and he'd give it back.I think sir allan has a spectacular idea coming up for that which will make more money, as he has proved he can do so far.Buy
James Quinn (telegraph) is obviously of the old school which did not like sugar when he thumbed his nose at them all those years ago.40 odd million and he'd give it back.I think sir allan has a spectacular idea coming up for that which will make more money, as he has proved he can do so far.Buy