Fantastic news out just lately from this company and its links with BSKYB should propel the shares far higher than there current price.

Seriously undervalued in my opinion.

Last results reported. Look at the 19 million CASH on the balance Sheet.
AMSTRAD PLC
INTERIM STATEMENT
SIX MONTHS ENDED 31 DECEMBER 2002


Chairman's Statement

Financial Results


I am pleased to report on the results for the six month period ended 31 December
2002.


Amstrad Business


The Amstrad business made a profit before tax of #5.5m (2001: #2.5m) on sales of
#19.1m (2001: #18.4m). Earnings per share from the Amstrad business were 4.7p
(2001: 2.6p).


Amserve Business (E-m@ilers)


Amserve's loss before tax, after initial subsidies on phones as referred to
later in this Statement, was #5.5m (2001: #1.6m) on sales of #4.2m (2001:
#1.2m).


Group


The Group as a whole reported a pre tax break even result (2001: #0.9m profit)
on sales of #23.3m (2001: #19.6m). The earnings per share were 0.5p (2001:
1.2p).


The interim dividend is to be maintained at 0.8p (2001: 0.8p) per ordinary share
to be be paid on 8 April 2003 to shareholders on the register as at 21 February
2003.


The Group balance sheet remains strong with net assets of #23.4m (2001: #28.2m)
of which #18.9m (2001: #28.8m) was cash.


Operating Review


Amstrad Business


Sales of digital decoders ("set top boxes") to BSkyB were 4% higher in volume
terms than the same period last year but lower in value terms reflecting the
continuing price pressure on this business. Our focus remains on driving down
the cost of the set top box and in September 2002 we launched a new fourth
generation box. We have orders in place for the remainder of this financial year
and for the next financial year.


Our continued focus on quality control has enabled us to release #0.7m at the
half year from provisions against potential warranty costs for past supplies of
set top boxes where warranty costs incurred have been lower than anticipated.


The Hong Kong business had a very successful first half with direct shipments of
audio products, mainly to the US market, significantly ahead of the same period
last year.

Amserve Business


As part of a deliberate and planned marketing exercise, the retail price of the
second generation e-m@iler ("the e-m@iler plus") was halved to #49.99 by most
retail outlets after Christmas in a move aimed at significantly increasing the
installed base. In addition to the 125k units of the original model sold,
approximately 85k units of the new model have now been bought and registered by
consumers since the launch in February 2002, of which 41k units have been
registered since Christmas. This makes a total installed base of 210k units.


This price reduction has been partially offset by lower manufacturing costs but
it has increased the initial subsidy per unit. In view of this the Board has
recognised a provision of #2.2m in the value of stock, representing the
shortfall against cost which will arise when the stock held at 31 December 2002
is sold. This therefore will avoid the loss that would otherwise have arisen on
the sale of these units in the second half of the year. The positive side of
this approach is that in future years the results of Amserve will reflect a
clearer view of the ongoing revenue stream from the installed base of phones.


The revenue derived from the usage of the e-m@iler continues to hold up well
with the majority of the income continuing to come from e-mail usage although in
the last six months other services such as the ability to download ringtones
have generated a more meaningful contribution. At the time of these results the
average gross revenue generated in the past 30 days from the average installed
base of approximately 201k units was #13k per day (approximate annualised rate
of #4.7m per annum).

We expect this revenue to increase both through the growth in the installed
base, allowing for any customer churn, and through the first generation model
moving at the end of March 2003 to the same revenue sharing arrangements as
apply to the current model.

We remain fully committed to the e-m@iler business and continue to develop new
software that enhances the functionality and revenue earning potential of the
phone which is periodically downloaded to the existing installed base.


Outlook


We continue to work with BSkyB to develop opportunities in the digital satellite
TV market and are pursuing promising opportunities in other geographic markets
for digital set top boxes.


In the Amserve business our focus remains on increasing the installed base of
e-m@ilers and enhancing future profitability through maximising existing revenue
sources such as e-mail and by adding new revenue sources.


Sir Alan Sugar
Chairman

13 February 2003


Amstrad plc (www.amstrad.com)
Register No 955321
Brentwood House Press Enquiries:
Brentwood Nick Hewer - 07785 318737
Essex CM14 4EF hewer@amstrad.com

G

Amstrad up 20% on promise of higher profits
By Maija Pesola FT.com, 12:20 BST Jun 5, 2003

Shares in Amstrad rose more than 20 per cent on Thursday after the UK consumer electronics company, run by Sir Alan Sugar, released a statement saying it expected profits to be "significantly ahead" of current market expectations.

The company said higher revenues from its Em@iler internet phone business as well as its other consumer electronics operations would help push up profit for the year to the end of June.

Shares in the company were up 13-3/4p at 78-1/2p in late morning trade.

The Em@iler, a combination of fixed-line telephone and e-mailing device, is Amstrad's flagship product, but has faced a great deal of scepticism since its launch in 2000.

Recently, however, there have been indications that sales could be picking up. The device was upgraded and relaunched at the beginning of this year with a significantly lower price, and in April Amstrad said it had sold more than 300,000 of the Em@ailer devices in total.

Amstrad makes money from the Em@ailer by receiving the lion's share of the internet and phone charges that customers pay to Thus, the telecommunications company responsible for connecting the units. It also charges companies for advertising on the screens of the the more advanced models of Em@ailer.

The bulk of Amstrad's revenue, however, still comes from its digital satellite decoders, which it supplies to BSkyB.

Amstrad is best known for its domination of the European personal computer market in the 1980s. Following this success it entered the telecommunications sector, launching a mass-market satellite dish on behalf of Sky TV in 1989. G

Comparision chart Amstrad/ Thus seems to show Thus are also benefiting from e mailer revenue created by Amstrad. If I am reading this chart right it appears Thus share price jumps by similar percentages as Amstrad... but a couple of weeks later. Anybody got any thoughts on this?

See previous post, was hoping for some response/ advice

MAckenzie,

Well judging by the chart you posted, you are correct, and I guess we'll all be following Thus for 2 weeks to see if we can catch the bounce up!

Can you post a 3 year chart with both on, for a longer term view?

Chart created usimg money am facility, makes interesting reading doesn't it?
Don't understand long term signifigance as e-mailer joint venture only a couple of months old. Your views would be most welcome.

Tell you what Mac thats a very good spot of detective work. The charts are almost identical. Two weeks behind you say. Right Thus goes on my watch list.
cheers.G

goldfinger
If I'm right I would expect to see THUS about +25% between now and 24th June
Interesting also to note Thus seems to head south a couple of weeks before Amstrad so may also be a good indicator of when to sell AMT

No way am I selling AMT. I see a doubling of the share price by early next year.

The sales from SKY should be massive. Stay lucky. G

Goldfinger
I wasn't suggesting sell AMT, think you are right, just pointing out it might be a good indicator. Off on holiday now, back monday week, should see something on thus by then !!

mackenzie,

Thanks for your contribution!

have a good holiday, we'll look after Thus for you!

Andy.

.

Starting to rise again and will do untill results are released in about 5 to six weeks, can anybody confirm date???????G

See posts 9, 12 and 14
Have now got +25% return on THUS, took 2 weeks longer than I expected, Thus and Amstrad charts still similar