RNS Number:1252Q
Amstrad PLC
25 September 2003


                                  AMSTRAD PLC
                            PRELIMINARY ANNOUNCEMENT
                             YEAR ENDED 30 JUNE 2003



Chairman's Statement

Financial Review


The Group as a whole reported a profit before tax of #3.8m (2002: #1.8m loss) on
sales of #43.8m (2002: #40.2m). The earnings per share were 3.7p (2002: 1.8p
loss per share).


The Board of Directors recommend an increased final dividend of 2.2p (2002:
1.5p) per ordinary share to be paid on 5 December 2003 to shareholders on the
register on 3 October 2003 which together with the interim dividend of 0.8p
(2002: 0.8p) paid on 8 April 2003 makes a total distribution of 3.0p (2002:
2.3p) per ordinary share in respect of the year ended 30 June 2003.


The Group balance sheet remains strong with net assets of #24.2m (2002: #24.1m)
including #24.5m (2002: #22.6m) of cash.


Operating Review


Amstrad Business


The Amstrad business made a profit before tax of #9.9m (2002: #4.2m) on sales of
#34.4m (2002: #35.4m). The sales of digital decoders ("set top boxes") were
higher in volume terms than last year. We continue to drive down the cost of the
set top box and in September 2002 we launched our fourth generation unit. We
have orders in place for the whole of the current financial year.


As a result of our continuing focus on quality control warranty costs incurred
have been lower than anticipated and we have been able to release #0.9m, of
which #0.7m was released in the first half of the year, from provisions against
potential warranty costs relating to past sales of set top boxes.


In April 2003 we announced that we had signed two separate manufacture and
supply agreements with BSkyB, the first for Sky+ set top boxes, which takes the
Company into a new area of technology (personal video recorder -"PVR") by
incorporating a hard disk drive into a set top box. The second is for a new Sky
branded combined keyboard and remote control. Shipments of this product have
already commenced in this current financial year. These two agreements are in
addition to the ongoing supply of standard set top boxes.


Our Hong Kong business has had a very successful year with direct shipments of
audio products, mainly to the US market, significantly ahead of last year. New
audio models are currently under design and development with an emphasis on
exclusive and innovative features.


Amserve Business


Shareholders will know that the e-m@iler business model is based on us
subsidising the sales price of the units with the subsidy recouped through a
long term revenue stream derived from usage of the e-m@iler. This practice has
been successfully used for many years by most mobile phone operators. The loss
generated by the Amserve business, including this subsidy, was #6.1m (2002:
#6.0m), which includes a write down of #1.6m to reflect the realisable value of
the inventory of e-m@ilers held at 30 June 2003. Sales in the Amserve business
were #9.4m (2002: #4.8m).





Amserve Business (continued)


In addition to the 125k units of the original e-m@iler model that were sold,
130k units of the current model had been sold and registered as at 30 June 2003
making a total of 255k units bought and registered since the launch of the
e-m@iler.

To increase the rate of new subscribers the retail price was reduced in January
this year. The impact of this retail price reduction has been partially offset
by lower manufacturing costs but it increased the initial subsidy per unit. In
view of this the Board considered it appropriate to make a charge of #1.6m to
write down the carrying value of e-m@iler units held at the balance sheet date
to the amount at which they are to be sold. This write down recognises the loss
that would otherwise have arisen in the current financial year when these units
are sold.


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 and surf usage
although in the last year other services that are embedded in the e-m@iler's
services menu have started to generate more significant revenue. Furthermore
with the increasing e-m@iler base we are now attracting more big brand
advertisers such as AOL and O2 who promote their products and services on
screen. We believe that as the installed base grows the attractiveness to
advertisers will increase.


In June 2003 the average revenue generated from the installed base was #18k per
day (approximate annualised rate of #6.6m per annum). We expect this daily
revenue to increase through the growth in the installed base, allowing for
customer churn, and from the increase in other services available on the
e-m@iler.


Outlook


The current financial year will see the first deliveries of Amstrad's Sky+ set
top box and we believe this product could over time have significant growth
opportunities. We continue to pursue opportunities in other geographic markets
for digital satellite set top boxes.


In the Amserve business we continue to focus 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 generating sources. A new
variant of the e-m@iler with additional revenue earning functionality will be
launched later in the current financial year. We expect that the Amserve
business should turn into profit in this current financial year despite our
continued policy of subsidising the sale of units to increase the installed
base.





Sir Alan Sugar

Chairman

25 September 2003


Amstrad plc

Register No. 955321

Brentwood House

169 Kings Road  Press Enquiries

Brentwood  Martin Bland - 01277 208422

Essex CM14 4EF mbland@amstrad.com


Amstrad plc
Consolidated Profit and Loss Account
for the year ended 30 June 2003

                              Year ended 30 June 2003               Year ended
                                                                  30 June 2002

                        Total before
                           Amserve


                                        Amserve        Total             Group

                 Note         #000         #000         #000              #000

Turnover:
Group and share             34,382        9,467       43,849            40,204
of joint
venture
Less: Share of                   -            -            -              (474)
joint venture                -------      -------      -------         ---------

Group turnover              34,382        9,467       43,849            39,730

Cost of sales              (21,746)     (11,355)     (33,101)          (32,528)
                             -------      -------      -------         ---------

Gross profit/               12,636       (1,888)      10,748             7,202
(loss)
                             -------      -------      -------         ---------
Group                         (279)      (1,499)      (1,778)           (3,560)
distribution
costs
Group                       (3,158)      (2,663)      (5,821)           (5,992)
administrative               -------      -------      -------         ---------
expenses

Group net                   (3,437)      (4,162)      (7,599)           (9,552)
operating                    -------      -------      -------         ---------
expenses

Group operating              9,199       (6,050)       3,149            (2,350)
profit/(loss)
Share of joint                   -            -            -              (571)
venture                      -------      -------      -------         ---------
operating loss

Total operating              9,199       (6,050)       3,149            (2,921)
profit/(loss)
Net interest
receivable/
(payable):
Group                          703          (64)         639             1,186
Share of joint                   -            -            -               (50)
venture                      -------      -------      -------         ---------
Profit/(Loss) on             9,902       (6,114)       3,788            (1,785)
ordinary                     =======      =======
activities
before
taxation

Tax charge on                                         (1,286)              (50)
profit/(loss) on                                       -------         ---------
ordinary
activities

Profit/(Loss) on                                       2,502            (1,835)
ordinary
activities after
taxation

Minority                                                 433               386
interest                                               -------         ---------

Profit/(Loss)                                          2,935            (1,449)
attributable to
shareholders

Dividends           2                                 (2,404)           (1,839)
payable                                                -------         ---------

Retained profit/                                         531            (3,288)
(loss) for the                                         =======         =========
financial year

Group earnings/     3                                    3.7p             (1.8)p
(loss) per
share
Group diluted       3                                    3.6p             (1.8)p
earnings/(loss)
per share
Adjusted            4                                    9.0p              3.7p
earnings per
share (excluding
Amserve)
Equity dividends    2                                    3.0p              2.3p
per share

Statement of Total Recognised Gains and Losses


Profit/(Loss)                                          2,935            (1,449)
for the
financial year
Exchange
translation
differences on
foreign
currency net                                             (93)              (80)
investments
                                                       -------         ---------
Total recognised                                       2,842            (1,529)
gains/(losses)                                         =======         =========
relating to the
year


The turnover and operating results all relate to continuing operations.



Amstrad plc
Consolidated Balance Sheet
as at 30 June 2003
                                              Note   30 June 2003  30 June 2002
                                                           #000           #000

Fixed assets
Intangible assets                                           990          1,295
Tangible assets                                             411            551
                                                         --------        -------

                                                          1,401          1,846
                                                         --------        -------

Current assets
Stocks                                                    3,467          4,864
Debtors                                                   6,596          7,565
Cash at bank and in hand                                 24,528         22,617
                                                         --------        -------

                                                         34,591         35,046
                                                         --------        -------

Creditors: amounts falling due within one                (9,521)        (9,748)
year
                                                         --------        -------

Net current assets                                       25,070         25,298
                                                         --------        -------

Total assets less current liabilities                    26,471         27,144

Provisions for liabilities and charges                   (2,288)        (3,040)
                                                         --------        -------

Total net assets                                         24,183         24,104
                                                         ========        =======

Called up share capital                                   8,021          7,997
Share premium account                                     6,134          6,084
Capital reserve                                           3,618          3,618
Profit and loss account                                   6,375          5,937
                                                         --------        -------

Equity shareholders' funds                       5       24,148         23,636

Minority interest                                            35            468
                                                         --------        -------

                                                         24,183         24,104
                                                         ========        =======



Amstrad plc
Consolidated Cash Flow Statement
for the year ended 30 June 2003

                                             Note     Year ended    Year ended
                                                         30 June       30 June
                                                            2003          2002
                                                            #000          #000

Net cash inflow/(outflow) from operating         6         2,967        (2,915)
activities

Returns on investments and servicing
of finance                                                   686         1,251

Taxation received/(paid)                                     355          (578)

Capital expenditure                                         (320)         (220)

Acquisitions and disposals                                     -            21

Equity dividends paid                                     (1,839)       (1,839)
                                                         ---------     ---------

Cash inflow/(outflow) before financing                     1,849        (4,280)

Financing
Issue of shares                                               74            12
                                                         ---------     ---------

Increase/(Decrease) in cash in the year                    1,923        (4,268)
                                                         =========     =========

Reconciliation of net cash flow to movement
in net cash

Increase/(Decrease) in cash in the year                    1,923        (4,268)

Exchange translation differences                             (12)           (2)

Cash at 1 July                                            22,617        26,887
                                                         ---------     ---------

Cash at 30 June                                           24,528        22,617
                                                         =========     =========









Amstrad plc


Notes to the Financial Statements


1.                  Abridged Version


The financial information does not constitute the Company's statutory accounts
but is derived from those accounts. The full financial statements which have
received an unqualified audit report and did not receive statements under s237
(2) or (3) Companies Act 1995 will be filed with the Registrar of Companies
following the Annual General Meeting. The figures for the year to 30 June 2002
are extracted from the published financial statements for that year which
received an unqualified auditors' report and which were delivered to the
Registrar of Companies.


2.                  Dividends


The directors propose an increased final dividend of 2.2p (2002: 1.5p) per
share, which together with the interim dividend of 0.8p (2002: 0.8p) per
ordinary share paid on 8 April 2003 makes a total distribution of 3.0p (2002:
2.3p) per ordinary share in respect of the year ended 30 June 2003


3.             Earnings/(Loss) per share and diluted earnings/(loss) per share


The earnings per share is based on the profit for the year attributable to
shareholders of #2,935,000 (2002: #1,449,000 loss) and on the average number of
shares in issue during the year of 79,983,988 (2002: 79,950,371). Diluted
earnings per share is based on the same earnings figure as above and 80,433,013
ordinary shares allowing for the potential exercise of outstanding share
purchase options exercisable at a price below the average fair value during the
year. The comparative diluted loss per share for 2002 was based on the same loss
figure and the same number of shares as the 2002 loss per share.


4.                  Adjusted earnings per share (excluding Amserve)


Adjusted earnings per share excludes the losses of Amserve Limited and is
therefore based upon earnings of #7,171,000 (2002: #2,958,000) and 79,983,988
(2002: 79,950,371) ordinary shares being the average number of shares in issue
during the year.


5.                  Reconciliation of movements in shareholders' funds

                                                 Year ended   Year ended
                                                    30 June           30 June
                                                       2003              2002
                                                       #000              #000

At 1 July                                            23,636            26,992
Shares issued during the year                            74                12
Profit/(Loss) for the year                            2,935            (1,449)
Exchange translation differences                        (93)              (80)
Dividends                                            (2,404)           (1,839)
                                                   ----------         ---------
At 30 June                                           24,148            23,636
                                                   ==========         =========





6.         Net cash inflow/(outflow) from operating activities

                                                      Year ended    Year ended
                                                         30 June       30 June
                                                            2003          2002
                                                            #000          #000

Operating profit/(loss)                                    3,149        (2,350)
Exchange translation differences                             (77)          (84)
Goodwill amortisation                                        305           228
Depreciation                                                 477           328
Profit on sale of tangible fixed assets                      (22)          (19)
Decrease/(Increase) in stocks                              1,397        (3,791)
Decrease in debtors                                          671         1,835
(Decrease)/Increase in creditors                          (2,181)        1,726
Decrease in provisions                                      (752)         (788)
                                                        ----------     ---------
Net cash inflow/(outflow) from operating                   2,967        (2,915)
activities                                              ==========     =========


7.       Annual Report and Accounts


A copy of the Annual Report and Accounts will be posted to shareholders in due
course. Copies will be available from Amstrad's website (www.amstrad.com) and
may also be obtained from the Company's Registrars: Capita IRG plc, The
Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.





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