Following the breakdown of talks to sell the business to Psion Plc, Amstrad Plc has moved to settle the market, now worried that the group has no direction, and announced its results for the year a month ahead of schedule. The move is part of the attempt by chairman and dominant shareholder Alan Sugar to instill some confidence back in to the market and revive the group’s flagging share price. The City has never really made its mind up about the Brentwood, UK-based company, but the share price moved ahead 15 pence to reach 153 pence as Sugar, who still holds about a third of the equity, announced his strategy to move away from consumer electronics to bring the company back into profit. Pre-tax losses for the year to June 30 were at 14.9m British pounds, which includes an exceptional restructuring charge of 6.7m pounds, from profits of 3m pounds last time. Revenue increased by 21% to 329.3m pounds, but regardless of losses, at year end the group had 106.8m pounds cash in the bank. At the interim stage, Sugar predicted a 4m pound charge to reoganize the original Amstrad Consumer Electronics Ltd business would push the business back into profitability. However, during the second half of the year, trading conditions deteriorated in Europe and the group announced a 6.7m pound fundamental restructuring plan in July.
