Sugar's turn to be judged on results

THE would-be apprentices on Sir Alan Sugar's new entrepreneurs reality television show, which started last night, will be taking a close look at the man's business performance today as his Amstrad group revealed strong growth but a squeeze on profit margins. Amstrad, once known for personal computers, has moved its target market into television set-top boxes and most recently into Sugar's new love, the emailer telephone.

The company, which Sugar chairs but is effectively run by his son Simon, reported a doubling in profits in the first half of the year to £14.2m despite a reduction in margins as a result of price pressure.

Sales in the period to 31 December were up 115% at £63.5m. The six months, with Christmas sales and the company gearing up inventory ahead of the Chinese New Year, is traditionally Amstrad's stronger.

It is increasing the interim dividend by a third to 2p, which pays Sugar himself nearly £500,000 for his near-30% stake. The half year saw exceptional rises in sales of set-top boxes in the Italian market as well as strong demand in the UK.

However, sales of its E3 e-mailer have been low. "Various initiatives are planned in the second half to stimulate sales once new software is available,' said Sugar.

On the future Sugar said: 'For Amstrad we see the sacred treasures of our business as being advanced telephony and digital gateways into the home.'