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Ratio Analysis Fiscal 2005 was another successful year for Amstrad by any measure

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Introduction

CONTENTS PAGE 2 Shareholder Letter 3 Ratios Calculations 6 Balance Sheet 2004 Formulas 8 Balance sheet 2005 Formulas 9 Profit and Loss Account 2005 Formulas 10 Cash Flow Statement Formulas 11 AMSTRADS ACCOUNTS 13 SCREEN PRINT OF SPREADSHEET MAIN MENU 19 Shareholder Letter Dear Mr. Wall Fiscal 2005 was another successful year for Amstrad by any measure, as we continued to outdistance the competition and solidify our leadership in each of our major businesses. Customers around the world continue to benefit from our innovations, while our development of new technologies will position the company for future growth. With healthy demand across all our customer segments and channels, 2005 revenue increased above �45 million to a record �102,513 000. Operating income increased by 84 percent from �15,152,000 in 2004 to 17,904,000 in 2005. Meanwhile, Sales have almost doubled this year but the gross margin reduced reflecting our competitive pricing to secure large volume orders. We reported a profit before tax of �19.1m (2004: �15.6m) on sales of �102.5m (2004: �57.4m). The earnings per share were 16.9p (2004: 14.6p) We increased our annual investment in research and development by 96 percent from 2004 (2432m) to 2005 (2513m) As is customary in the consumer electronics industry, there is consistent demand for price reduction as existing models mature. Our experienced team continue to focus on cost reduction through re engineering, component price and manufacturing cost reductions. ...read more.

Middle

The product will be sold on-line through a dedicated website. This new but controlled venture takes the Group into the growing consumer electronic healthcare market, one which dependent on the success of this venture has a lot of potential for the introduction of other products. The product has been designed and produced to take into account other World markets. Dependent on the success of the UK launch, we plan to roll the product out to other European and World markets. (www.amstrad.co.uk) Amstrad accomplished a great deal during its 21st year. Our people understand that and are justifiably proud. However; we see fiscal 2005 as simply the first of our next 20 years. We see our obligation to clients growing every day. And we see extraordinary opportunity for Amstrad and its stakeholders, through existing and new customers, products and services. The future holds great challenge and promise for Amstrad. While we approach our future respectfully, we also do so confidently. It's a view we like very much. And our intention is to fully realize what it offers over time. So we begin 2006 with confidence that we can build our future on a foundation of strength and also have developed leaders that will take us into a future of boundless possibilities. It is challenging, but it is exciting. And we are up to the challenge. In conclusion, as outlined above, this year has seen very significant sales of standard and PVR set top boxes. ...read more.

Conclusion

Corporation Tax 40 Net Profit after Tax =(D19-D20) Dividends - Paid 14 - Proposed 31 Net Profit =(D21-D22) Cash Flow Statement Formulas Operating Activities �000 �000 Net Cash inflow from Operating Activities =C39 Return on Investment and Servicing of Finance Less Interest Paid ='P and L Account'!D18 Interest Received ='P and L Account'!D11 =(B9-B8) Taxation Less Corporation Tax =('Balance Sheet'!D24-'Balance Sheet'!I24)+('P and L Account'!D20) Capital Expenditure and Financial Investments Less Payments to acquire intangible Fixed Assets ='Balance Sheet'!K7-'Balance Sheet'!F7 Less Payments to acquire tangible Fixed Assets =('Balance Sheet'!I9-'Balance Sheet'!D9) =SUM(B15:B16) Equity Dividends Paid Less Dividend Paid During year =('Balance Sheet'!D25-'Balance Sheet'!I25)+('P and L Account'!D22+'P and L Account'!D23) Net Cash before Financing =(C5+C9-C12-C16-C19) Financing Proceeds from Issue of Ordinary Shares =('Balance Sheet'!K35+'Balance Sheet'!K34)-('Balance Sheet'!F35+'Balance Sheet'!F34) Issue of Long term Borrowing =('Balance Sheet'!K30-'Balance Sheet'!F30) =SUM(B24:B25) Decrease in Cash =(C20+C25) � 0 0 0 Reconciliation of Operating Profit to net Cash inflows from Operating Activities Operating Profit ='P and L Account'!D17 Interest paid ='P and L Account'!D18 Interest Received ='P and L Account'!D11 Depreciation ='Balance Sheet'!J9-'Balance Sheet'!E9 Increase in Stock ='Balance Sheet'!J17-'Balance Sheet'!E17 Increase Debtors ='Balance Sheet'!J18-'Balance Sheet'!E18 Decrease in Creditors ='Balance Sheet'!I23-'Balance Sheet'!D23 Net Cash Flow from Operating Activities =(C32+C33-C34+C35-C36-C37+C38) Reconciliation of net Cash to movements in net debt �0 0 0 Cash as at 31 December 2005 ='Balance Sheet'!J19 Cash as at 31 January 2004 ='Balance Sheet'!E19 Net Debt =(B43-B44) SCREEN PRINT OF SPREADSHEET MAIN MENU The above shows the macro codes used. ?? ?? ?? ?? Page 1 of 12 ...read more.

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