Amstrad undone by Em@iler

Amstrad has released full year results showing a slump in profits, mainly due to the subsidising of its Em@iler home messaging device.

Sir Alan Sugar's company posted a loss of £960,000 compared with a profit of £13.1m a year ago. Sales were half the £127.4m reported for 2000.

Amserve, the joint venture with electrical retailer Dixons which makes the Em@iler device, will continue to lose money into 2002, but Amstrad will invest a further £12m into the business, the company said.

Over 92,000 of the combined email and voice telephony clients have been sold.

Amstrad makes most of its money from selling set-top boxes to companies such as BSkyB.