Psion organises sales and profit recovery

Click to follow
The Independent Online
Strong demand for its handheld personal computers saw Psion double profits for the second year running as the recovery from 1991's losses continued in the 12 months to December.

David Potter, the founder and chairman, said: "We are now well placed to participate in markets that are widely forecast to be on the threshold of a period of rapid growth and change as we move towards the new millenium."

The continuing improvement follows a rocky ride for investors as shares collapsed from 374p to 40p during 1990 and 1991. Yesterday they closed 12p higher at 265p.

Profits jumped 116 per cent from £3.03m to £6.55m, boosted by an increase in retail sales of the Series 3a organiser and rapid sales growth in Europe.

Turnover rose 49 per cent to £61.3m despite slower than expected growth in the US - where Psion has always struggled against the Japanese competition. Earnings per share doubled from 9.1p to 18.5p and the dividend rose to 3.5p (2.8p).

Sales of the Series 3 range, together with associated peripherals, grew by 77 per cent to £39.1m, with half coming from the UK. Demand so far in 1995 is running well ahead of last year.

Overseas sales grew by 50 per cent, with Europe especially strong. New distribution channels were opened in Spain and Italy to complement the existing markets in northern Europe.

Psion spent 4.4 per cent of turnover on research in 1994, doubling the number of employees involved in developing new products. Higher levels of research spending are planned for the current year.