The Group recorded strong growth in sales both organically and through the acquisition of Teklogix, which contributed in the last quarter. Sales grew 46% to GBP219.7m (1999 – GBP150.4m). Operating profits before exceptional items and goodwill were GBP7.7m (1999 – GBP7.9m).
Profits have been held back by the substantial investment Psion has made in Symbian, in Psion Computers and in new ventures. After interest and Psion’s share of joint ventures, pre tax profits before exceptional items and the amortisation of goodwill were GBP2.7m (1999 – GBP4.9m). Exceptional items and the amortisation of goodwill result in charges of GBP4.1m and GBP6.7m respectively, leaving a pre tax loss for the year of GBP8.1m.
As a result of the termination of the Motorola joint development program and our decision not to proceed with the Odin project independently, the Board of Psion has decided to restructure Psion Computers, Psion InfoMedia and Psion Connect into a single division, leading to a charge of GBP11.0m in 2001.
The balance sheet of the Group remains strong with net cash at the end of the year of GBP39.1m. The Directors recommend a final dividend for the year of 0.42p making a total for the year of 0.62p, the same as in 1999 after allowing for the share split in May. The proposed final dividend, subject to shareholders’ approval at the forthcoming Annual General Meeting, will be paid on Friday 11 May 2001 to shareholders recorded on the Company’s Register on Friday 16 March 2001.
