At the interim stage of what chairman David Potter had said would be a make or break year for Psion Plc (CI No 1,642), things do not look good. The portable computer, data communications and applications software company just about broke even – pre-tax profits plummeted 91% to UKP27,000 on turnover down 25% at UKP11.5m. On the computer side, the poor performance is attributed to a gap in the company’s product range, as well as to that old toad the recession. The corporate systems market, Psion’s key area of operation, has been hard hit, though on the upside the company says its Organiser product range has continued to be competitive, with recent sales to Barclays bank Plc and British Telecommunications Plc. Psion Dacom, which was doing very badly last year, has achieved a small profit, following a heavy restructuring programme, and the chairman expresses confidence that the outlook for its data communications business is encouraging. Psion launched a new range of handheld computers, the Psion HC family, in April, which the company claims has been well received, contributing to sales and profits. A second range of handhelds will follow later this month. The second half of the year, Potter expects, will continue to be an uphill struggle, though he feels sure that, after a cost-cutting exercise implemented in July, Psion will just be able to weather the storm.
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