The markets believe that the the Psion Plc success story is far from over. Shares rose 7p to 260p by midday and some analysts feel they still represent good value. The London-based group reported record pre-tax profits of ú6.5m, up 116% on last year. Psion saw strong demand for its products worldwide, and despite problems in the US, its second largest market, turnover for the group rose 49% to ú61.3m. The Series 3a palmtop computers led the way, and production has been stepped up to rectify supply problems experienced in the past. Sales of the Series 3 range jumped 77% to ú39.1m and new models are planned before midsummer (CI No 2,590). Psion Dacom Plc, the data communications arm has been turned round in recent years and now has a dominant position in the UK with its Gold Card PCMCIA modem. Its sales grew 54% to ú7.4m. The HC corporate terminals range is making good progress, especially in the radio wide area networking market, and sales rose by 73% to ú7.1m. The group’s old stager, the Organiser II refuses to die, but sales slipped 19% to ú7.1m. Demand in both the UK retail and corporate markets is growing. The Series 3a range is now stocked by all high street retailers in more than 1,500 outlets. The growth in corporate systems and modems is set to continue, according to the company, and new product are planned for 1995. Chairman David Potter believes that international expansion is the key to future prosperity. Psion has wholly-owned subsidiaries in Germany and the US, and it is the latter that has experienced continuing problems. Sales there rose 13% to ú7.6m, but it made a pre-tax loss of ú507,000. Potter believes that bad publicity surrounding the pen-based Personal Digital Assistant market impacted sales of its products. Psion products are available in more than 1,500 retails outlets in the US, almost double the number of last year. Potter that believes that a good second half was a prelude to better things in 1995. International sales overall increased by 50% to ú29.1m, with good progress in France, Belgium, the Netherlands, Sw itzerland and Austria. Psion GmbH in Germany saw sales rise by 37% to ú5.6m. Research and development spending actually dropped in relation to turnover, to 4.4%, despite the fact that the staff numbers were doubled. However, Psion is keen to retain its reputation for innovative products, and higher spending is planned for this year. The head-count for the group increased by almost 200 last year. Psion’s net cash balances grew to ú3.5m at the year-end and the balance sheet has no net gearing. The group will apply for a full London Stock Exchange listing this April. A final dividend of 2.4 pence is being recommended, a total of 3.5 pence for the year, a rise of up 25%.
