Profit fall-off is a Psion of the times

Psion has issued its half-year figures, which show a fall in profit of #2 million over the same period last year, but higher turnover.

The company made a pre-tax profit of #4.1 million on turnover of #64.4 million for the six months to 30 June, compared with a profit of #6.5 million on turnover of #53.7 million for the same period last year.

Psion chairman David Potter attributed the drop to the increased strength of the pound against other currencies. Although there have been production difficulties, which have delayed supplies of Psion?s Series 5, Potter said demand for the product was high.

?We are on target to reach planned output levels for Q4. The outlook is for strong sales in the second half of 1997.?

But Potter said profit for the whole year was likely to fall short of last year?s #16 million. ?The most immediate challenge facing Psion is to meet the very heavy demand for the Series 5.?

He pointed out that sales of Psion palmtops grew by 27 per cent in the six months, representing a turnover of #42 million.

Potter highlighted Psion?s subsidiary, Psion Dacom, as a strong performer within the group. Its PC card modems brought in #13.77 million in the six months, but turnover for industrial products was static, at #8.75 million, because of a move to new premises.