New product boosts Psion

Technology group Psion had a year of two halves. After a £3.9m loss in the first half of the year, it made a comeback with the successful launch of a new hand-held product.

The low-cost device, used in the transport and logistics industries, pushed the mobile computer pioneer back to break-even in the second half. Analysts are now waiting to see if it can maintain momentum.

If new product launches go similarly well the company could see bigger volumes and higher revenues. However, Psion risks being undercut by bigger rivals who can price products more competitively.

The shares, at 50.5p, are trading at 15 times forecast 2012 earnings. That looks expensive, given that Psion is still on the road to recovery.

Year to Dec 31 % change
Pre-tax profit£0.1m-98
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