For immediate release 17 November 2011
Psion Plc
("Psion" or the "Group")
Interim Management Statement
Psion today announces its Interim Management Statement relating to the period from 1 July 2011 to 31 October 2011.
The Group's performance during the period under review has been in line with the Board's expectations.
Order inflow in the year to date is ahead of the same period in 2010 on a constant currency basis. Order growth is being driven mainly by new products, in particular the EP10, a lower cost rugged PDA device and the Omnii family of products. Psion continues to develop relationships with new partners including Verizon Wireless, Ingram Micro Europe and our OEM partner.
The Group is seeing some evidence of longer cycle times for customers to place orders and extended delivery dates for products as customers are more cautious over capital expenditure in the current economic climate. The Board expects the trading environment to continue to be challenging in the remainder of the year but, subject to there being no further deterioration in our market conditions, results for the year ended 31 December 2011 are expected to be in line with current market expectations (see note 4).
The Group has continued to improve its processes and operational structure. This will enable the Group to make significant efficiency savings in its back office functions in the first half of 2012, which should in turn reduce the cost base to mitigate the continued uncertainty over the economic prospects in its key European and North American markets. The restructuring costs associated with this will be material but will have a payback period within a year from programme completion.
There have been no material movements in average currency exchange rates, to which the Group is exposed, namely the Euro, US dollar and Canadian dollar in the second half to date. The company continues to have significant cash on its balance sheet.
For further enquiries, please contact:
Psion John Conoley, CEO Adrian Colman, CFO | +44 (0) 207 025 6860 |
Buchanan Communications Charles Ryland Suzanne Brocks Helen Chan | +44 (0) 207 466 5000 psion@buchanan.uk.com |
Notes to Editors
1. | Psion is the pioneer in quality mobile handheld computers and their application in industrial markets around the world. We've innovated mobile computing since 1980, starting with the invention of the PDA, through to helping our global customers solve their business problems today. Our clients include Volkswagen, SNCF, RWE nPower, E.ON, BMW, Goodyear, Copenhagen Airports, BNSF and many others. Through our open innovation business model "Open Source Mobility", we have the ability to work directly with our customers and partners to co-create new variants of our mobile hardware, software and services that meet the specific needs of the marketplace. This collaborative relationship is encouraged by our innovative community site, www.ingenuityworking.com. Psion plc is a public company listed on the London Stock Exchange. It is headquartered in London with operational offices located in Europe, North America, Asia Pacific, Latin America and Africa. For more information, visit www.psion.com |
2. | The information in this release is based on management information. |
3. | Certain statements in this announcement are forward looking statements. Such statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. The information does not assume any responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein. |
4. | Operating profit before exceptional items and share based payment charges and after deducting the net capitalisation of development expenditure. |
