Psion share price bounces back

Psion saw its share price rocket by 42p this morning, as the City rushed aside lower than expected pre-tax profits and the company's current struggle to meet demand for the Series 5.

The rise in share price to £3.80 signals a dramatic turnaround for Psion which had seen its shares tumble since it made an abortive attempt to buy Amstrad last year and later warned analysts of weaker than expected performance.

Pre-tax profits had fallen by 38 per cent year-on-year from £6.51m to £4.05m for the six months to June 30, while turnover increased to £64.4m from £53.7m. The company also reported a 33 per cent increase in international sales.

Demand for the Series 5 has outstripped Psion's ability to deliver the product and could force the company to outsource some production.