Cost-cutting programme helps to stem losses at Psion

But revenues were still down 15 per cent year on year

Psion has seen new orders from customers including Eon

Beleaguered mobile computing service provider Psion has posted improved full-year results for 2009 thanks to a rise in sales activity and order intake in the second half of the year.

The company posted a pre-tax loss for 2009 of £3m – significantly smaller than the £7.6m it lost in 2008 – and has seen new orders from customers including RWE nPower, Dusseldorf Airport and EON.

The company’s results for 2009 also benefitted from cost-cutting to the tune of £46m.

Psion exceeded its internal cash targets for the year through improvements in supply chain and debtor management processes.

Other cost savings included a headcount reduction from 1,300 to around 900.

This offload was part of a more general Change Programme begun in 2008. Inventory fell by 35 per cent in 2009, driven largely by improved processes. Debtors and receivables were also reduced by 26 per cent.

The company said it is re-investing some savings in new products that will include a CRM solution from Salesforce.com, which will be implemented in May.

"[Psion's] blend of modularity and an open business model will give it the best chance of exploiting the economic upturn and establishing a platform for satisfactory, sustainable profit delivery," the company said.

Revenue at the company fell 15 per cent to £170m due in part to foreign exchange movements.