Psion to Resume Dividend Payments if Symbian Stake Sale is Successful

Strategic Insights -

Psion, the mobile computing company, is poised to resume dividend payments this year if it successfully disposes of its 31.1 percent stake in the Symbian joint venture. The sale, which involves Psion's stake being bought out by Nokia, is expected to yield Pounds 135.7 million, alleviating some of the financial pressures on the company. Psion's Chief Executive, Alastair Crawford, has reassured shareholders that the company will carefully review all investment opportunities and use its assets prudently, considering alternative methods for distributing surplus funds.

Key Takeaways:

  • Psion will resume dividend payments if the Symbian stake sale is successful, with the sale expected to realize Pounds 135.7 million.
  • The company faces opposition from some shareholders over the sale, with concerns about the valuation and use of the proceeds.
  • Alastair Crawford has assured shareholders that the company will carefully review investment opportunities and use its assets prudently.
  • Psion's shares lost a third of their market value after the company announced the Symbian stake sale, closing 3/4p lower at 61 3/4p yesterday.
  • The Symbian stake sale is expected to simplify Psion's operations and allow it to focus on its mobile enterprise businesses.
  • The company's plans for the disposal money will be crucial in determining its future value, with forecast earnings per share of 1.8p for the current year.

Statistics:

  • Pounds 135.7 million - the expected proceeds from the sale of Psion's Symbian stake.
  • 31.1 percent - the proportion of the Symbian joint venture that Psion owns.
  • Pounds 141.5m - Psion's reported 2003 turnover, up 8 percent from the previous year.
  • Pounds 21m - Psion's pre-tax losses in 2003.
  • 3/4p - the decrease in Psion's share price after the company announced the Symbian stake sale.
  • 61 3/4p - Psion's share price at the close of yesterday's trading.
  • 1.8p - forecast earnings per share for the current year.

Sources:

  • CHRIS NUTTALL, Psion, the mobile computing company (quotation from article)
  • Psion financial reports (2003 turnover, pre-tax losses)
  • FT Comment (opinion piece)