Back in the heady days of the tech boom, Psion was one of the most well-known technology brands in the country. The company’s handheld computers sold like hot cakes and its Symbian mobile phone operating system looked set to dominate the emerging market for powerful mobile phones.
Of course, things didn’t quite work out like that. Unlike many of its peers, the former FTSE 100 constituent is still trading on London’s markets, albeit with a valuation of only £132 million. Its shares have received a welcome boost after KBC Peel Hunt initiated coverage on the stock with a “buy” rating with a 135p price target.
KBC analyst Simon Strong said that, following a restructuring by the company’s new management team, he believed that their target for a 10 per cent return on sales was “wholly realistic”. He added that, in a fragmented market, Psion was well-positioned as a consolidator or takeover target. The company’s shares added 4¾p to 98p.
Pawnbroker H&T Group added 7½p to 280p as the glitter in the rising gold price caught the eye of investors. H&T sells a lot of scrap gold and Daniel Stewart, the broker, argues that the best way to play the strength in the gold price is through pawnbrokers.
Hydrogen Group, unchanged at 56p, reported a 30 per cent fall in first-half revenue, while net fee income declined 47 per cent. The staffing company’s outlook appears to be stabilising, however, and Seymour Pierce noted that there appeared to be “signs of life”. It has moved its rating to “hold” from “sell”.
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Kentz Group, up 4p to 178½p, continued its good run after winning another contract, this time from Qatar Petroleum. It will replace two existing glycol regeneration trains, a deal worth $15 million (£9 million).