UK computer group Psion has announced a loss of £150m after what it calls the most difficult and disappointing year in its history.

The company made its name with a ground-breaking range of hand-held computers, but pulled out of that market when it restructured in July

Psion switched its focus to its business oriented division Psion Teklogix, and its Symbian mobile phone software operations

Symbian is a joint venture with Ericsson, Motorola, Matsushita and Nokia to allow new-generation mobile phones, computers and handheld devices to communicate with each other.

Subdued market

Psion said it needed more third-generation phones to take up the Symbian system if its investment in the technology was to pay off.

The project has been affected by the problems in the telecoms sector.

"Until we see major volumes of Smartphones using the Symbian software established in the market, the realisation of our investment will remain uncertain," said chairman David Potter.

"However, the board believes that Symbian's position is strengthening and that the outlook is positive."

Psion Teklogix sells hardware and software to help companies monitor their supply chains.

It said the markets for its main Teklogix business remain subdued, but it expected a gradual improvement in demand.

Psion said it has appointed Ian McElroy its new chief executive, with incumbent David Levin becoming the CEO of Symbian.