Hi-tech group Psion today branded 2001 the most "difficult and disappointing" period in the firm's 21-year history.

Psion was rocked by the tech downturn and in July announced it was quitting the personal organiser market, a sector in which it had originally made its name.

Today, chairman David Potter said: "The last year was the most difficult and disappointing in your company's 21-year history."

One of the biggest blows was the decision by mobile phone group Motorola to pull out of a joint development project with Psion.

The firm cut staff numbers in the Psion Digital division from 550 to 151 and another 80 people will go during 2002 when the Milton Keynes manufacturing plant shuts.

Once closed, Mr Potter said only a "very modest cost base" relating to the business would exist to provide ongoing support and service to customers.

Mr Potter's comments came as Psion posted final figures for the year to December 31.

Turnover slumped from £219.7 million to £181.1 million, while losses before tax and one-off costs came in at £17.4 million.

Last year Psion posted equivalent profits of £2.7 million.