Interim Results
November 01 2006 - 4:32AM
UK Regulatory
RNS Number:3512L
Reflec PLC
01 November 2006
Reflec plc ("Reflec" or "the Company")
Interim Report for the period ended 31 August, 2006
Chairman's Statement
Dear Shareholder,
I am pleased to report that trading has continued to improve during the first
half of the year to 28 February, 2007. Group sales increased by 31% compared
with the same period last year, and profits before taxation at #197,000 were
close to the #205,000 before taxation reported for the whole of the year to 28
February 2006. Earnings per share were 0.035p as against 0.005p during the same
period last year. The Directors do not recommend the payment of a dividend.
Reflec Evolution
Within its niche powder processing sector, Reflec Evolution again recorded
improved trading performance with sales of #820,000, up by 19% over the first
half of last year, and profits of 281,000, up by 25%.
Further business was acquired from existing customers and new equipment has
been installed to cope with the continuing increased demand. The increased
level of production and sales are continuing into the second half of the
year.
Reflec Media
The turnaround of Media continued with sales of #691,000, 48% higher than the
same period last year, and profits of #182,000, up by 300% on the same period
last year.
New products are being introduced including Basematt, which has already been
well received in the marketplace, and Moviset, which will be launched towards
the end of the financial year. Media's worldwide network of highly trained
agents and distributors continue to achieve increased sales penetration
especially in the United States (sales up 61%) and Europe (sales up 28%).
Media's products and services are increasingly well known for their
capabilities, it is expected that Media will maintain a strong performance in
the second half.
Reflec Reflectives
Reflectives is a seasonal business and usually records a loss in the first
half. In fact sales were above budget and losses were less than expected at
$66,000 (#36,000).
In reviewing Reflec's businesses, your Board noted that Reflectives operated in
an extremely competitive market place with low margins. As a result it was
concluded that the best way to maximise the growth potential of the business
was for Peter Smith to concentrate wholly upon the management of Reflectives
whilst standing down as Chief Executive. Further it was felt that he was best
able to achieve growth and profitability under the strong motivation of being
part owner of the business. Accordingly, as recently announced with effect from
1st September, Reflec sold 50% of Reflectives to Peter Smith at $100,000
(#55,500), a price that was independently validated. Reflectives is now being
operated as a Joint Venture of Reflec plc.
Perseus
On 1st March, 2006 Reflec invested #100,000 for 51% of this new venture which
operates in the security field. In addition Reflec has agreed to provide
further loan finance to Perseus up to an additional #300,000.
While significant progress has been achieved, it has been slower than
anticipated. A review of the business plan shows that substantial orders have
been received and the initial hopes for the business remain fully justified.
Existing clients have all shown their enthusiasm for Perseus products by
placing further orders. Two new products have been developed which are of great
interest to those responsible for the security of infrastructure facilities
especially in the run-up to the 2012 Olympic Games.
The costs of developing these products amounted to #258,000 and have been
capitalised as development costs in the Group Balance Sheet at 31st August,
2006. It is expected that Perseus will move past breakeven at an operating
level during the second half of the year, which is supported by recent success
in receiving further orders worth #110,000 for delivery over the next few
months.
Outlook
For the second six months of the year, we expect the improved trend in trading
to be at least maintained.
Tim Hearley
Chairman
Group profit and loss account
For the period to 31st August, 2006
1 March to 31-Aug Year ended 28-Feb 1 March to 31-Aug
2006 (unaudited) 2006 (audited) 2005 (unaudited)
#000s #000s
#000s
Turnover 2,539 4,565 1,945
--------- -------- ---------
Operating
profit 192 198 10
Interest
receivable 1 9 3
Interest
payable and
similar
charges 1 2 0
--------- -------- ---------
Profit on
ordinary
activities
before
taxation 192 205 13
Tax credit on
profit on
ordinary
activities 0 25 13
--------- -------- ---------
Profit after
tax 192 230 26
Minority
Interest 5
Profit for the
period 197 230 26
========= ======== =========
Basic earnings
per share 0.035p 0.041p 0.005p
========= ======== =========
Diluted
earnings per
share 0.033p 0.039p 0.005p
========= ======== =========
Consolidated Statement of Total Recognised Gains and Losses
For the period to 31st August, 2006
1 March to 31-Aug Year ended 1 March to 31-Aug
2006 (unaudited) 28-Feb 2006 2005 (unaudited)
#000s (audited) #000s
#000s
Profit for the
period after
taxation 197 230 26
Currency
translation
differences on
foreign
currency (87) 2 55
net investment
--------- -------- ---------
Total
recognised
gains and
losses for the
period 110 232 81
========= ======== =========
Group balance sheet
At 31st August, 2006
1 March to Year ended 1 March to
31-Aug 2006 28-Feb 2006 31-Aug 2005
(unaudited) (audited) (unaudited)
#000s #000s
#000s
Fixed assets
- Intangible
assets 742 485 506
- Tangible
assets 1,096 1,014 1,076
--------- -------- ---------
1,838 1,499 1,582
--------- -------- ---------
Current assets
- Stocks 684 787 873
--------- -------- ---------
- Debtors -
amounts
falling due
within one
year 1,293 934 1,067
- Debtors -
amounts
falling due
after one year 76 76 77
--------- -------- ---------
1,369 1,010 1,144
- Cash at bank
and in hand 340 672 353
--------- -------- ---------
Current assets 2,392 2,469 2,370
--------- -------- ---------
Creditors:
amounts
falling due
within one
year 721 565 633
--------- -------- ---------
Net current
assets 1,671 1,904 1,737
--------- -------- ---------
Total assets
less current
liabilities 3,509 3,403 3,319
Provisions for
liabilities 0 0 67
--------- -------- ---------
3,509 3,403 3,252
========= ======== =========
Capital and reserves
- Called up
share capital 558 558 558
- Share
premium
account 13,749 13,749 13,749
- Profit and
loss account (10,793) (10,904) (11,055)
--------- -------- ---------
Shareholders'
funds 3,514 3,403 3,252
- Minority
Interest (5) 0 0
--------- -------- ---------
3,509 3,403 3,252
========= ======== =========
Group cash flow statement
1 March to 31-Aug Year ended 1 March to 31-Aug
2006 (unaudited) 28-Feb 2006 2005 (unaudited)
#000s (audited) #000s
#000s
Net cash
(outflow)/infl
ow from
operating
activities (39) 428 (97)
Returns on
investments
and servicing
of finance 0 7 3
Taxation 0 34 13
Capital
expenditure
and financial
investment (430) (45) (11)
Disposals 0 (196) 0
--------- -------- ---------
(469) 228 (92)
Financing 0 (2) (1)
--------- -------- ---------
(Decrease)/inc
rease in cash (469) 226 (93)
========= ======== =========
Reconcilliation of net cash flow to funds
1 March to 31-Aug Year ended 1 March to 31-Aug
2006 (unaudited) 28-Feb 2006 2005 (unaudited)
#000s (audited) #000s
#000s
(Decrease)/inc
rease in cash
in the period (469) 226 (93)
Cash outflow
from movement
in debt and
lease
financing 0 2 1
--------- -------- ---------
Change in net
funds
resulting from
cash flow (469) 228 (92)
Currency
translation
differences (2) 2 1
--------- -------- ---------
Change in net
funds (471) 230 (91)
Net funds at
start of
period 672 442 444
--------- -------- ---------
Net funds at
end of period 201 672 353
========= ======== =========
Notes to the interim statement
1. The interim statement for Reflec plc relates to the consolidated results for
the six months ended 31 August 2006 and the comparative results for the year
ended 28 February 2006 and the six months ended 31 August 2005. These interim
results are not the Company's statutory accounts. The comparatives for the full
year ended 28th February 2006 are not the Company's full statutory accounts for
that year. A copy of the statutory accounts for that year has been delivered to
the Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain a statement under section 237(2)-(3) of the
Companies Act 1985.
2.The interim statement has been prepared on the basis of the accounting
policies set out in the statutory financial statements for the year ended 28
February 2006. The interim statement was approved by the Board of Directors on
the 31 October 2006. The balance sheet at 28 February 2006 and the results for
the year then ended have been abridged from the audited accounts for the year
ended 28 February 2006.
3.The calculation of the basic earnings per share for the period to 31 August
2006 is based upon profits of #197,292 and on the weighted average number of
ordinary shares in issue during the period of 558,033,100. The calculation of
the basic earnings per share for the period ended 31 August 2005 is based on a
profit of #26,351 and on the weighted average number of ordinary shares in issue
during the period of 558,033,100. When the dilutive potential of share options
have been taken into account the average number of shares issued or under option
are 594,742,857 (2005 - 558,033,100).
4.Copies of the interim statement will be posted on the Reflec web site
(www.reflec.com) and are available from the Company Secretary at the Registered
Office, Road One, Winsford Industrial Estate, Winsford, Cheshire, CW7 3QQ.
5.Reconciliation of operating profit to net cash (outflow)/inflow from operating
activities:
1 March to 31-Aug 2006 Year ended 28-Feb 1 March to 31-Aug 2005
(unaudited) #000s 2006 (audited) (unaudited) #000s
#000s
Operating
profit 192 198 10
Depreciation
and
amortisation
of fixed
assets 67 202 95
Decrease/(Incr
ease) in
stocks 53 56 5
(Increase) in
debtors (381) (24) (132)
Increase/(decr
ease) in
creditors 29 (4) (75)
--------- -------- ---------
Net cash
inflow/(outflo
w) from
operating
activities (39) 428 (97)
========= ======== =========
6. Analysis of net funds
1 March to 31-Aug 2006 Year ended 28-Feb 1 March to 31-Aug 2005
(unaudited) #000s 2006 (audited) (unaudited) #000s
#000s
Cash at bank
and in hand 340 672 353
Overdraft (139) 0 0
--------- -------- ---------
Net funds at
end of period 201 672 353
========= ======== =========
Reflec plc
Independent Review Report to Reflec PLC
Introduction
We have been instructed by the Company to review the unaudited Group profit and
loss account for the 6 months ended 31 August 2006, the unaudited Group
statement of total recognised gains and losses for the period ended 31 August
2006, the unaudited Group balance sheet as at 31 August 2006, the unaudited
Group cash flow statement for the six months ended 31 August 2006 and the
related notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of rules of the London Stock
Exchange for companies trading securities on the AIM market and for no other
purpose. No person is entitled to rely on this report unless such a person is a
person entitled to rely upon this report by virtue of and for the purpose of our
terms of engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for this report
to any other person or for any other purpose and we hereby expressly disclaim
any and all such liability.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the rules of the
London Stock Exchange for companies trading securities on the AIM market which
require that the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Company's annual accounts
having regard to the accounting standards applicable to such annual accounts.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom by auditors
of fully listed companies. A review consists principally of making enquiries of
management and applying analytical procedures to the financial information and
underlying financial data and based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit performed in accordance with International Standards on
Auditing (United Kingdom and Ireland) and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 August 2006.
BDO STOY HAYWARD LLP
Chartered Accountants
Manchester
31 October 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KFLBBQFBLFBV
Reflec (LSE:REF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Reflec (LSE:REF)
Historical Stock Chart
From Jul 2023 to Jul 2024
