REFLEX, the computer group, has continued with the steady recovery established in the first half of the year. Preliminary results show an operating profit of £371,000 in continuing operations, contrasting with the loss of £95,000 in 1994.
Reflex, however, suffered from an exceptional loss of £365,000 on the disposal of subsidiaries. It has also written off goodwill of £1,161,000 associated with its subsidiaries which are considered to have suffered a permanent diminution in value. These resulted in a pre-tax loss of £1,029,000.
However, the goodwill had no cash flow implications and was already in the balance sheet. Net assets actually improved from £154,000 to £775,000.
Reflex operates three British computer servicing companies Short Term Rental, based in London First Rental in Cambridge and Reflex CPMS based in Maidenhead, Kent. All are trading profitably. Reflex, which has net cash of £84,000, is looking for a suitable investment or acquisition.
Turnover from the continuing operations fell from £3,314,000 in 1994 to £3,206,000 in 1995. Interest costs fell from £74,000 to £39,000. There was a loss per share of 3.7p. However, excluding goodwill, headline earnings per shares amounted to 1.22p, contrasting with the loss of 15.36p in 1994.
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