Reflex Group has reported losses of £1,154,000 for the six months to end June after provisions and write-offs of £1,256,000 from the closure of its British-based Internet cafe venture. The company said it is now looking to new investment opportunities. A spokesman said the company had a number of options for raising funds for a suitable opportunity. "We will be out looking. What we do will depend on the opportunities that arise," he said.
The latest result compares with a profit of £190,000 for the corresponding period in 1996. Profits from continuing operations were down to £101,000 from £232,000.
In July, Reflex announced a decision to pull out of its Internet cafe venture in Britain. At that time the company closed two of its three cafes, run by its subsidiary Hands On Limited.
Hands On was acquired for £150,000 in May 1996 with a plan to develop a chain of Internet cafes incorporating a training service for customers, according to a spokesman. The company raised £1,000,000 from shareholders to fund the venture.
"The idea was working in the US and we had high hopes for the venture but we pointed out when we raised funds that it was not a proven market here," he said.
The latest results show that the Hands On operation generated losses of £348,000 on a turnover of £184,000. In addition, the company has made provisions of £908,000 including a goodwill write-off of £257,000 provisions to cover its exit from the venture.
Continuing operations, mainly two data processing subsidiaries in Britain Short Term Rental Systems and First Rental, generated profits of £101,000, down from £232,000. Turnover on continuing operations improved marginally to £1,356,000 from £1,330,000.
The loss of 2.77p per share for the period compared with a profit of 60p per share. At the end of June, Reflex had net assets or shareholders' funds of £1,101,000, down from £1,833,000.
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