Price 0.70-0.80 pence : 30.11.04


RNS Number:8345F
Reflec PLC
30 November 2004


Reflec plc
("Reflec" or "the Company")
Results for the 6 months ended 31 August 2004

Chairman's Interim Statement

In the first six months of the year, the company generated revenues of #1.313m,
compared to #1.469m for the first half of last year. This resulted in a loss of
#286,000 compared to a loss of #175,000 for the same period last year. At the
half year the Company's net current assets were #1.699m, which included #438,000
of cash.

No dividend is payable.

Reflectives
Reflec USA has a cyclical cash flow pattern. Summer time is the peak period for
illumiNITETM orders which are then fulfilled from September onwards. Its
turnover for the first half of the year was slightly lower compared to the same
period last year. In the first two months of the second half, Reflec USA made
healthy profits with the order book indicating that this trend is likely to
continue.

Evolution
Evolution had a solid first half and continues to service its customers
effectively and profitably. Evolution made a strong start to the second half and
good results for the year are anticipated.

Reflecmedia
Disappointingly, this division made a loss. However the results of attending the
world's two biggest broadcasting conventions and the effects of current
marketing activities are still coming through. Reflecmedia has increased its
sales force. The UK sales team has been strengthened, whilst additional staff in
the USA are working with the US's largest distributor of broadcast production
equipment, ensuring that its Chromatte product range is being constantly
promoted and sold. In Singapore, Reflecmedia has appointed a sales manager to
sell into the important Far East TV market.

During the first half Reflecmedia launched "Mattenee", a chroma key software
plug-in for non-linear editing and compositing applications, including Adobe
Premiere and Apple Final Cut Pro. Mattenee complements the use of ChromatteTM,
the Company's blue screen material. Other new product launches included an
update to our LiteRing, a new LiteRing controller and professional Product Carry
Cases. Initial indications are that these products have been well received in
the market place. Finally, customer service has been enhanced by increased
inventory levels. Overall, Reflecmedia is expected to be profitable in the
second half.

Outlook
Since the AGM actions have been taken to eliminate losses and achieve
profitability in the second half of this financial year, your Board expects
continued good results from Reflectives and Evolution and action has been taken
with Reflecmedia in order to achieve profitability. We therefore expect the
second half to be profitable, together with a stronger cash position.

The Board is now focused on growth, both organically and by acquisition. In
particular, there are expansion opportunities for Evolution which are being
actively pursued. Furthermore, and of importance for Reflectives, there is a
major opportunity to form a manufacturing and distribution partnership with a
Chinese company. This will materially improve our competitiveness and open up
new markets. The principal terms have been agreed and details of the heads of
agreement will be announced shortly. Your Board sees this as an exciting
development.

Board Appointments
At the AGM your Board took note of shareholder concerns on corporate governance.
As a result the Board has been strengthened by the appointment of two
Non-executive Directors, John Kinder and Ian Proud, with effect from 30 November
2004.

John Kinder, FCA, started his career as a merchant banker and then moved into
managing industrial companies. Recently he was a non-executive director with
Tudor Webasto as well as advising businesses in managing strategic turnarounds.
He will bring to the Board some very valuable analytical skills, especially with
regard to the Company's financial performance. Ian Proud works in a City
consultancy and will bring to the Board marketing and business development
skills and experience gained at senior executive level in three blue chip
companies.

Summary
Since the AGM the Company has developed firm foundations from which it can move
into profitability. The second half will be stronger and the cash position will
show a significant improvement helped by the seasonal reduction of Reflectives'
inventory. With these foundations in place, I look forward to reporting further
positive developments with the preliminary results.

Tim Hearley
Chairman

Buying volume picking up, real spread 1.2-1.3 pence

200,000 buy at 1.29 pence

Day traders sold out, excellent price to get in now, run up to 2 pence possible next week.

Just picked up some at 1.14 pence.

Sue, is there only you on this one or are you employed by City Equities, if so is this another one we are likely to see disappear off the screens.

Hi,

No not at all, was a bit mystified with the way the price has dropped back. It could be that the price will stay at the 1 pence level until the 17th of November when the new shares come into the market.

i also checked for whole morning but it start dropping in late morning I wonder why

bought this one some time ago when hoped/thought was about to break 2p level
clearly it didnt cannot understand why stalled last week on what is clearly two goot pieces of news or is it the poor sentiment of never delivering thats holding it back ?

Ref on the move..

yep, some gains today. Still not convinced too much until it can break the 1.3-1.5 pence barrier. The MMs seem to play nasty games whenever the prices gets there.

Should be on the move properly from the 17th when the new shares come into the market.

Sue.

Hi new to the MoneyAm boards,have been follower of Reflec since Jan 99.I think that the price has been drifting lower recently because of the speculation over the recent share placing.A lot of punters on the other boards keep questioning who has bought the shares and for what sort of profit they would be looking to sell on.They are not happy the price failed to move up after better news at the Interims.My opinion is they have no medium to longterm intrest in the company,unlike myself.Allthough I did spot the price rising as I started this post we may be looking for next years promised small profit to get a sustained move up,or other news sales-cotracts etc. In June 2000 Shares Magazine reported Reflecs Interims they said In 3yrs sales of Chromatte could be worth 10million well we have arrived and I think everything is in place for that prediction tocome true.The company has what looks to be a sucessfull division in Reflecmedia and its award winning products sale worldwide.Must be in with a chance,Cheers Zepher

Very informative, thankyou zepher.

Sue.

New shares on the block Monday,new tick up to follow?

Yes Zepher, will be interesting to see how the price reacts to the admission of the new shares on Monday onwards.

Regards,

Sue.

In Shares Magazine released on Thursday( got mine today in the post):

REFLEC (REF) -1.1P NEUTRAL

The reflective inks and coatings group saw operating losses fall by 84% and says it is currently forecasting a modest profit for the second half of the year of around 130,000. Shares jumped 17%. Sales at ReflecMedia are expected to continue to grow and it is anticipated the division will contribute to full year profits. The division has signed a number of new partners including ones in the US market. 85% of its sales are now from overseas. Reflec Evolution also performed well. Group overheads were slashed and the posts of chairman and chief executive merged. However, the company has still way to go in achieving further reductions.

Shares says: Trading is improving but still further to travel.


Sue.

Similar summary to the above given by IC yesterday Fri.Think the clue for this share to finally make a move forward is the Reflecmedia division,profit is expected from its award winning Chromatte products,therefore increasing its turnover.Disney Films is one of the major studio companies now using Chromatte and their new pre-Xmas realease is The Haunted Mansion a comedy/thriller starring Eddie Murphy,the main poster states its AMAZING SPECIAL EFFECTS,hope its another success for the wonder cloth.Release date for the film is 26th Nov Cheers Zepher.

A quiet day for trading on Monday in the new shares but did anyone notice the 11 million plus trade at the end.Buyer bought11,408,334 at 1.08 staying just under the 3% figure.

Lots of Buys recently but the price is still falling. Brought in at 1.2p now looking as a medium - long term hold, but there is plenty of upside in this share so not too worried.

Good luck to all that hold

Same opinion did well with this one back in 2000,looking forward to further progress next year with a sustained rise in the share price.
Cheers Zepher.

bought some @ 1.80 sometime ago coming to the opinion it was not money well
spent... seems this share only goes in one direction ? down