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

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

Lets all hope for a better performanance in 2004,Mr Smith has sent his Xmas wish list to Santa,check it out at Reflecmedia web site.
Cheers Zepher.

Investtech Update:

Neutral (Medium term) - Dec 5, 2003
Has risen 129% since the bottom on 4 Nov 2002 at 0.42. Is within a falling trend and continued decline within the current trend is indicated. On reactions back, there is resistance against the ceiling of the trend channel. The stock has support at p 0.77 and resistance at p 1.12. The poor liquidity of the stock (traded 100% of the days, mean 2.58 mill per day) may weaken the analysis.


Sue.

years high was nearly 2p can anyone see that it the near future I cannot and still cannot understand city equities but 1m of shares ???

Hopefully a profit for the company and a rise in the share price for us, just part of hopes for 2004. Happy and prosperous New Year.Cheers Zepher.

nice move today expect city equities to flood market if get to 1.20-1.25
not confident enought to buy more and average down any views ???

Hi,

Personally I am waiting for their next set of results in February before adding more. Will see how the developments are coming along first and prospects for the future.

Neutral (Long term) - Jan 21, 2004
Has fallen 97% since the peak on 12 Jan 2000 at 38.75. Has broken through the ceiling of a falling trend channel. This indicates a slower falling rate initially, or the start of a more horizontal development. The stock is testing the resistance at p 1.10. This should give a negative reaction, but an upward breakthough of p 1.10 means a positive signal. Poor liquidity (traded 100% of the days, mean 0.96 mill per day) weakens the analysis.

Neutral (Short term) - Jan 21, 2004
Has risen 40% since the bottom on 10 Dec 2003 at 0.70. Shows a weak development within a falling trend channel. A further negative development is indicated, and there is resistance against the ceiling of the trend channel. The stock is approaching the resistance at p 1.00, which may give a negative reaction. The poor liquidity of the stock (traded 100% of the days, mean 0.96 mill per day) may weaken the analysis.

Neutral (Medium term) - Jan 21, 2004
Has risen 131% since the bottom on 4 Nov 2002 at 0.42. Is within an approximate horizontal trend, which indicates further development in the same direction. The stock has support at p 0.77 and resistance at p 1.12. The poor liquidity of the stock (traded 100% of the days, mean 0.96 mill per day) may weaken the analysis.

A delayed 500,000 buy has just gone through...down as a sell on here...crap.

loafers,

With regard to denoting whether a trade is a buy or a sell, please see the disclaimer from the Trades page as shown below.

Ian

Disclaimer

All analysis on this trades page is intended only as a guide and its accuracy is not guaranteed. It should not be used for investment purposes.

It should be noted that all trade declarations made by the market do not include a buy or sell indicator and therefore we have to derive this information ourselves. The policy we have adopted is based on the mid price of the stock at the time of the declaration. For example, a trade declared at a price that is higher than the mid price at the time of declaration would be put in the buy column, a trade lower than the mid price would be put in the sell column. A trade which matches the mid price would be considered unknown. Please also note that the market can delay declaration of the trades for up to an hour in which case we will not make any assumptions and place that trade in the 'unknown' column. Please also note that many investors are able to buy and sell within the spread and also users of level 2 systems will actually be buying at the perceived sell price, these trades might therefore appear to be wrongly categorised.

its moving again today this one has a habit of big gains and then big falls
check the graph but it has a following expect city equities to get unloading
shortly which could creat a huge momentum if they find the buyers

quite tempted to average out at this level and hope to get out @ 1.5 ?

Hopefully a better year for Reflec following more positive news.Relecmedia and The Pixel Farm signed partnership to form solutions and new products in 3D tracking and Chroma Key.The first product to be launched at the NAB2004 in April which should be around the time company results show the expected small profit.