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

LONDON (AFX) - Reflec PLC posted wider interim losses but said the second
half should be stronger.
For the six months to Aug 31, 2004, the company recorded a pretax loss of
286,000 stg against a loss of 175,000 stg a year earlier on sales of 1.3 mln
stg, down from 1.47 mln last time.
bam

still waiting for some good news ??