Reflective coatings and security business Reflec generated post-consolidation earnings per share of more than 2p last year.
The earnings per share figure is confusing because the statutory profit and loss account states that earnings per share are 0.0403p but that is because the 50-for-one share consolidation happened after the February 2007 year end.
The underlying operations increased profits but this was partly offset by the set up costs of the security analysis systems business and the £75,000 loss on the sale of 50% of Reflec’s US business. That meant that there was a reduction in reported pre-tax profit from £235,000 to £102,000, although it was higher at £315,000 if the security and disposal losses are excluded.
R&D spending of £339,000 on security scanning and analysis systems business Perseus has been capitalised. Security will be the focus of expansion from now on. Reflec is looking to make acquisitions to grow the business. It is also considering joint ventures. It has signed a Memorandum of Understanding with Serco, which covers further development of the risk and analysis system.
Reflec is cautious about trading at the powder processing operations but Perseus should, hopefully, move into profit this year.
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