Reflec has decided not to expand into the security sector.
It will continue to operate its 64%-owned security company Perseus Consulting for three months while it decides whether to sell the business or whether there are other alternatives. Reflec wants to concentrate on its reflective inks and goods business. The core businesses are trading profitably.
Reflec shares fell 2.5p to 15p, valuing the group at £1.68m.
Managing director Paul Holdcroft says that the decision to exit security was made to “protect the profitability of the group”.
It appears that trading may have deteriorated. Reflec said in its interim statement that the security business had achieved profits of £12,050 on sales of £226,438 in the six months to August 2007.
In January, Perseus appointed Robin Clifford as chief executive. He was appointed for three months and the company said it would make a decision on his permanent employment after that.
At that time Reflec’s chairman Tim Hearley said that “2008 will be an exciting year for Perseus, as we envisage a significant uptake in its service offering”.
Full year results will be published on 20 June. There will be further news at that time.
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