Reflex, the computer group, has continued with the steady recovery established in the first half of the year. Preliminary results show an operating profit of £371,000 in continuing operations, contrasting with the loss of £95,000 in 1994.

Reflex, however, suffered from an exceptional loss of £365,000 on the disposal of subsidiaries. It has also written off goodwill of £1,161,000 associated with its subsidiaries, which are considered to have suffered a permanent diminution in value. These resulted in a pre tax loss of £1,029,000.

However, the goodwill had no cash flow implications and was already in the balance sheet. Net assets actually improved from £154,000 to £775,000. Page 2