Shake-up as Reflec shares plunge
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Investors in Reflec, the reflective inks group, took fright yesterday sending the shares plunging nearly 70 per cent to 9.5p as it warned that sales of new products continued to disappoint and raised the spectre of a US legal battle after one of its products allegedly infringed a patent.
Reflec also announced a management shake-up, after a dreadful share price performance angered institutional shareholders. Harold Morley is stepping down as non-executive chairman, to be replaced by Alan Edwards, a partner with accountants Neville Russell. Peter White, Reflec's managing director, has been promoted to chief executive. However, despite Reflec's problems, Peter White was unavailable to answer mounting concerns about the group's future yesterday, having flown to America for his Christmas holidays.
The new board has also appointed accountants Arthur Anderson to assess its financial plight and determine whether it needs to raise more funds.
Floated in April 1996 at 40p, Reflec's shares rose to more than 130p earlier this year before its dramatic fall from grace.
Adam Hart, of Peel Hunt, the company's brokers and sponsors of the flotation, said: "This is a disappointment. Small companies are high risk and until products produce profits they always remain so."
Reflec's flotation document forecast the group making an operating profit in the year to February 1998 but Mr Hart admitted it would not meet this target and refused to predict when it would break into the black.
- Andrew Yates
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments