Computer group Reflex has announced a pre-tax loss of £1.03 million in 1997, mainly because of the losses associated with the decision to close its Hands On Internet Cafe in Britain. The decision to close the operation was taken because it was not generating the planned levels of turnover at a sufficient rate to cover operating costs and the significant start-up costs incurred. Reflex incurred a loss of £896,000 in closing the operation.

However, the Reflex chairman, Mr Tony Kilduff, said the group's core business continued to trade profitably. The board plans to seek other profitable ventures in the information technology field.