Data procession group Reflex warned yesterday that pre-tax profits to the end of June 2001 will be materially behind budget and behind its results for the first six months in 2000.

Although he declined to reveal a figure, Reflex chairman Mr Tony Kilduff said the pre-tax profits for the first six months would be "substantially down" on the figure of £206,000 for the same period last year.

He cited a slowdown in trading in the technology and rental markets as the reason for the decline.

Under stock exchange rules, Reflex Group, which has reached an agreement to sell its subsidiary First Rental Ltd to a management buyout team, was obliged to issue a statement if its results were materially different.

But Mr Kilduff said that the statement would have no effect on the management buyout.