Financial Highlights
Turnover returned to growth of 0.9% on a constant currency basis.
Underlying pre-tax profits up 10% to a record £25.3m; up 17.3% in constant currency.
Underlying turnover and pretax growth restrained by a further decline in minilab business - effect expected to be much smaller going forward.
Net cash position of £64.7 million, despite increased capex and combined tax and dividend payments of £14.5m (net of sale of land).
Interim dividend increased by 30% to 2.34p in line with the Group's commitment.
Operational highlights
Photobooth estate growth of 5.2% year-on-year, with growth above 5% in all major operating territories.
744 Revolution laundry units deployed at end-October - 374 retained operating units performing well.
Laundry manufacturing expansion remains on track.
Promising new product pipeline including new digital printing kiosk and supermarket carwash.
John Lewis, Non-executive Chairman, said:
"Against a global economic background which remains uncertain, and despite large adverse movements in our major trading currencies, the Group has produced another very strong performance and delivered another record profit.
Significantly, after a number of years of declining turnover due to the rapid downturn of the minilab business, this half-year saw a return to underlying top-line growth. This was principally due to a 5% expansion in photobooth numbers and also our still small - but rapidly growing - laundry business, which at the half-year comprised some 3% of Group turnover.
Our profits once again moved ahead strongly. Our estate enjoys high operational gearing and as previously described, we have made good progress on costs especially in reducing significantly the manufacturing costs of both our photobooths and laundry units, by outsourcing to China and Hungary respectively.
Our cash generation remains a key strength and the net cash position at the end of October 2014 was £64.7 million, an increase of some £1.6 million since the end of April 2014 after financing (net of sale of land) tax and dividends of £14.5million and increased capital expenditure. We are therefore increasing the interim dividend by 30%, in line with the commitment that we made at the time of our preliminary results.
The momentum in the business is good and it is performing very much in line with the Board's expectations. The Board remains confident for the outlook of the business over the rest of the year and remains optimistic about future prospects especially in relation to the opportunities for our laundry business supported by our new product development."
