Photo-me increases its 2015 full year dividend by 30%

DividendMax Ltd.

Photo-me increases its 2015 full year dividend by 30%

For the first time in five years, Revenue  is  up 0.9% at CC but 5% lower at £177.2m as reported

Underlying EBITDA 8.4% higher (+15.7% at CC) and margin increased to 29.2%

Underlying Pre-tax Profit of £35 million, up 16.3% (+24.6% at CC)

Net cash generated from operating activities of £40.1m, up 12.3% from £35.7m

Net cash position maintained at over £60 million

Increase of 30% in the annual dividend to 4.88 pence per share

Enhanced dividend programme announced for the next three years

John Lewis, Non-executive Chairman, said:

"The Group has once again delivered a strong performance with a 16% increase in pre-tax profits. This result would have been even stronger, at +25%, were it not for the continued strength of sterling against both the euro and yen.

"Cash generation remained strong and we maintained our net cash balance in excess of £60 million despite capex and dividend payments totalling approximately £40 million during the year. We are recommending a final dividend of 2.54 pence per share to give a total dividend for the year of 4.88 pence per share, an increase of 30% over the previous year and in line with the undertaking that we gave last year.

"We continued to expand our photobooth estate while the roll-out of our Revolution laundry product remains on track. Prospects for both products remain extremely positive; a new Japanese ID card is expected to boost demand for photos significantly in that market from 2016 while the order book for Revolution remains very strong - the Group now plans to have 6,000 units in operation in Europe by 2020 and is looking for opportunities in Asia and the USA.

"Looking ahead, the Group's Treasury function keeps FX under continual review, although the continued strengthening of sterling against the euro and the yen, which may have an adverse effect in the coming year, remains a challenge. Importantly, however, the operational performance of the business remains very good. Subject to the risks and uncertainties detailed in the Strategic Report, the Board anticipates another year of strong underlying progress."

Dividends

Reflecting the confidence we had in the outlook for 2014/15, last year we stated that we intended to increase the annual dividend by 30%. We are therefore pleased to confirm that the proposed total annual dividend will rise from 3.75 pence (2013/14) to 4.88 pence in line with our commitment.

The business is well positioned for growth and our net cash position remains healthy. Having raised dividends substantially in recent years - and with the desire to retain a progressive dividend policy - we have now decided to adopt an enhanced dividend policy for the next three years.  We therefore intend to increase the ordinary dividend by 10% p.a. and any net cash on the balance sheet at 30 April 2016 (and the following two years) in excess of £50m will be available to shareholders as a special dividend in line with the new policy.

If approved at the Annual General Meeting on 21 October 2015, the final dividend will be paid on 12 November 2015 to shareholders on the register at the close of business on 9 October 2015. The ex-dividend date will be 8 October 2015.

Companies mentioned