AGM and Interim Management Statement
Strong start to the financial period
Photo-Me (PHTM.L), the instant service equipment group, is today issuing its Interim Management Statement, which covers the period from 1 May 2012 to date. This statement coincides with Photo-Me's AGM which takes place at 12.00 noon today.
The Group is pleased to report that the year has started strongly, despite an adverse movement of some 10 per cent. in the £/€ exchange rate compared to the same period last year. Revenue in the Operations division has remained stable at constant exchange rates; however, revenue has continued to decline in the Sales & Servicing division. Regardless of the impact of exchange rates, profits for the Group have again improved in the financial period to date thanks to solid performances across the major geographic markets of the Operations division, as anticipated.
Profit before tax for the first quarter to the end of July 2012 was almost one-quarter higher than the same period last year (or one-third higher on a constant currency basis). The strong performance in the Operations division has more than offset the continued weakness in Sales & Servicing, which we believe is due to the economic climate restraining capital expenditure by potential customers. The Sales & Servicing division is now becoming an increasingly marginal part of the Group's business (contributing less than 12% of total revenues)
There has been a substantial improvement in both revenues and profit in Germany, where the photobooth estate is being expanded. France and Japan provided steady performances with the former aided by the continued rollout of the new Photobooth by Starck. UK performance was helped by cost cutting and lower depreciation. In the Operations division, all the subsidiaries are now profitable.
The Group's net cash position has further improved in spite of the payment of the interim dividend in May 2012. As in previous years the Group's performance to date should not be taken as a guide for the year as a whole, because the Group generally enjoys much stronger trading in the first half compared to the second half, owing to the seasonality of the Operations division. In addition, the trading background in many markets - including the UK - remains difficult due to the global economic backdrop.
The Board will provide a further update on trading and outlook at the time of the Company's Interim announcement in December 2012.
