Operational Highlights
Pre-tax profit up 17.4% (25.9% in CC) despite revenue decline of 7.1% (2.1% in CC)
All 3 geographic regions increased profits; individually, Germany, Switzerland and Japan outstanding
Sales and Servicing division returned to profitability
Formal launch of new coin-operated laundry machines; strong growth anticipated
Net cash position of £70 million, an increase of £18.2 million since year end
Interim dividend increased by 20% to 1.5 pence per share
Board to consider additional returns to shareholders
The above-mentioned figures include a profit of £2.4 million on the sale of a property in France and additional stock provision of £1.9 million.
John Lewis, Non-Executive Chairman, said; "The Group has again traded well in what is traditionally its stronger half and delivered a record result, despite a currency headwind. A growing estate, tighter management and lower costs have all contributed to this with notable improvements in Germany, Switzerland and Japan and another very good performance in our largest market, France. In addition it is pleasing to report that the Sales and Servicing (S&S) division, whilst smaller than it was, has returned to profitability after an extended period of restructuring.
"One of Photo-Me's great strengths is innovation. After almost three years of testing and trialling in France and Belgium, our new laundry product is ready to be aggressively rolled out. If the results achieved to date are repeated on a much larger scale, we anticipate this product will become a significant contributor to profits within three years.
"We continued to generate significant levels of cash in the period and the net cash position at the end of October was £70 million, an increase of £18 million since the end of April. We are therefore increasing the interim dividend by 20% and, during the second half of the year, the Board will be considering the options for returning some of this cash to shareholders.
"As we always point out, the first half is seasonally the stronger for Photo-Me in terms of profits and we expect this certainly to be the case again. However, the Board remains confident of good progress over the year given that the level of profits in the first half broadly matched the outturn for the whole of the previous year."
Dividends
As a result of the Group's strong financial performance, with a continued high rate of conversion of profits into cash, the Board is recommending an interim dividend of 1.5 pence, an increase of 20% over the interim dividend of 1.25 pence paid last year.
The interim dividend will be paid on 7 May 2013 to shareholders on the register on 2 April 2013, with an ex-dividend date of 27 March 2013.
