Financial Highlights
First half results ahead of the Board's expectations
Revenue growth of 19.2% (up 4.0% at constant currency), driven primarily by the rollout of our laundry product, Revolution
Pre-tax profits increased by 20.2% to £31.0m; (up 4.3% at constant currency)
Net cash position remains very strong at £68.0m, £5.6m higher than at 30 April 2016, after investments, including the acquisition of Asda's photo division, and substantially higher dividend payments
Interim dividend increased by 20%, in line with guidance
Operational Highlights
Investments and new products reinforcing growth momentum
Acquisition of the UK photo division of Asda Stores Limited completed
Investment in technology upgrades in French Photobooth estate following ANTS (Agence Nationale des Titres Sécurisés linked to the French Ministry of Transport) contract
Memorandum of Understanding agreed with Ministry of Foreign Affairs and Trade in the Republic of Ireland for photobooth secure online passport applications
New launderette shops producing good returns
Production of reduced footprint "Revolution 2" laundry units now underway and expected to accelerate laundry roll-out
John Lewis, Non-executive Chairman, said:
"Photo-Me has made excellent progress in the first half with strong growth in revenues and profits reflecting the success of our strategy of investing in new products, the acceleration in the growth of our laundry business and currency benefit.
We are strongly positioned to be a leader in security based operations. During the first half we focused on technology upgrades to our photobooth estate in France that allow digitised photos and e-signatures for driving licenses to be securely uploaded. The expansion of our laundry business continues to drive our growth and the introduction of our smaller Revolution units are expected to help maintain that progress.
Our cash flow and net cash position both remain extremely strong after investments and the interim ordinary dividend has increased by 20% in line with previous guidance.
The Group's performance for the first half was ahead of the Board expectations and the Board therefore now expects the Group's profits will significantly exceed current market expectations for the financial period ending 30 April 2017. The Board continues to be optimistic about the Group's future prospects."
