LONDON (Alliance News) - Photo-Me International PLC Friday said its board has approved the return of about GBP7.5 million to its shareholders through a two pence a share special dividend.
The provider of photobooths, laundry machines, digital printing kiosks, amusement machines and business service equipment had flagged a potential payout back in December when it revealed that it had GBP67.8 million in net cash at the end of October.
At that time Photo-Me also said it expected to be able to increase the ordinary dividend by a further 20% a year during the current financial year as well as in 2014/15 and 2015/16.
The company also said Friday that it will ramp up production of its Revolution laundry machine this year after a third-party manufacturing facility in Hungary came fully on-line at the end of January. It expects production volumes to be about 25 units in February and March, increasing to about 50 a month, with an eventual target of about 100 by the end of calendar 2014.
It is moving manufacturing of the Revolution to Hungary from France to cut production costs.
"We are delighted to be able to again reward our shareholders with a special dividend this year as a result of the company's strong cash position. We remain enthused about the outlook for 'Revolution' and accelerating our investment in this product seems to us the best approach to take to increase future returns for our shareholders," Photo-Me Chief Executive Serge Crasnianski said in a statement.
"It is therefore very pleasing to complete the manufacturing relocation on schedule. There is considerable demand for the 'Revolution' product and the higher manufacturing capability will enable us to fulfil our ambitious roll-out plans," he added.
Photo-Me shares were up 3.8% at 149.25 pence Friday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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