3 Apr 2019 07:00
03 April 2019
Photo-Me International plc
("Photo-Me" or "the Group")
Trading Update
Photo-Me (PHTM.L), the instant-service equipment group, announces the following trading update for the year ending 30 April 2019.
In the year to date, the Group has continued to deliver on its strategy to expand its high margin self-service laundry operations and these operations will continue to make up an increasing proportion of the Group's total revenue in the medium term. The Group's operations in Continental Europe and Asia are continuing to grow in line with our expectations. The strong performance in Japan has continued in the second half, following the reorganisation of these operations.
Overall trading in the UK has become more challenging than expected in the second half of the year reflecting the slowdown in consumer activity as a result of continuing uncertainty around the UK's European Union exit negotiations. At the time of its interim results in December 2018, the Group noted that it had experienced a delay in order decisions for its B2B machines revenue, which were expected to be recovered during the second half of the year. Due to the extended period of uncertainty in the UK, the Group now does not expect to achieve a recovery in order levels before the end of the current financial year.
As a result, the Board now believes that profit before tax, net of restructuring costs in Japan, for the financial year ending 30 April 2019 will be slightly below its previous guidance of £44m, with profit before tax now expected to be at least £42 million, net of restructuring costs in Japan. This excludes any potential revaluation movements pertaining to the Group's investment in Max Sight Group Holdings.
The Group expects to announce its Annual Results for the financial year ending 30 April 2019 on Tuesday 9 July 2019.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
Photo-Me International plc | +44 (0) 1372 453 399 / ir@photo-me.co.uk |
Serge Crasnianski, CEO |
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Stéphane Gibon, CFO |
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Hudson Sandler | +44 (0) 20 7796 4133 |
Wendy Baker/ Emily Dillon/ Nick Moore | photo-me@hudsonsandler.com |
NOTES TO EDITORS
Photo-Me International plc (LSE: PHTM) operates, sells and services a wide range of instant-service vending equipment, primarily aimed at the consumer market.
The Group operates approximately 47,000 vending units across 18 countries and its technological innovation is focused on three principal areas:
· Identification: photobooths and integrated biometric identification solutions
· Laundry: unattended laundry services, launderettes, B2B services
· Kiosks: high-quality digital printing
In addition, the Group operates vending equipment such as children's rides, amusement machines and business service equipment.
Whilst the Group both sells and services this equipment, the vast majority of units are operated and maintained by Photo-Me. Photo-Me pays the site owner a commission based on turnover, which varies depending on the country and location of the machine.
The Group has built long-term relationships with major site owners and its equipment is generally sited in prime locations in areas of high footfall such as supermarkets, shopping malls (indoors and outdoors) and public transport venues. The equipment is maintained and serviced by an established network of 700 field engineers.
The Company's shares have been listed on the London Stock Exchange since 1962.