PHTM.L Regulatory News (PHTM)

12 Sep 2008 07:00



Friday 12 September 2008

PHOTO-ME INTERNATIONAL PLC

Interim Management Statement 

Photo-Me (PHTM.L), the instant service equipment group, announces its Interim Management Statement, which covers the period from 1 May to 11 September 2008, as required by the UK Listing Authority's Disclosure and Transparency Rules. 

Photo-Me is a seasonal business. Historically, the first quarter, covering the period from 1 May to 31 July, contributes an insubstantial amount to annual profit. Trading was encouraging in May and June, but disappointing in July. This resulted in revenue (which increased slightly in constant currency terms) and profit for the quarter being in line with management's expectations.  Net debt at the end of the quarter amounted to £45.1m. This compares with £45.5m at 30 April 2008 and £38.0m at 31 July 2007. 

Progress is being made in implementing the new strategy announced in July. Additional digital printing kiosks and amusement machines have been sited, structures are being streamlined and a cost reduction programme across the Group has commenced. A number of innovative vending concepts are being field tested or are under development.

In addition, as previously announced, Photo-Me sold its vending business in the USA, a market which had historically proven to be difficult for the Group. Consideration for the USA business was nominal but gave rise to an exceptional profit on sale of £0.9m. The USA remains an important market for Photo-Me's equipment sales. 

Having regard to the depressed economic conditions in the Group's principal markets, the Board believes that it is prudent to adopt a cautious outlook with regard to prospects. However, the Board continues to aim to achieve, at least, stability in the current year relative to last year's adjusted† result. Furthermore, the Board expects to achieve a significant reduction in net debt by 30 April 2009.

The Board proposes to provide a further update on trading and outlook at the Company's AGM, which will be held on 29 October 2008. 

†continuing operations, excluding exceptional items and accelerated depreciation and amortisation.

Notes for Editors: 

Photo-Me operates, sells and services instant service equipment, both within and, increasingly, outside of its historic photographic specialism.

Photo-Me has approximately 43,000 vending locations worldwide. It is the world's leading operator of photo booths, with approximately 21,500 sited, and operates a diverse range of vending equipment, including digital printing kiosks, children's rides, photocopiers and card printing machines. 

Photo-Me manufactures, mainly through sub-contractors in low-cost territories, a unique and complete range of photo-processing equipment, covering all market segments. 

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