PHTM.L Regulatory News (PHTM)

2 Mar 2007 07:30

Photo-Me International PLC02 March 2007 Friday 2 March 2007 PHOTO-ME INTERNATIONAL PLC TRADING STATEMENT / STRATEGIC REVIEW UPDATE Trading Statement At the Board meeting yesterday of PMI (PHTM.L), the digital imaging company, theconsolidated management accounts for the three quarters to 31 January 2007 wereproduced to, and reviewed by, the Board and the prospects for the year to 30April 2007 were discussed. Although turnover for the three quarters to 31January 2007 is broadly in line with the Board's expectations at the time of theInterim Announcement of 18 December 2006, following a disappointing January, theprofit was below the Board's expectations. In addition, prospects for the fourthquarter have deteriorated. Accordingly, the Board now believes that the pre-taxprofit for the year to 30 April 2007 will be very substantially below itsprevious expectations. By far the most significant part of the shortfall is in minilab Manufacturing,which is now expected to make a much reduced profit. This reflects an expectedsales shortfall of some 450 units relative to the Board's expectations, as theBoard has now discounted the winning, for delivery in the current financialyear, of a further large contract and expects to make reduced sales generally inminilab Manufacturing as a result of difficult market conditions. The only othersignificant contributor to the shortfall is a one-off projected loss on sale ofDeith, PMI's amusement and gaming machine 60% owned subsidiary, now that adecision has been taken for its sale. Vending continues to trade solidly and Imaging Solutions, PMI's wholesale labmanufacturing business, continues to trade successfully. Therefore, the Boardremains confident of the future of Vending and wholesale lab Manufacturing, asit is also of its ability to return minilab Manufacturing to prosperity. Update on Strategic Review The Board remains committed to a substantial return of capital to shareholders.The technicalities of this are complex and a corporate reorganisation will berequired. The Strategic Review process continues actively, with the assistanceof JPMorgan Cazenove and Lazard, and shareholders will be updated in due course. Enquiries: Photo-Me International 01372-453 399Vernon Sankey (Chairman)Serge Crasnianski (CEO)Jean-Luc Peurois (GFD) Bankside ConsultantsCharles Ponsonby 020-7367 8851 / 07789-202 312 This information is provided by RNS The company news service from the London Stock Exchange