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Photo-Me International Plc - Interim Results 2019


Photo-Me International plc

("Photo-Me" or "the Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2019                                                                  

Continued strong Laundry performance

Photo-Me International plc (PHTM.L), the instant-service equipment group, announces its results for the six months ended 31 October 2019.

Financial summary

  • Revenue was up 3.3% to £123.9 million (up 1.8% at constant currency).
  • Underlying revenue (excluding Sempa) up 0.4% to £120.3 million (down 1.4% at constant currency).
  • EBITDA improved by 17.4% to £45.9 million. Excluding IFRS16 impact, EBITDA improved by 10.7% to £43.3 million. This reflects profit growth through laundry expansion, the acquisition of Sempa and a higher depreciation than in the prior year period.  At constant currency, EBITDA was up 8.8%.
  • Profit before tax increased by 8.8% to £28.3 million and adjusted profit before tax improved 6.7% to £28.5 million (up 5.2% at constant currency). Excluding IFRS16 impact, profit before tax increased by 9.2% to £28.4 million.
  • Net cash position of £25.2 million (H1 2019: £32.4 million), following the distribution of £31.9 million to shareholders in dividend payments, £29.3 million in investments and the £10.2 million net cash consideration relating to the acquisition of Sempa.   
  • Interim dividend maintained at 3.71 pence per Ordinary share, in line with the stated dividend policy (H1 2019: 3.71 pence per Ordinary share).

Operational summary

  • Continued focus on Laundry expansion, with total laundry units deployed (owned, sold and as a result of acquisitions) up 9.1% and total revenue from laundry operation was up 6.9%.
  • Revenue from Revolution laundry operations increased by 25.2% and number of Revolution units in operation increased by 13.8%.  Revolution now accounts for 6.3% of the total Group vending estate (H1 2019: 5.0%).
  • Excluding the UK, Identification revenue increased 0.8%. Including the UK, Identification revenue declined by 3.3% reflecting the challenging market conditions in UK.
  • Entry into the fresh fruit and vegetable juice market through the acquisition of Sempa Sarl ("Sempa") which completed in April 2019. In H1 2020, Sempa contributed £3.5 million of revenue and £1.8 million of profit before tax to the Group.  This new business area called 'KIS Food' is expected to contribute £3.2 million profit before tax in FY 2020.

Serge Crasnianski, CEO, said:

"The first half of the year saw robust performance despite a number of challenging headwinds. the Group remains focused on further expanding our Laundry market presence across a number of the core geographies in which we operate and across our product offering, from 24/7 self-service machines and laundrettes to B2B laundry services. Our Identification business remains resilient and looking ahead, we expect to benefit from the introduction of mandatory renewal for ID cards in France from 2021 onwards. Our entry into the food market earlier in the year also provides the Group with a new additional platform for growth and will become an important component of our future growth strategy.

"The Group remains highly cash generative with £41.1 million of cash generated during the period, reflecting EBITDA margin improvement. The Board remains confident that the Group will continue to perform in line with market expectations for the current financial year."

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.