Photo-Me International plc - Trading Update
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.