Photo-Me Intnl. - Interim Results

Results summary

 

 

Reported

At constant currency

 

Six months ended
31 Oct 2018

Six months ended
31 Oct 2017

Change

Six months ended
31 Oct 20171

Change1

Revenue

£119.8m

£122.2m

-2.0%

£121.9m

-1.7%

Underlying Revenue

£119.8m

£116.9m

+2.5%

£116.6m

+2.7%

EBITDA

£39.1m

£44.7m

-12.9%

£44.7m

-12.5%

Profit Before Tax3

£26.0m

£32.9m

-21.0%

£32.7m

-20.4%

Adjusted Profit Before Tax3

£26.7m

£29.0m

    -7.9%

£28.9m

-7.6%

Cash Generated from Operations

£36.1m

39.9m

-9.5%

 

 

Net Cash2

£32.4m

£47.1m

-31.2%

 

 

EPS (diluted)

5.33p

6.40p

-16.7%

 

 

Adjusted EPS

5.47p

5.64p

-3.0%

 

 

Interim dividend per Ordinary share

3.71p

3.71p

-

 

 

 

1 For constant currency comparatives, average rates of exchange used were £/€ 1.139 (H1 2018: 1.129), £/Yen 146.057 (H1 2018: 145.173)

2 Refer to the note 8 to the financial statements for the reconciliation of Net Cash to Cash and cash equivalents as per the financial statements

3 The breakdown of profit before tax to adjusted profit before tax is presented in the table on page 4.

Financial summary

·     Underlying revenue was up 2.5% to £119.8m, excluding the impact of restructuring Photo-Me Retail in the comparative period.

·     Adjusted profit before tax was down 7.9%, when adjusted for one-off items in H1 2018 and H1 2019.

·     The Group remains highly cash generative with £36.1 million of cash generated from operations in the period (2017: £39.9m).

·     Net cash position of £32.4 million, (2017: £47.1m) following distribution of £28.8 million to shareholders in dividend payments and £33.4 million of investments made in the last 12 months.

·     Interim dividend maintained at 3.71 pence per Ordinary share in line with stated dividend policy for 2019

Operational summary

·     Operations in Japan have recovered faster than expected, with underlying Asia operating profit up 15%, excluding the cost of restructuring operations in Japan.

·     Continued expansion of Laundry operations, with over 30% more Revolution units in operation at the period end and total revenue from Revolution up 28.5%.

·     Identification revenue growth increased 2%, reflecting further diversification of services and successful deployment of secure photo ID upload technology.

Innovation update

·     After the period end in November 2018, the first banking booths which provide front-end retail banking services to customers were launched in Paris.

Outlook

·     The Group maintains its guidance for the FY2019 and expects to report profit before tax of £44 million, net of restructuring costs in Japan and excluding any movement in the value of Max Sight Holdings.

·     The Group's ability to meet guidance will be reliant on normalised trading conditions in its key markets.

Serge Crasnianski, CEO, said:

"In the last six months, the expansion of Laundry operations and deployment of photobooth identification solutions continued in line with our plan.  Revolution Laundry units in operation and revenue from these machines were up 30.4% and 28.5% respectively in H1 2019. In additional we continue to diversify our identification business offering.

"The Board expects to meet its previously stated guidance for FY 2019, with profit before tax of £44 million, net of restructuring costs in Japan and excluding movements in the value of the Group's investment in Max Sight Holdings. The Group's ability to meet guidance remains subject to the economic environment, foreign exchange movements and consumer sentiment, which could affect performance."