12th Sep 2013 10:26
LONDON (Alliance News) - Photo-Me International PLC Thursday said its profits are running over 10% ahead of the same period last year as it expected, even though revenues are slightly down on the same time last year as its Japanese revenues are being hit by the depreciation of the yen and it earns less from sales and servicing.
The company, which operates photo booths across the world and is branching out after developing a self-service laundry machine, said the profit rise was being driven by its Photomaton unit in France which recently launched the laundry business.
It said its European business as a whole was also benefitting from a 7.5% increase in photo booths, including the rollout of the higher margin Starck photobooth, which allows users to upload photos to Facebook, Picasa, Flickr and email.
In a trading statement, Photo-Me said UK profits were little changed on the year, while Asian profitability is down about 15% in sterling terms but up about 10% in local currency terms. Its Japanese revenues in sterling terms are being hurt by the sharp slide in the yen against the pound.
Revenues at its small Chinese operations are up about 30%, and the business is only making a small loss because it's investing in new photo booths and research and development for the Chinese market.
It said its fledgling laundry business was starting to expand and had added 52 machines in the three months to end July, resulting in a profit of more than GBP500,000. It said it is making average earnings before interest, tax, depreciation and amortization of over 50% of revenue on each laundry unit.
"The group is anticipating an increasing contribution as the expansion of the division progresses, and as it reduces the cost of manufacture in future by increased sourcing from Eastern Europe," it said.
Photo-Me said that its overall net cash position had little changed since the end of the last financial year, despite the investments in photo booths and laundry units and the payment of the interim dividend in May.
"Overall, the group has begun the year well and remains confident for the balance of the year, given the success in the group's laundry division to date and the planned expansion of this business, combined with growth in the Starck booth estate and lower anticipated photobooth manufacturing costs when outsourcing production to China in January 2014," it said.
Photo-Me shares were down 2.6% at 98.418 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
PHTM.L