12th Sep 2014 07:14
LONDON (Alliance News) - Photo-Me International PLC said Friday that it remains confident for its full-year outlook as the business trades in line with expectations, but warned that the relative strength of sterling has continued to have a negative effect on its results.
In an interim management statement for the period from May 1 to date, the instant service entertainment group said that momentum seen in the business last year has continued into the new financial year, generating an increase in profitability in the year to date, in line with the group's expectations.
On a geographical basis, the company said profitability improved in all three of its regions, with an outstanding performance in Asia, where profits increased by approximately 50%, and very good growth of over 15% in both the UK & Ireland and Europe.
At constant rates of exchange, Photo-Me said profits were up by around 25% on a small improvement in turnover during the period. However, the relative strength of sterling against the euro and yen continued to have a negative effect, reducing group results by around 5% on turnover and profits, said the company.
Photo-Me's photobooth business performed well during the period and the company said it has made further progress in the expansion of its laundry business. The manufacturing facility in Hungary is also working well, said Photo-Me, and the expected increase in production remains on schedule.
In its two main countries to date - France and Belgium - the group said it has continued to see revenue increase for laundry machines sited for at least one year and results from the newly launched countries have been "promising," adding that its order book remains strong.
Photo-Me said its net cash position - after the payment in May of the previously announced special dividend and the company's interim dividend, which together totalled GBP14 million, as well as ongoing investment in the laundry business - remains very strong at more than GBP55 million, in line with the position recorded at the same stage last year.
"The Group has begun the year very well and remains confident for the outlook for the full year," said the company in a statement.
The company said that it will provide a further trading and outlook update at the time of its annual general meeting on October 23, 2014.
Shares in the company were trading 1.87% higher at 136.00 pence per share shortly after the market open Friday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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