26th Jun 2014 12:04
LONDON (Alliance News) - Photobooth operator Photo-Me International PLC Thursday reported higher profits and raised its dividend for its last financial year, as lower costs in the business more than offset a fall in revenues.
The Surrey-based company posted a pretax profit of GBP30.1 million for the year to April 30, up from GBP24.3 million the prior year, despite a 4.6% decline in revenues to GBP186.6 million, down from GBP195.6 million a year earlier. It said revenues fell largely due to the decline of minilab-related sales and a big hit from exchange rate movements.
"Sales and servicing revenue declined substantially as we expected but lower costs plus profits of GBP1.3 million from sales of Revolution units meant a return to healthy profits," said Non-Executive Chairman John Lewis in a statement.
Photo-Me increased its dividend for the year by 25% to 3.75 pence, and gave a confident outlook for the year ahead in which it said it expects to make "further significant progress."
"We previously stated our intent to increase the ordinary dividend by 20% this year but the business' performance, outlook and balance sheet strength justify a higher level," said Lewis.
The company said photobooth numbers rose a healthy 5.1% over the year, and said it expects to be able to continue to expand the estate, which it said is benefiting from the introduction of the Starck booths and the relocation of production to China.
"We remain on track to have 2,000 units in the field by the end of December 2015. Thus the group's two core products are both in excellent shape and well positioned for further growth," Lewis added.
Photo-Me shares were trading 0.8% lower Thursday afternoon at 136.88 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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