Photo-Me Relies on Photokiosk

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• Net cash of £2.6m at 31 October 2009 compares with net debt on continuing activities of £26.1m at 30 April 2009 - a £28.7m improvement
• EBITDA* £27.2m - 23.1% of revenue, a high percentage (2008: £24.0m, 22.2%)
• Revenue* up 9% at £117.7m (2008: £108.1m) or, at 2008 exchange rates, down 2% at £106.3m
• Pre-tax profit* up 72% to £11.2m (2008: £6.5m) or, at 2008 exchange rates, up 52% at £9.9m. 2008's pre-tax profit included £2.5m of exchange gain on inter-company balances which was not repeated in the current period
• Reported pre-tax profit on continuing operations increased by 208% to £9.0m (2008: £2.9m)
• Dividend payment resumed with an interim dividend of 0.25p per share

Commenting on the result, Hugo Swire, Chairman, stated, "The half year to 31 October 2009 was characterised principally by the £28.7m net cash inflow which resulted in net cash balances at the period end. Additionally, profit increased substantially, in market conditions which remained extremely difficult."
 
With regard to the outlook for the future, Mr Swire added "The second half is expected to benefit from recent improvements in the day-to-day management of the Group and from initial volume sales of the Photobook Maker. However, the second half historically tends to be much the weaker of the two, in particular for Operations, and market conditions remain extremely difficult. Accordingly, the Board is hopeful, rather than confident, that the second half will be profitable.
 
“Future anticipated sales of the Photobook Maker, together with the strategic focus involving the deployment of low cost innovative devices in the main territories, are expected to regain market share and improve takings in the coming years."
 
Photo-Me has recently announced the installation of its Photobook Maker at the retailer Snappy Snaps in Leeds and in Boots stores in the UK.