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Photo-Me International PLC on Monday reported a swing to profit for its recently ended financial year, due to the easing of Covid-19 restrictions allowing for a progressive recovery in demand for vending services in key markets.
Shares in Photo-Me were 6.2% higher at 68.20 pence on Monday morning in London.
For the year ended October 31, the Epsom, Surrey-based operator of instant-service equipment posted a pretax profit of £28.6 million, compared to a loss of £27.8 million the year before. The figure however fell short of pre-virus levels, with the 2019 financial year's profit coming in at £44.9 million.
Revenue, meanwhile, grew 15% to £214.4 million from £186.3 million, marking double digit growth from the Photobooth and Revolution businesses.
Photo-Me noted that its pretax profit and revenue result for the year were at the upper end of expectations
As well as an increase in photobooth activity and a strong performance from its laundry operations, Photo-Me also benefited from the completion of its restructuring programme, which saw the removal of unprofitable machines from its estate.
Photo-Me declared a dividend of 2.89 pence per share, after declaring none for the year before.
Looking ahead, the group said it has enough financial resources to deal with any economic risks over the next five years, noting a recovery in activity in most territories except for Asia which remains heavily under restrictions.
Photo-Me said it is confident that it will climb closer towards its pre-virus levels as the pandemic subsides.
‘Despite the ongoing impact of COVID-19, our proven and resilient business model has enabled the group to make progress towards returning to its pre-pandemic performance, across all business areas including photobooths. This progress was underpinned by our market leading position, our established and long-term partnerships which gives the group good revenue visibility and year-on-year recurring revenue streams,’ said Deputy Chair and CEO Serge Crasnianski.
The group made no mention of the failed takeover bid by Tibergest Pte Ltd, which lapsed due to satisfying the acceptance condition on time, of gaining at least 50%.
In mid-January, Tibergest agreed to buy 29.1 million Photo-Me shares from the Dan David Foundation, taking its total holding to 138.0 million shares, or a 37% stake, triggering a mandatory offer under UK takeover rules.
The mandatory offer was worth 75 pence per share, valuing Photo-Me's total issued share capital at £284.5 million.
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