Interim Management Statement

RNS Number : 6368O

Photo-Me International PLC

11 March 2009

 



Wednesday 11 March 2009

PHOTO-ME INTERNATIONAL PLC

INTERIM MANAGEMENT STATEMENT / FUTURE BOARD CHANGE 

Interim Management Statement

Photo-Me (PHTM.L), the instant service equipment group, announces its Interim Management Statement, which covers the period from 1 November 2008 to 10 March 2009, as required by the UK Listing Authority's Disclosure and Transparency Rules.

Photo-Me is a seasonal business. Historically, the third quarter of the financial year, covering the months of November to January, is the weakest of the four and, as expected, the Group incurred a pre-tax loss for the quarter.  Notwithstanding, EBITDA for the nine months to 31 January 2009 made a further material advance over the £23.6m reported for the half year to 31 October 2008 and, in the nine months, net debt reduced by over one- third, to £30.0m from £45.5m, and gearing reduced to 33% from 57%.  The appreciation of the Euro and the Yen against Sterling over the first nine months resulted in an increase of more than £10m in total shareholders' equity, to £87.9m, or 24p per share, at 31 January 2009.  

There has been no material change in the Board's expectations of the result for the year to 30 April 2009 since the Trading Statement of 3 February 2009.

For the nine months to 31 January 2009, unaudited management accounts indicate that total revenue on continuing businesses was up 9% at £168.0m (2008: £154.1m) or, at constant exchange rates, down 5% at £146.5m.  

Revenue for the Group's much larger Division - Operations (previously 'Vending') - increased by 12% to £123.1m or, at constant exchange rates, reduced by 2% to £107.7m.  Revenue, in local currency, decreased by 7% in the UK and the Republic of Ireland, where the slowdown in consumer spending has been felt most significantly, but increased slightly in both France and Japan.  For the nine months to 31 January 2009, Operations made a substantial pre-tax profit.  Encouraging progress has been made in France in protecting the Group's ID photography business from the threat posed by on-site photography in connection with the centralisation of biometric data. 

Revenue for Sales & Servicing increased by 1% to £44.9m; at constant exchange rates, it reduced by 13% to £38.8m. For the nine months to 31 January 2009, Sales & Servicing made a substantial pre-tax loss, reflecting the extreme difficulties experienced by customers globally in accessing financing, as well as a change of sales mix.  The Group's self-service Photobook Maker was enthusiastically received at the Photo Marketing Association trade fair in Las Vegas earlier this month, with several of the world's leading retail chains agreeing to trial the machine.

Future Board Change

The Company has received six months' notice of the resignation of Thierry Barel, CEO since December 2007, so that he can pursue an attractive opportunity, to which he has been headhunted.  Mr Barel has accepted a senior position in a substantial publicly-listed European-based international industrial group.

Thierry Barel will remain as CEO of Photo-Me until his departure and will present the Group results for the year to 30 April 2009.

Thierry Barel said 'It has been a genuine pleasure working for the Photo-Me Group over the past two years. I believe that I will be leaving the Group in a sound state and with a clear vision for the future. I was not looking for alternative employment, but the opportunity to join, in a senior position, such a substantial company and to give greater use to my long experience as an engineer, was too great to resist. I shall make the transition as effective as possible for Photo-Me and will carry out all my functions throughout this period. I will, in particular, make myself available to assist in the recruitment of my successor.'

Hugo Swire, Chairman, said 'Thierry is doing an excellent job for Photo-Me and we will be sorry to lose him. His departure, however, will provide us with the opportunity to recruit someone who has extensive experience of retailing and marketing, which is how the role of CEO at Photo-Me is increasingly developing, in line with Photo-Me's strategy.'  

Enquiries:

Photo-Me International plc                          01372-453 399

Hugo Swire (Chairman)

Thierry Barel (CEO)

Bankside Consultants                                  020-7367 8851

Charles Ponsonby

 

END

 

 

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