Preliminary Results

ME Group International PLC
22 February 2024
 

 


 

22 February 2024

ME GROUP INTERNATIONAL PLC

("Me Group" or "the Group" or "the Company")

 

Preliminary results for the 12 months ended 31 October 2023

 

A year of record financial performance

 

ME Group International plc (LSE: MEGP), the instant-service equipment group, announces its unaudited preliminary results for the 12 months ended 31 October 2023 ("FY 2023" or the "Period").

 

KEY FINANCIALS

 

12 months ended
31 October 2023

12 months ended
31 October 2022

Change

Revenue

£297.7m

£259.8m

+14.6%

EBITDA1

£106.6m

£92.2m

+15.6%

Profit before tax

£67.1m

£53.4m

+25.7%

Profit after tax

£50.7m

£38.8m

+30.7%

Cash generated from operations

£103.7m

£87.9m

+18.0%

Gross cash

£111.1m

£136.2m

+18.4%

Net cash2

£33.9m

£34.0m

+0.3%

Earnings per share (diluted)

13.31p

10.23p

+30.1%

Dividends:




 - Interim Dividend per ordinary share (declared)

2.97p

2.60p

n/a

 - Special Dividend per ordinary share (paid)

-

7.10p

n/a

 - Final Dividend per ordinary share (recommended)

4.42p

3.00p

n/a

Total dividend per ordinary share3/4

7.39p

12.70p

n/a

 

1   EBITDA is profit before depreciation, amortisation, other net gains / (losses) and finance cost and income.

2  Net cash excludes investments in convertible bonds (£4.7m) and lease liabilities (£13.3 million). See note 8 for details of net cash.

3  Interim Dividend paid on 23 November 2023 (£11.2 million). Recommended Final Dividend will be paid on 10 May 2024, subject to approval at the AGM

4   The total dividend per ordinary share of 12.70p in respect of FY 2022 included special dividends totalling 7.10p per share (£26.8 million).

 

 

HIGHLIGHTS

 

·    A year of record financial performance.

·    Next-generation photobooth rollout underway, modernising and digitalising photobooth estate

·    Market leader in Japan, following photobooth acquisition

·    Continued expansion of laundry operations

·    Creation of further shareholder value through dividends and share buyback programme

·    Return to the FTSE 250 Index on the London Stock Exchange

 

 

Serge Crasnianski, CEO & Deputy Chairman, commented:

 

"We are pleased to report a year of record financial performance during which we continued to make good strides in delivering on our long-term growth strategy. We have reported strong revenue and profit growth across all of our business areas and geographic regions, achieved despite the widely reported macroeconomic challenges. Our laundry operations, a key growth driver for the Group, performed particularly strongly and our expansion continued at pace. Demand for photobooth services remains robust and we continue to develop our relationships with governments and regulatory bodies for our digital and secure photo ID services.

 

"The modernisation and digitalisation of our business will drive operational efficiencies and improve the services and experience we offer.  Our next-generation photobooth is being rolled out at pace, bringing a multi-service offering and seamless user experience, backed by proprietary software. This is just one of many initiatives we are driving forward, underpinned by our strategic focus on digital innovation. We are also working on a range of additional service features and functionalities that could attract more consumers to use our instant vending equipment. 

 

"The Board looks ahead to the future with confidence and, notwithstanding changes in the macro environment, expects the Group to build on the success of FY 2023 and achieve continued revenue and earnings growth in FY 2024."

 

 

PUBLICATION OF ANNUAL REPORT AND ACCOUNTS

 

ME Group International plc will publish its annual report and accounts for the financial year ended
31 October 2023 (the "Annual Report") by 29 February 2024. The Annual Report shall be available on the Company's website at www.me-group.com.

 

The Annual Report will be posted to those shareholders who have not chosen to receive electronic communication or communication through the Company's website. 

 

A copy of the Annual Report will also be submitted to the National Storage Mechanism and will be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism   

 

ENQUIRIES:

 

ME Group International plc

+44 (0) 1372 453 399

Serge Crasnianski, CEO


Stéphane Gibon, CFO




Hudson Sandler

Wendy Baker / Nick Moore

 

+44 (0) 20 7796 4133

 me-group@hudsonsandler.com


 

NOTES TO EDITORS

 

ME Group International plc (LSE: MEGP) operates, sells and services a wide range of instant-service vending equipment, primarily aimed at the consumer market.

 

The Group operates vending units across 18 countries and its technological innovation is focused on four principal areas:

 

·      Photo.ME    - Photobooths and integrated biometric identification solutions

·      Wash.ME     - Unattended laundry services and launderettes

·      Print.ME      - High-quality digital printing kiosks

·      Feed.ME     - Vending equipment for the food service market

 

In addition, the Group operates other vending equipment such as children's rides, amusement machines, and business service equipment.

 

Whilst the Group both sells and services this equipment, the majority of units are owned, operated and maintained by the Group. The Group pays the site owner a commission based on turnover, which varies depending on the country, location and the type of machine.

 

The Group has built long-term relationships with major site owners and its equipment is generally sited in prime locations in areas of high footfall such as supermarkets, shopping malls (indoors and outdoors), transport hubs, and administration buildings (City Halls, Police etc.). Equipment is maintained and serviced by an established network of more than 650 field engineers.

 

In August 2022 the Company changed its listed entity name to ME Group International plc (previously Photo-Me International plc) to better reflect the Group's diversification focus and business strategy.

 

The Company's shares have been listed on the London Stock Exchange since 1962.

 

For further information: www.me-group.com

 

CHAIRMAN'S STATEMENT

 

2023 Overview

 

I am pleased to report that the Group delivered a record financial performance in FY 2023, with strong growth delivered against the prior year, particularly across the Group's core Photobooth and Laundry operations. This reflected the positive trading momentum achieved throughout the year with growth achieved across all of ME Group's key business areas and key territories, with activity supported by strong consumer demand for our automated services.

 

For the 12 months ended 31 October 2023, the Group delivered robust revenue growth of 14.6%, EBITDA growth of 15.6% and a 25.7% increase in profit before tax. In FY 2023, Group EBITDA also surpassed £100 million for the first time, reaching £106.6 million, with profit before tax increasing by £13.7 million to £67.1 million, reflecting the Group's focus on delivering growth profitably across its global vending estate.

 

Today, ME Group has a dominant market position in most of the markets in which it operates, with its long-term customer contracts supporting good predictability and visibility on its revenue streams. The Group's operations are highly cash-generative, with these cash flows used to fund growth through product innovation and expansion, and in turn driving value to our shareholders through growth and dividends.

 

Strategic progress

 

We have continued to make good progress against our growth strategy. Our technological innovation expertise is supporting the diversification of our product portfolio and the Group's digital transformation, as we modernise our vending estate and our organisation. This underpins our continued focus on expanding the number of units in operation and increasing the yield per unit, while reducing production and operational costs to the Group. This enables us to capitalise on the Group's operating leverage.

 

Our growth strategy is focused on five core pillars:

 

1.         Expansion into new geographic territories

2.         Entering new market segments

3.         Ongoing new product and technology innovation

4.         Continued expansion and diversification of services and revenue growth

5.         Merger & Acquisition

 

Progress was achieved across these pillars, notably with the deployment of our next generation photobooth, integrated with our newly developed proprietary software. We also cemented our presence in the Japanese photobooth market, positioning the Group as market leader in the country, following our photobooth acquisition. Further details on our progress are set out in the Chief Executive's Report.  

 

We continue to explore a plethora of potential opportunities that will help us to meet our growth ambitions and we remain confident in the Group's ability to achieve these and drive attractive levels of returns for our shareholders.

 

Entry into the FTSE 250 Index

 

In June, we were delighted to be informed that the Group   had been included as a constituent of the FTSE 250 Index, following a review by global index provider FTSE Russell. Our return to the FTSE 250 marked an important corporate milestone demonstrating the journey that the Group has been on to expand and diversify its operations through technological innovation.

 

The Board & Executive Team

 

Post period-end, on 2 November 2023, we announced that Jean-Marc Janailhac who had been an Executive Director of the Company since July 2020, would be stepping down from his executive role and replaced by Christian Autié who was appointed COO. We are delighted however that Jean-Marc continues to sit on the Board this time in his original capacity as a Non-executive Director. I would like to take this opportunity to thank him for his valuable contribution to the Company as an Executive Director and I am pleased he will continue to work closely with me and the Board in his previous role.

 

The Board of Directors continues to believe that it has a strong team in place to continue supporting the leadership team in delivering on the Group's long-term growth strategy.

 

I would like to thank my Board colleagues, the executive team, and every employee across the Group for their continued dedication, commitment, and hard work.

 

Shareholder returns and dividend

 

Share buyback

 

As a Group, we are committed to creating shareholder value wherever we can and as a Board we look to explore opportunities that reward our shareholders. In August, we announced the launch of a Share Buyback Programme to run until the Company's next Annual General Meeting. As at 31 October 2023 the Company held 1,260,534 shares, with an average value of 156p per share, at a cost of £1,969,000. It is the aim that the Buyback Programme will reduce the Company's share capital and in turn drive an increase in the earnings per share and consequently the yield for all shareholders.

 

Dividends

 

Under the Company's current distribution policy, it will look to pay annual dividends in excess of 55% of its annual profits after tax, subject to market and capital requirements. This total will be split between interim dividends (1/3) (generally to be paid in the month of November) and final dividends (2/3) (generally to be paid in the month of May).

 

The Board declared an interim dividend for the six months ended 30 April 2023 of 2.97 pence per Ordinary share (the "Interim Dividend"), which amounted to £11.2 million, paid to shareholders on 23 November 2023 to shareholders on the register on 3 November 2023.

 

The Board has recommended a final dividend for the year ended 31 October 2023 of 4.42 pence per Ordinary share ("Final Dividend") amounting to £16.6 million. Combined with the Interim Dividend, this brings the total dividend for the year ended 31 October 2023 to 7.39 pence per Ordinary share (£27.9 million).

 

Subject to approval at the Company's annual general meeting on 26 April 2024, the Final Dividend will be paid on 23 May 2024 to shareholders listed on the register at the close of business on 26 April 2024. The ex-dividend date will be 25 April 2024.

 

Sustainability

 

We remain committed to strengthening our sustainability activity to deliver our goals through inventing eco-responsible local services to support growth by integrating social, environmental, and economic expectations into our strategy and operations. Details of our Sustainability approach and KPIs are available on the Group's website at me-group.com.

 

Looking ahead

 

Laundry is a key part of our growth strategy and we continue to invest to expand our portfolio and build on new and existing partnerships, to further extend our convenient laundry services in high footfall destinations. We are also improving the user experience, through the launch of our consumer App for our laundry services, which delivers better marketing insight. In the year ahead, we plan to install an average of 80-90 Revolution laundry machine per month, with a particular focus on expansion in France and the United Kingdom. 

 

The photobooth market remains robust, and even though it is a mature market, turnover and the number of transactions has stayed stable from year-to-year. Within the Group, 70% of the photobooth market is based on the requirement for official photos (driving licences, passports, ID photos, etc.), unofficial photos (universities, schools, sports clubs etc.) and, to a lesser extent, fun products.

 

The Group does not foresee a drop in demand for official photos in the short- or medium-term. The Group is securing this market as much as possible by developing agreements with administrations and regulatory bodies (ANTS in France, HMPO in the UK and MY NUMBER in Japan) and by trying to replicate this same model in other countries and by extending it to all official needs (passports, identity cards and driving licences). The demand for official photos is helped by the continual introduction of new legislation (for example, the compulsory renewal of 'old pink driving licences' in France and the My Number campaign in Japan).

 

At the same time, the Group is working on a range of additional, more entertaining offers in photobooths that could attract other consumers.

 

The Group has proven to be resilient, despite the ongoing macroeconomic headwinds. It remains highly cash generative, and our financial position remains strong, driven by good trading momentum across the business. This supports the Board's confidence in the Company's ability to make further strategic progress in FY 2024 and beyond.

 

The Board expects the Group to achieve continued revenue and earnings growth in the financial year ahead, building on the success of FY 2023, subject to any major changes to the macroeconomic environment.

 

 

Sir John Lewis OBE

Non-executive Chairman

 

22 February 2024

 

CHIEF EXECUTIVE'S REPORT

 

BUSINESS REVIEW

 

We are pleased to report a record financial performance in FY 2023. Photo.ME and Wash.ME have continued to drive the overall Group performance as photo ID and laundry services remain in high demand across our key territories, and the Group continued to deliver against its long-term growth strategy.

 

Our continued focus on technological innovation and diversification, underpinned by our in-house R&D capabilities, enables us to meet the needs of end-users internationally. This, alongside the global footprint of our operations, well positions us on the international stage as a leading operator in instant service vending.

 

Financial performance

 

Total revenue increased by 14.6% to £297.7 million (2022: £259.8 million), with strong growth delivered in each of our geographic regions.

 

By geography, our largest region, Continental Europe, reported revenue growth of 15.4%, due to  a continued strong performance in France. In the UK & Republic of Ireland, revenue was up 14.8%, and in Asia Pacific operating revenue was up 11.0%.

 

Each of our principal business areas delivered operating revenue growth year-on-year compared with the same period in FY 2022. Our laundry operations performed particularly strongly, up 32.0%, photobooth operations grew by 11.8%, digital printing by 5.6% and Other Vending Equipment and Feed.ME operating revenue was up 30.8% on FY 2022.

 

As a result of the above, EBITDA (excluding associates) was £106.6 million, an increase of 15.6%, which delivered an EBITDA margin of 35.8%. Reported profit before tax was up 25.7% to £67.1 million (2022: £53.4 million), with all regions reporting growth.

 

The Group's corporation tax charge for the year was £16.4 million, resulting in an effective tax rate of 24.4%. Tax charge for the prior year was £14.6 million, an effective tax rate of 27.4%.

 

Capital expenditure was £53.5 million, primarily related to laundry (£24.7 million), photobooths (£8.9 million), kiosks (£3.1 million), plant, machinery and vehicles (£6.3 million) and the acquisition of a photobooth business in Japan (£4.8 million).

 

The Group remains well capitalised and in a strong financial position, with net cash of approximately £33.9 million.

 

During the year ended 31 October 2023, the Group repurchased 1,260,534 of its ordinary shares and also paid dividends totalling £23.4 million (comprising the interim dividend for 2022 of £9.8 million, the final dividend for 2022 of £11.3 million and a special dividend for 2022 of £2.3 million). In November 2023, the Company paid its announced interim dividend for 2023, totalling £11.2 million.

 

Further details of the Group's performance by business area and geographic region are set out below.

 

Overview of principal business areas

 

Below is an overview of the Group's four principal business areas: photobooth (Photo.ME), digital printing (Print.ME), laundry (Wash.ME) and food (Feed.ME). In addition, the Group operates Other Vending Equipment.

 

 

Photo.ME - Photobooths and secure integrated biometric photo ID solutions

 

12 months ended
31 October 2023

12 months ended
31 October 2022

Number of units in operation

30,762

27,625

Percentage of total group vending estate (number of units)

64.7%

62.9%

Revenue

£172.5m

£154.3m

Capex

£8.9m

£3.0m

EBITDA

£61.8m

£54.2m

 

Our photobooth operations, our largest business area by number of units, revenue and EBITDA contribution, continued to perform strongly throughout the financial year.

 

Revenue increased by 11.8% to £172.5 million (2022: £154.3 million). This performance was supported by continued demand of official photo ID, the continued expansion of the estate both organically and through acquisition, and annualised benefits of FY 2022 price increases implemented in certain locations, particularly France, Germany and Austria. The average revenue per machine (excluding VAT) increased to £5,908 per year (2022: £5,586 per year).

 

Subsequently, EBITDA was up 14.0% at £61.8 million and represented 58.0% of total Group EBITDA. EBITDA was 35.8% of photobooth revenue during the Period.

 

Capex increased from £3 million to £8.9 million, reflecting investment in the rollout of next generation photobooths, with 547 installed in France and Germany in FY 2023. While deployment of the machines was slower than initially expected, due to supplier delays, these short-term challenges have been resolved. At the year-end we were installing approximately 180 next-generation units per month. In addition, a programme to upgrade our existing photobooth estate with new proprietary software and functionalities is underway.

 

At 31 October 2023, the number of photobooths in operation was 30,762, an 11.4% increase on the prior year (2022: 27,625), reflecting the ongoing expansion programme as we continue to rollout units in existing and new territories. This represents 64.7% of the Group's total vending units.

 

Growth strategy and progress

 

We believe that there are a number of long-term growth drivers in place which underpin our continued expansion. Demand for photo ID for the use in official documentation, including driving licences and passports, Government requirements for digitalised photo ID and security to combat fraud, and consumers increasingly requesting multi-functional instant services are all factors underpinning the continued growth of Photo.ME. There continues to be a compelling case for the Group to grow its photobooth business and benefit from industry trends and widespread consumer demand.

 

Our next-generation photobooth was developed by the Group's in-house R&D team and offers range of new functionalities, focused around enhancing the user experience. These new features include 'Mobile to Print', user personalisation services using AI and photo filters. The Group expects other new functions will be added over time. The Group aims to install 3,000 next-generation machines in FY 2024, and approximately 8,000 next-generation photobooths by the end of FY 2025.

 

At the same time, the Group is modernising the hardware of its existing photobooth estate and intends to install its new proprietary software at a rate of around 200 machines per month. This proprietary software enables the Group's engineers to quickly and cost-effectively upgrade each machine, remotely rather than needing to physically visit the machines.

 

In October 2023, the Company's Japanese subsidiary, ME Group Japan K.K., acquired the automated-photobooth business owned and operated by two subsidiaries of FUJIFILM Corporation (formerly FUJIFILM Co., Ltd) in Japan for an initial consideration of £4.8 million (Japanese Yen 873 million), funded by a local loan facility. This added 3,548 traditional photobooths, located in high-footfall locations such as travel hubs and shopping centres throughout Japan, delivering official photo ID for consumers, including for the government's social security and taxation photo ID card scheme. The acquired photobooths were fully integrated into the Group's operations in Japan in October 2023 and will benefit from operational synergies under the Group's ownership. Further details of the Japan acquisition are detailed in the Review of Performance by Geography section.

 

Following the Group's entry into the Australian market through a small acquisition in 2021, the Group is trialling 11 photobooths in across Sydney and Melbourne, as part of our ongoing diversification strategy as we build our presence in both new and existing markets. Whilst this is at an early stage in terms of building out the market, the Group is exploring how best to drive forward expansion and remains excited by the prospects for the Australian market.

 

The Board continues to believe that there are longer-term opportunities in the photo ID market across both existing and new geographic markets.

 

Planned photobooth investment in FY 2024 is between £15 million and £20 million, with a target return on investment in approximately 18 months.

 

 

Wash.ME - Unattended Revolution laundry services and laundrettes

 

12 months ended
31 October 2023

12 months ended
31 October 2022

Total Laundry units deployed (owned, sold and acquisitions)

6,870

5,924

Total revenue from Laundry operations

£81.6m

£61.8m

Total Laundry EBITDA

£39.5m

£29.1m

Revolution

 


 - Number of Revolutions in operation

5,533

4,754

 - Percentage of total group vending estate (number of units)

11.6%

10.8%

 - Total revenue from Revolutions

£76.1m

£56.7m

 - Revolution capex

£24.7m

£20.2m

 

Total revenue from our laundry operations grew by 32.0% to £81.6 million as we continued to expand our estate of Revolution laundry units, generating a higher level of turnover from this business. At 31 October 2023, the total number of laundry units deployed (owned, sold) was up 16.0% to 6,870. Total laundry EBITDA increase by 35.7% to £39.5 million.

 

Growth of Revolution laundry operations

 

The total number of Revolution units in operation grew 16.4% to 5,533, as the Group continued to roll out new machines at a rate of 65 per month, with more than 780 machines installed during the year. Revolution laundry machines accounted for 11.6% of the Group's total estate by number of machines (2022: 10.8%).

 

Revenue increased by 34.2% to £76.1 million, which represented 25.6% of Group revenue, driven by a combination of higher demand and more machines in operation. The average revenue per machine (excluding VAT) was £14,793 per year (2022: £12,816 per year).

 

EBITDA was £39.5 million and contributed 37.1% of Group EBITDA. EBITDA from Revolution was 48.4% of revenue.

 

Wash.ME remains our fastest growing and highest margin business area and we continued to invest to deliver our expansion plans. As a result, Revolution capex increased to £24.7 million (2022: £20.2 million) reflecting the continued rollout of units across our core territories. Furthermore, the Group has entered a period of machine refurbishment and maintenance, the first since laundry operations were launched in 2012.

 

Growth strategy and progress

 

A key part of our growth strategy for the laundry business is expanding operations through new and existing partners in target territories, as a means of meeting consumer demand by offering convenient, competitively priced and high-capacity laundry services. We announced a new strategic partnership with leading supermarket chain Co-op, in the UK, to position Revolution units at sites in selected parts of the country. The partnership will allow us to position laundry services at an increasing number of high footfall locations across the UK, offering convenient laundry services to consumers at those sites. We see this as a mutually beneficial relationship where we build a destination for consumers looking for high-capacity laundry facilities while shopping.

 

As well as entering new market segments through strategic partnerships, the Group continues to deliver innovative solutions to drive forward the service offering available under Wash.ME. Alternative machine formats continue to prove popular with different types of users. We see good potential for our 'Flex' units, a compact format that can fit into smaller spaces, and believe there to be a long-term opportunity to address the domestic market and at-home laundry needs. Whilst this is at an early stage, we will continue to monitor the opportunity and update in due course. 

 

In June, the Group began rolling out a new consumer App aimed at laundry services as a means of improving the user experience as well as providing better marketing insights on the Group's end-consumers. It remains a focus for us to improve the App and work towards rolling this out more widely across our operations.

 

The Group plans to install an average of 80-90 laundry machines per month in FY 2024. In addition, photovoltaic solar panels on being installed on Revolution laundry machines rollout across key territories, including France and the United Kingdom.

 

Planned laundry investment in FY 2024 will be £22.0 million to £30.0 million, with a with a target return on investment in approximately 18 months.

 

Print.ME - High-quality digital printing services

 

12 months ended
31 October 2023

12 months ended
31 October 2022

Number of units in operation

4,734

4,785

Percentage of total group vending estate (number of units)

10.0%

10.9%

Revenue

£11.3m

£10.7m

Capex

£3.1m

£1.3m

EBITDA

£4.2m

£3.6m

 

Our estate of digital printing kiosks offers a wide range of competitively priced print formats and personalised products. Our key markets are France, where most machines are situated, the UK and Switzerland.

 

At 31 October 2023 the Group had 4,734 kiosks in operation, a reduction of 1.1% compared with the prior year. These accounted for 10.0% of the total number of vending units in operation.

 

Revenue increased to £11.3 million from £10.7 million in the prior year, reflecting increased demand from new digital kiosks, replacing 413 old machines.  Revenue represented 4.1% of Group revenue.

 

The average revenue per machine (excluding VAT) was £2,374 per year (2022: £2,279).

 

EBITDA was £4.2 million which represented 3.9% of Group EBITDA. EBITDA was 37.2% of Print.ME revenue in the period.

 

Capex was £3.1 million, a significant increase on the prior year reflecting an investment programme to replace some existing machines, and deployment of 500 new kiosks.

 

Growth strategy and progress

 

In recent years, we have focused more investment towards the Print.ME business as demand for high-quality digital printing services remains robust. This, paired with the increasing use of smartphones and demand for social media sharing, presents a long-term opportunity for our digital printing services. The Group is forecasting c.£3.0 million of capex in FY 2024. As part of the growth strategy for this business area, the Group continues to explore opportunities to extend the services offered through its wider vending estate including digital printing services. Our next-generation photobooths, currently being deployed, offers this functionality as part of the multi-service offering.

 

Feed.ME - Vending equipment for the food service market

 

Feed.ME activities are focused on two areas, self-service fresh fruit juice equipment market and  pizza vending machines aimed at the B2B retail and hospitality markets. The Group currently has operations in Belgium, France, Japan and Switzerland.

 

The Feed.ME business model is primarily based on the sale of vending equipment. Customers frequently, but under no obligation, sell the vending equipment back to the Group at a later date. The equipment is then refurbished and re-sold, generating repeat revenue for the Group.

 

The Group also sells maintenance agreements, under which it services vending equipment for an agreed period of time.

 

Technical adjustments to our pizza vending machine led the Group to move manufacture of this machine in-house during the commercialisation phase. This enabled us to increase production to 30 machines per month and ensures that our R&D team are on hand to support and have oversight of quality control and cost efficiencies. 

 

On a smaller scale, the Group operates fruit juice machines in Japan. During the year we reinstated our B2B vending operations aimed at end markets such as the hospitality sector. At 31 October 2023, the Group had 441 freshly squeezed-orange-juice vending machines in operation, which includes fulfilment of the oranges for the machines.

 

Revenue from the sale of equipment, consumables and services was £8.9 million. Combined with other revenue (£4.6 million), the total revenue of Feed.ME was £13.5 million (2022: £12.5 million). This business area contributed 4.5% of total Group revenue.

 

A review following the technical issues experienced with the pizza machines, which have slowed progress in this business area, has resulted in an impairment of goodwill and intangibles of £2.6 million related to the acquisition of the pizza vending machine manufacturer (Resto'Clock) in 2021. The group will continue to sell pizza vending equipment, with the target of relaunching this division and improving profitability.

 

EBITDA was £3.8 million and contributed 3.6 % of Group EBITDA.

 

Growth strategy and progress

 

The food service sector remains an attractive proposition for the Group. We remain focused on growing our fruit juice vending machine operations in Japan and we plan to increase the production of our pizza vending machines, with the aim of selling more than 15 per month.

 

The Group's aim is to become the food vending equipment market leader in Europe.

Other vending equipment

Growth Strategy In Action

 

Our growth strategy is centred on five key pillars to support the development of the Group's principal business areas: photobooths, laundry services, digital printing and food vending equipment.

 

We are pleased to have made solid progress against our five-year plan to 2027, driving forward a number of initiatives as part of this mid-term roadmap.

 

Below we are pleased to outline progress in FY 2023 on delivery of our growth strategy against each of the five key pillars aimed at supporting the development of the Group's principal business areas.

 

1.  Expansion into new geographic territories

Continue to build the Group's international presence in recently entered markets of Italy, Finland and Australia.

 

Progress in FY 2023

 

The Group has continued to drive expansion of operations in new geographic territories. In Australia, we have around 11 photobooths installed across Sydney and Melbourne, our pilot cities. Whilst expansion in Australia remains at an early test phase, we continue to look at how we can best grow our operations and believe there is a significant opportunity in the region.

 

 

2.   Entering new market segments

 

Through securing new partnerships with businesses such as supermarkets and smaller retailers.

 

Progress in FY 2023

 

Our partners and site owners remain a valuable route for us to grow our business by entering new market segments. We launched new partnerships with Co-op and Morrisons, two major supermarket chains in the UK, enabling us to offer conveniently accessible laundry services to consumers at those sites.

 

 

3.   Ongoing new product and technology innovation

Progress in FY 2023

 

The Group is well underway with the deployment of modernisation software across its photobooth estate. This new proprietary software provides us with the ability to deploy new functionality and services, as well as update interfaces, remotely. Further details are disclosed further down in this report.

 

 

4.   Continued expansion and diversification of services

 

The Group has rolled out a number of next generation photobooths, predominantly across France, as part of our strategy to introduce a multi-service offering across its operations. Machines are being installed at a rate of around 180 per month with ambitions to increase to 250 new installations per month during 2024.

 

 

5.   Merger and acquisition strategy

Innovation and Diversification

 

Continuous technological innovation and diversification of operations are central to the Group's growth strategy, driven by our dedicated 50-strong R&D team, most of whom work at our primary R&D facility in France.

 

We are continually looking at ways to create or evolve service offerings through our vending estate that meet the changing needs of consumers both across our existing and new markets. Our in-house team develops and tests new technologies, products, and functionality before these enter the commercialisation phase and are deployed within our vending estate.

 

In recent years, innovation has been primarily focused on key initiatives to digitally transform the Group, improve operational efficiencies and enhance the end-user experience.

 

1.         A state-of-the-art user experience, backed by the best technology

·      Design of new, intuitive, and modern user interfaces across product categories

·      Integration of digital payment systems

·      Up-to-date functionalities, through an aggregate of the best of external technology providers

 

2.       An omnichannel approach, leveraging digital functionalities to enhance user experience of our brands and explore new business models

·      Use of a powerful CRM which offers a customised experience to end users

·      Launch of applications that connect to our machines to offer mobile-to-machine features

·   Remote management of our self-service vending equipment through a cloud-based infrastructure

·   Multi-service functionality for the next-generation machines. Centralised operating system offering operational efficiencies and a seamless, connected user experience for the consumer

 

 

 

Innovation in action

 

New proprietary software

 

Our new proprietary software developed by the in-house R&D team is at the centre of the Group's digital transformation, which is initially being rolled out for photobooths. This software is fitted as standard on all next-generation photobooths being installed and, over the coming years, the Group aims to retrofit this software across its existing photobooth estate.

 

At the touch of a button, the Group will be able to remotely run a software upgrade for each photobooth, giving it the ability to deploy new functionality and services quickly and cost-effectively.. It will allow the Group to remotely update the consumer interface and enhance the end-user experience.

 

Previously, software updates were implemented manually by an engineer on site.

 

Enhanced user experience

 

Our next-generation photobooth offers a redesigned user experience (UI and UX) to support greater digital functionality. This includes visual enhancements to the user interface as well as a more efficient consumer interaction, such as a reduction in the number of clicks required during user interaction. Additionally, users will be able to provide feedback on their experience via a QR code on each machine.

 

Ongoing digitalisation driving operational efficiencies

 

We are currently working to develop several new initiatives to centralise back-office processes aimed at driving operational efficiencies. These include:

 

·      A new application for field engineers offering centralised route planning

·      Real-time telematics to monitor the operational performance of each machine and reduce downtime

·      A new CRM tools to support the Group's sales team function, due to go live by the end of 2024

·      Applications to enhance engagement with end user and support marketing campaigns, with new store locator launched in June 2024

·      Launch of end-user App in the first half of 2024

 

REVIEW OF PERFORMANCE BY GEOGRAPHY

 

Commentary on the Group's financial performance is set out below, in line with the segments as operated by the Board and the management of the Group. These segmental breakdowns are consistent with the information prepared to support the Board's decision-making. Some commentary below relates to the performance of specific products in the relevant geographies.

 

Vending units in operations

At October 2023

At October 2022


Number

% of total

Number

% of total


of units

estate

of units

estate

Continental Europe

26,232

55.1%

25,331

57.7%

UK & Republic of Ireland

6,297

13.2%

6,858

15.6%

Asia Pacific

15,037

31.6%

11,721

26.7%

Total

47,566

100%

43,910

100%

 

The total number of vending units in operation at 31 October 2023 increased by 8.3% to 47,566 (2022: 43,910), mainly due to the acquisition of a photobooth business in Japan, which was completed in September 2023.

 

Revenue by geographic region

12 months ended
31 October 2023

12 months ended
31 October 2022


 


Continental Europe

£205.2m

£177.8m

UK & Republic of Ireland

£48.2m

£42.0m

Asia Pacific

£44.3m

£39.9m

Total

£297.7m

£259.7m

 

Operating profit by geographic region

12 months ended
31 October 2023

12 months ended
31 October 2022


 


Continental Europe

£62.6m

£51.3m

UK & Republic of Ireland

£12.4m

£11.6m

Asia Pacific

£4.3m

£2.0m

Corporate costs

£(11.8)m

£(8.1)m

Total

£67.5m

£56.8m

 

Total revenue increased by 14.6% to £297.7 million, reflecting the strong year-on-year performance in all three geographic areas from higher consumer demand for the Group's instant-service machines and, to a lesser extent, the year-on-year benefit of end consumer pricing rises implemented during 2022.


Continental Europe

 

UK & Republic of Ireland

 

Asia Pacific

 

 

Serge Crasnianski

Chief Executive Officer & Deputy Chairman

22 February 2024

 

 

 

 

Key performance Indicators (KPIs)

 

Description

Relevance

Performance




12 months ended
31 October

12 months ended
31 October




2023

2022

Total Group revenue at actual rate of exchange



£297.7m

£259.8m

Group Profit before tax



£67.1m

£53.4m

Increase in number of photobooths



3,137

(242)

Increase in number of Laundry units (operated)

The increase in number of Revolutions is a constant priority and a main driver for growth

779

660

PRINCIPAL RISKS

 

As with any business, the Group faces risks and uncertainties that could impact the achievement of the Group's strategy.

 

Economic

Nature of risk

Description and impact

Mitigation

Global economic conditions

Economic growth has a major influence on consumer spending.

A sustained period of economic recession and a period of high inflation could lead to a decrease in consumer expenditure in discretionary areas.

The Group focuses on maintaining the characteristics and affordability of its needs-driven products.

Like most businesses around the world, the Group has had to face a significant increase in supply chain and raw material costs, however, its strong position in the markets in which it operates gives the Group significant pricing power.

The Group has no exposure to the invasion of Ukraine by Russia and other conflict areas.

Volatility of foreign exchange rates

The majority of the Group's revenue and profit is generated outside the UK, and the Group's financial results could be adversely impacted by an increase in the value of sterling relative to those currencies. Current and imminent global events (including upcoming elections in both the UK the US) could well cause currency volatility.  

The Group hedges its exposure to currency fluctuations on transactions, as relevant. However, by its nature, in the Board's opinion, it is very difficult to hedge against currency fluctuations arising from translation in consolidation in a cost-effective manner.

Regulatory

Nature of risk

Description and impact

Mitigation

Centralisation of the production of ID photos

In many European countries where the Group operates, if governments were to implement centralised image capture, for biometric passport and other applications, or widen the acceptance of self-made or home-made photographs for official document applications, the Group's revenues and profits could be affected.

The Group has developed new systems that respond to this situation, leveraging 3D technology in ID security standards, and securely linking our booths to the administration repositories. Solutions are in place in France, Ireland, Germany, Switzerland and the UK.

Furthermore, the Group also ensures that its ID products remain affordable and of a high-quality.

 

 

 

Strategic

Nature of risk

Description and impact

Mitigation

Identification of new business opportunities

The failure to identify new business areas may impact the ability of the Group to grow in the long-term.

Management teams constantly review demand in existing markets and potential new opportunities. The Group continues to invest in research in new products and technologies. Furthermore, the Group also ensures that its ID products remain affordable and of a high-quality.

Inability to deliver anticipated benefits from the launch of new products

The realisation of long-term anticipated benefits depends mainly on the continued growth of the laundry and food businesses and the successful development of integrated secure ID solutions. Failure in this regard could lead to a lack of competitiveness.

The Group regularly monitors the performance of its entire estate of machines. New technology-enabled secure ID solutions are heavily trialled before launch and the performance of operating machines is continually monitored.

Market

Nature of risk

Description and impact

Mitigation

Commercial relationships

The Group has well-established, long-term relationships with a number of site-owners. The deterioration in the relationship with, or ultimately the loss of, a key account would have an adverse, albeit contained, impact on the Group's results, bearing in mind that the Group's turnover is spread over a large client base and none of the accounts represent more than 2% of Group turnover.

To maintain its performance, the Group needs to have the ability to continue trading in good conditions in France and the UK, taking into account the situation in these two countries.

The Group's major key relationships are supported by medium-term contracts. The Group actively manages its site-owner relationships at all levels to ensure a high quality of service.

The Group continues to monitor the situation in both the French and the UK markets.

 

Operational

Nature of risk

Description and impact

Mitigation

Reliance on foreign manufacturers

The Group sources most of its products from outside the UK. Consequently, the Group is subject to risks associated with international trade.

Extensive research is conducted into quality and ethics before the Group procures products from any new country or supplier. The Group also maintains very close relationships with both its suppliers and shippers to ensure that risks of disruption to production and supply are managed appropriately.

Reputation

The Group's brands are key assets of the business. Failure to protect the Group's reputation and brands could lead to a loss of trust and confidence. This could result in a decline in our customer base.

The protection of the Group's brands in its core markets is sustained with certain unique features. The appearance of the machine is subject to high maintenance standards. Furthermore, the reputational risk is diluted as the Group also operates under a range of brands.

Product and service quality

 

The Board recognises that the quality and safety of both its products and services are of critical importance and that any major failure could affect consumer confidence and the Group's competitiveness.

The Group continues to invest in its existing estate, to ensure that it remains contemporary, and in constant product innovation to meet customer needs.

The Group also has a programme in place to regularly train its technicians.

Technological

Nature of risk

Description and impact

Mitigation

Failure to keep up with advances in technology

The Group operates in fields where upgrades to new technologies are critical. Failure to exceed or keep in step could result in a lack of ability to compete.

The Group mitigates this risk by continually focusing on R&D.

Cyber risk: Third party attack on secure ID data transfer feeds

The Group operates an increasing number of photobooths capturing ID data and transferring these data directly to government databases. The rising threat of cybercrime could lead to business disruption as well as to data breaches.

The Group undertakes an ongoing assessment of the risks and ensures that the infrastructure meets the security requirements.

 

Environmental

Nature of risk

Description and impact

Mitigation

Increased potential legislation and the rising cost of waste disposal. Energy consumption, water scarcity, and rising car fuel prices (for employees, suppliers, transportation and final consumers) and raising awareness of the climate crisis amongst consumers

The rising costs associated with compliance with such increased demands could impact on overall profitability.

Reducing the amount of waste produced; and the recovery, refurbishment and resale of electrical equipment such as children's rides which promote the principle embodied in recent legislation of reuse before recycling.

 


GROUP FINANCIAL STATEMENTS

Group Statement of Comprehensive Income

For the 12 months ending 31 October 2023


12 months ended
31 October


12 months ended
31 October



2023


2022


 Notes 

  £ '000  


  £ '000  

 Revenue 

3  

297,662  


259,780  

 Cost of Sales 


(195,017) 


(178,377) 

 Gross Profit 


102,645  


81,403  

 Other Operating Income 


194  


7,916  

 Administrative Expenses 


(35,351) 


(32,638) 

 Share of Post-Tax Profits from Associates 


14  


-   

 Operating Profit 


67,502  


56,681  

 Other net gains / (losses) 


701  


(1,176) 

 Finance Income 


1,401  


-   

 Finance Cost 


(2,537) 


(2,151) 

 Profit before Tax 


67,067  


53,354  

 Total Tax Charge 

4  

(16,401) 


(14,561) 

 Profit for the year 


50,666  


38,793  



 



 Other Comprehensive Income 


 



 Items that are or may subsequently be classified to Profit and Loss: 


 



 Exchange Differences Arising on Translation of Foreign Operations 


454  


829  

 Total Items that are or may subsequently be classified to profit and loss 


454  


829  

 Items that will not be classified to profit and loss: 


 



 Remeasurement (losses) / gains in defined benefit obligations and other post-employment benefit obligations 


(220) 


1,151  

 Deferred tax on remeasurement losses / (gains) 


48  


(248) 

 Total Items that will not be classified to Profit and Loss 


(172) 


903  

 Other comprehensive income for the year net of tax 


282  


1,732  

 Total Comprehensive income for the ear 


50,948  


40,525  



 



 Profit for the Year Attributable to: 


 



 Owners of the Parent 


50,666  


38,793  

 Non-controlling interests 


-   


-   



50,666  


38,793  



 



 Total comprehensive income attributable to: 


 



 Owners of the Parent 


50,948  


40,525  

 Non-controlling interests 


-   


-   



50,948  


40,525  



 



 Earnings per Share 


 



 Basic Earnings per Share 

6  

13.40p


10.26p

 Diluted Earnings per Share 

6  

13.31p


10.23p

All results derive from continuing operations.

 

The accompanying notes form an integral part of these condensed consolidated financial statements.



Group Statement of Financial Position

As at 31 October 2023


31 October

31 October



2023

2022



 

(restated)


 Notes 

 £'000 

 £'000 

 Assets 


 

 

 Goodwill 

7  

18,888  

16,320  

 Other intangible assets 

7  

13,054  

16,435  

 Property, plant & equipment 

7  

118,124  

101,090  

 Investment property 

7  

-   

592  

 Investment in associates 


35  

21  

 Financial instruments held at FVTPL 


5,886  

5,239  

 Other receivables 


3,005  

1,973  

 Non-Current Assets 


158,992  

141,670  

 Inventories 


32,501  

25,491  

 Trade and other receivables 


21,391  

20,050  

 Current tax 


7,962  

2,990  

 Cash and cash equivalents 

8  

111,091  

136,185  

 Current assets 


172,945  

184,716  

 Non-Current Assets Classified as Held for Sale 


585  

-   

 Total assets 


332,522  

326,386  



 


 Equity 


 


 Share capital 


1,891  

1,889  

 Share premium 


11,083  

10,627  

 Treasury shares 


(1,969) 

-   

 Translation and other reserves 


11,958  

11,159  

 Retained earnings 


136,025  

108,974  

 Total Shareholders' funds 


158,988  

132,649  





 Liabilities 




 Financial liabilities 

8  

58,447  

82,429  

 Post-employment benefit obligations 


4,063  

3,850  

 Deferred tax liabilities 


8,566  

7,778  

 Non-current liabilities 


71,076  

94,057  

 Financial liabilities 

8  

32,063  

35,657  

 Provisions 


1,884  

1,567  

 Current tax 


10,590  

10,208  

 Trade and other payables 


57,921  

52,248  

 Current liabilities 


102,458  

99,680  

 Total equity and liabilities 


332,522  

326,386  

 

The accompanying notes form an integral part of these condensed consolidated financial statements.

 

Group Statement of Cash Flows

For the 12 months ending 31 October 2023

12 months ended
31 October

12 months ended
31 October


2023

2022


 £'000 

 £'000 

 Cash flow from operating activities 

 


 Profit before tax 

67,067  

53,354  

 Finance costs 

1,286  

794  

 Interest of lease liabilities 

1,251  

1,357  

 Finance income 

(1,401) 

-   

 Other net (gains) / losses 

(701) 

1,176  

 Operating profit 

67,502  

56,681  

 Amortisation and impairment of intangible assets 

6,586  

6,772  

 Depreciation and impairments of property,plant and  equipment 

32,552  

28,791  

 Loss / (gain) on sale of property, plant and equipment and intangible assets 

555  

(7,490) 

 Exchange differences 

(129) 

(594) 

 Movements in provisions 

362  

(809) 

 Other non cash items 

(33) 

(432) 

 Changes in working capital: 

-   

-   

 Inventories 

(7,010) 

(7,033) 

 Trade and other receivables 

(2,372) 

2,295  

 Trade and other payables 

5,673  

9,764  

 Cash generated from operations 

103,686  

87,945  

 Net interest paid 

(1,136) 

(2,151) 

 Taxation paid 

(20,203) 

(10,895) 

 Net cash generated from operating activities 

82,347  

74,899  

 Cash flows from investing activities 

 

-   

 Acquisition of subsidiaries 

(4,790) 

(739) 

 Proceeds from disposal of subsidiaries 

209  

152  

 Purchase of intangible assets 

(2,813) 

(2,486) 

 Proceeds from sale of intangible assets 

-   

71  

 Purchase of property, plant and equipment 

(45,842) 

(32,670) 

 Proceeds from sale of property, plant and equipment 

1,539  

8,997  

 Investment in financial instruments 

-   

(4,450) 

 Net cash utilised in investing activities 

(51,697) 

(31,125) 

 Cash flows from financing activities 

 

 

 Issue of ordinary shares to equity shareholders 

458  

28  

 Acquisition of minority interest 

-   

(2,985) 

 Purchase of treasury shares 

(1,969) 

-   

 Repayment of principal of leases 

(5,857) 

(6,196) 

 Repayment of borrowings  

(30,960) 

(24,622) 

 New borrowings drawn 

4,817  

61,773  

 Dividends paid to owners of the Parent 

(23,443) 

(35,497) 

 Net cash utilised in financing activities 

(56,954) 

(7,499) 

 Net (decrease) / increase in cash and cash equivalents 

(26,304) 

36,275  

 Cash and cash equivalents at beginning of year 

136,185  

99,362  

 Exchange gain on cash and cash equivalents 

1,210  

548  

 Cash and cash equivalents at end of year 

111,091  

136,185  

 

The accompanying notes form an integral part of these condensed consolidated financial statements.


Group Statement of Changes in Equity

For the 12 months ending 31 October 2023

 Share 

capital
 £'000 

 Share 
premium 
£'000 

 Treasury shares
£'000 

 Other 
reserves 

£'000 

 Translation 
reserve
£'000 

 Retained 
earnings 
£'000 

 Attributable to 
owners of the 
Parent 
£'000 

 Non-controlling 
interests 
£'000 

 Total 
£'000 

 At 1 November 2021 

1,889  

10,599  

-   

1,781  

7,654  

106,051  

127,974  

1,720  

129,694  

 Profit for the period 

-   

-   

-   

-   

-   

38,793  

38,793  

-   

38,793  

 Other comprehensive income / (expense): 










 Exchange differences 

-   

-   

-   

-   

840  

-   

840  

(11) 

829  

 Remeasurement gains in defined benefit pension scheme and other post-employment benefit obligations 

-   

-   

-   

-   

-   

1,151  

1,151  

-   

1,151  

 Deferred tax on remeasurement gains 

-   

-   

-   

-   

-   

(248) 

(248) 

-   

(248) 

 Total other comprehensive income / (expense) 

-   

-   

-   

-   

840  

903  

1,743  

(11) 

1,732  

 Total comprehensive income / (expense) 

-   

-   

-   

840  

39,696  

40,536  

(11) 

40,525  

 Transactions with owners of the Parent: 










 Shares issued in the period 

-   

28  

-   

-   

-   

-   

28  

-   

28  

 Share options 

-   

-   

-   

884  

-   

-   

884  

-   

884  

 Dividends  

-   

-   

-   

-   

-   

(35,497) 

(35,497) 

-   

(35,497) 

 Acquisition of minority 

-   

-   

-   

-   

-   

(1,276) 

(1,276) 

(1,709) 

(2,985) 

 Total transactions with owners of the Parent 

28  

-   

884  

-   

(36,773) 

(35,861) 

(1,709) 

(37,570) 

 At 31 October 2022 

1,889  

10,627  

-   

2,665  

8,494  

108,974  

132,649  

-   

132,649  

 At 1 November 2022 

1,889  

10,627  

-   

2,665  

8,494  

108,974  

132,649  

-   

132,649  

 Profit for the period 

-   

-   

-   

-   

-   

50,666  

50,666  

-   

50,666  

 Other comprehensive income / (expense): 

 

 

 

 

 

 

 

 

 

 Exchange differences 

-   

-   

-   

-   

454  

-   

454  

-   

454  

 Remeasurement losses in defined benefit pension scheme and other post-employment benefit obligations 

-   

-   

-   

-   

-   

(220) 

(220) 

-   

(220) 

 Deferred tax on remeasurement losses 

-   

-   

-   

-   

-   

48  

48  

-   

48  

 Total other comprehensive income / (expense) 

-   

-   

-   

-   

454  

(172) 

282  

-   

282  

 Total comprehensive income 

-   

-   

-   

-   

454  

50,494  

50,948  

-   

50,948  

 Transactions with owners of the Parent: 

 

 

 

 

 

 

 

 

 

 Shares issued in the period 

2  

456  

-   

-   

-   

-   

458  

-   

458  

 Purchase of treasury shares 

-   

-   

(1,969) 

-   

-   

-   

(1,969) 

-   

(1,969) 

 Share options 

-   

-   

-   

345  

-   

-   

345  

-   

345  

 Dividends 

-   

-   

-   

-   

-   

(23,443) 

(23,443) 

-   

(23,443) 

 Total transactions with owners of the Parent 

2  

456  

(1,969) 

345  

-   

(23,443) 

(24,609) 

-   

(24,609) 

 At 31 October 2023 

1,891  

11,083  

(1,969) 

3,010  

8,948  

136,025  

158,988  

-   

158,988  

The accompanying notes form an integral part of these condensed consolidated financial statements.

NOTES

1.   General information

 

2.   Basis of preparation and accounting policies

 

Whilst the financial information included in this preliminary announcement has been prepared in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS. This preliminary announcement constitutes a dissemination announcement in accordance with Section 6.3 of the Disclosures and Transparency Rules (DTR).

 

3.   Segmental analysis

 

 

 

Asia

Continental 

United Kingdom 



 

Pacific

Europe

& Ireland

Corporate

Total

31 October 2023

£'000

£'000

£'000

£'000

£'000

Total revenue

44,332  

211,432  

48,183  

-   

303,947  

Inter segment sales

-   

(6,275) 

(10) 

-   

(6,285) 

Revenue from external customers

44,332  

205,157  

48,173  

-   

297,662  

EBITDA

9,475  

90,109  

18,545  

(11,490) 

106,639  

Depreciation and amortisation

(5,126) 

(26,079) 

(6,785) 

(355) 

(38,345) 

(Impairment) / reversal of impairment

(37) 

(1,395) 

639  

-   

(793) 

Operating profit / (loss)

4,312  

62,635  

12,399  

(11,844) 

67,502  

Operating profit





67,502  

Other net gains





701  

Finance income





1,401  

Finance costs

   

   

   

   

(2,537) 

Profit before tax





67,067  

Tax

   

   

   

   

(16,401) 

Profit for the period

   

   

   

   

50,666  

Capital expenditure (excluding Right of Use assets)

8,846  

36,509  

7,380  

733  

53,468  







Non-current assets

28,134  

103,226  

26,508  

1,124  

158,992  

 

 

Asia

Continental 

United Kingdom 



 

Pacific

Europe

& Ireland

Corporate

Total

31 October 2022

£'000

£'000

£'000

£'000

£'000

Total revenue

39,945  

187,897  

41,996  

-   

269,838  

Inter segment sales

-   

(10,058) 

-   

-   

(10,058) 

Revenue from external customers

39,945  

177,839  

41,996  

-   

259,780  

EBITDA

9,094  

75,497  

15,388  

(7,738) 

92,241  

Depreciation and amortisation

(5,421) 

(26,153) 

(6,954) 

(322) 

(38,850) 

(Impairment) / reversal of impairment

(1,715) 

1,919  

3,086  

-   

3,290  

Operating profit / (loss)

1,958  

51,263  

11,520  

(8,060) 

56,681  

Operating profit





56,681  

Other net losses





(1,176) 

Finance income





-   

Finance costs

   

   

   

   

(2,151) 

Profit before tax





53,354  

Tax

   

   

   

   

(14,561) 

Profit for the period

   

   

   

   

38,793  

Capital expenditure (excluding Right of Use assets)

4,218  

20,056  

9,522  

1,359  

35,156  


 

 

 

 

 

Non-current assets (restated)

24,870  

90,959  

25,045  

796  

141,670  

  

 

 

Total revenue from external customers is analysed below:

 

31 October 

31 October 


2023

2022


£'000

£'000

Total revenue from external customers

 


Sales of equipment, spare parts & consumables

18,724  

20,459  

Sales of services

3,615  

3,895  


22,339  

24,355  

Vending revenue

275,323  

235,425  

Total revenue

297,662  

259,780  

 

There were no key customers in the period ended 31 October 2023 (2022: none).

 

 

4.   Taxation expenses

 

Tax charges/(credits) in the statement of comprehensive income

 

31 October 

 

31 October 


2023

 

2022


£'000

 

£'000

Taxation

 

 


Current taxation

 

 


UK Corporation tax

 

 


- current period

9,833  

 

6,104  

- prior periods

(1,068) 

 

2,253  


8,765  

 

8,357  

Overseas taxation

 

 


- current period

6,916  

 

7,200  

- prior periods

(212) 

 

90  


6,704  

 

7,290  

Total current taxation

15,469  

 

15,647  

Deferred taxation

 

 


Origination and reversal of temporary differences

 

 


- current period - UK

677  

 

(150) 

- current period - overseas

(663) 

 

(961) 

Adjustments in respect of prior periods - UK

843  


27  

Adjustments in respect of prior periods - Overseas

-   


45  

Impact of change in rate

75  

 

(47) 

Total deferred tax

932  

 

(1,086) 

Tax charge in the income statement

16,401  

 

14,561  

 

 

 


Tax relating to items (credited)/charged to other components of comprehensive income




Corporation tax

- 

 

- 

Deferred tax

(48) 

 

248  

Tax charge in other comprehensive income

(48) 

 

248  

 

 

 


Total tax charge in the statement of comprehensive income

16,353  

 

14,809  

 

The Group tax charge of £16.4m (2022: £14.6m) corresponds to an effective tax rate of 24.5% (2022: 27.4%).

 

The UK main rate of corporation tax increased from 19% to 25% on 1 April 2023.

The Group undertakes business in multiple tax jurisdictions.

 

5.   Dividends paid and proposed

31 October 2023


31 October 2022


pence   per share

£'000


pence   per share

£'000

Dividends Paid

 

 


 

 

Special dividend






Approved by the Board on 18 July 2022

-     

-     


6.50   

24,572   

Final

 

 




2021 approved at AGM held on 29 April 2022

-     

-     


2.89   

10,925   

Interim Dividend






2022 approved by the board on 18 July 2022

2.60   

9,829   


-     

-     

Final

 

 




2022 approved at AGM held on 28 April 2023

3.00   

11,345   


-     

-     

Special dividend

 

 




2022 approved by the board on 20 April 2023

0.60   

2,269   


-     

-     








6.20   

23,443   


9.39   

35,497   

Dividends Proposed






Interim Dividend






2022 approved by the board on 18 July 2022

-     

-     


2.60   

9,829   

Interim Dividend






2023 approved by the board on 11 July 2023

2.97   

11,240   


-     

-     








2.97   

11,240   


2.60   

9,829   

 

Period ended 31 October 2023 - Dividends paid in the period

The Board approved an interim dividend of 2.60p per ordinary share for the six month period ended 30 April 2022, at its 18 July 2022 meeting. The interim dividend was paid on 3 November 2022.

 

The Board proposed a final dividend of 3.00p per ordinary share in respect of the year ended 31 October 2022, which was approved by shareholders at the Annual General Meeting held on 28 April 2023 and paid on 12 May 2023.

 

The Board also approved, at its 20 April 2023 meeting, a special dividend of 0.60p per ordinary share, which was paid on 19 May 2023.

 

Period ended 31 October 2023 - Proposed dividends not paid in the period

The Board approved an interim dividend of 2.97p per ordinary share for the six month period ended 30 April 2023, at its 11 July 2023 meeting. The interim dividend was paid on 23 November 2023.

 

Period ended 31 October 2022 - Dividends paid in the period

The Board proposed a final dividend of 2.89p per ordinary share in respect of the year ended 31 October 2021, which was approved by shareholders at the Annual General Meeting held on 29 April 2022 and paid on 13 May 2022.

 

The Board also approved, at its 18 July meeting, a special dividend of 6.50p per ordinary share, which was paid on 1 September 2022.

 

Period ended 31 October 2022 - Proposed dividends not paid in the period

The Board approved an interim dividend of 2.60p per ordinary share for the six month period ended 30 April 2022, at its 18 July 2022 meeting. The interim dividend was paid on 3 November 2022.

  

 

6.   Earnings per share

 

Basic earnings per share amounts are calculated by dividing net earnings attributable to shareholders of the Parent of £50,666,000 (2022: £38,793,000) by the weighted average number of shares in issue during the period.

 

Diluted earnings per share amounts are calculated by dividing the net earnings attributable to shareholders of the Parent by the weighted average number of shares outstanding during the period plus the weighted average number of shares that would be issued on conversion of all the dilutive potential shares into shares. The Group has only one category of dilutive potential shares being share options granted to senior staff, including directors.

 

The earnings and weighted average number of shares used in the calculation are set out in the table below:

31 October 2023

31 October 2022



Weighted 



Weighted 




average 

Earnings 


average 

Earnings 



number 

per share


number 

per share


Earnings

of shares

pence

Earnings

of shares

pence


£'000

'000


£'000

'000


Basic earnings per share

50,666  

378,110  

13.40  

38,793  

378,052  

10.26  

Effect of dilutive share options

-   

2,490  

(0.09) 

-   

1,048  

(0.03) 

Diluted earnings per share

50,666  

380,600  

13.31  

38,793  

379,100  

10.23  

 

Potential shares (for example, arising from exercising share options) are treated as dilutive only when their conversion to shares would decrease basic earnings per share or increase loss per share from continuing operations.

 

7.   Non-current assets: Goodwill, other intangibles, property, plant and equipment and investment property

Goodwill

Other Intangible

Property, plant &

Investment


 

assets

Equipment

property


£'000

£'000

£'000

£'000

Net book value at 31 October 2021

15,305

19,988

91,973

597

Exchange adjustment

159

(110)

1,092

10

Additions - photobooths & vending machines

-

-

27,205

-

Additions - other assets

-

2,486

5,465

-

Additions - right of use assets

-

-

7,298

-

Additions - new subsidaries

1,652

98

11

-

Amortisation / Depreciation

-

(6,618)

(32,219)

(15)

(Impairment) / Reversal of impairment

-

(153)

3,443

-

Disposals at net book value

-

(71)

(3,178)

-

Net book value at 31 October 2022

17,116

15,620

101,090

592

Purchase price allocation adjustment

(796)

814

-

-

Net book value at 1 November 2022

16,320

16,434

101,090

592

Exchange adjustment

1

(175)

628

9

Additions - photobooths & vending machines

-

-

39,122

-

Additions - other assets

-

2,813

6,720

-

Additions - right of use assets

-

-

3,516

-

Additions - new subsidaries

3,268

49

1,496

-

Transfers

-

(121)

121

-

Transferred to non-current assets held for sale

-

-

-

(585)

Amortisation / Depreciation

-

(4,440)

(33,889)

(16)

(Impairment) / Reversal of impairment

(701)

(1,445)

1,353

-

Disposals at net book value

-

(61)

(2,033)

-

Net book value at 31 October 2023

18,888

13,054

118,124

-

 

8.   Net cash

31 October

31 October


2023

2022


£'000

£'000

Cash and cash equivalents per statement of financial position

111,091

136,185

Non-current borrowings

(50,137)

(72,365)

Current borrowings

(27,037)

(29,799)

Net Cash

33,917

34,021

 

Cash and cash equivalents per the cash flow comprise cash at bank and in hand and short-term deposit accounts with an original maturity of less than three months, less bank overdrafts.

 

Net cash is a non-GAAP measure since it is not defined in accordance with IFRS but is a key indicator used by management in assessing operational performance and financial position strength. The inclusion of items in net cash as defined by the Group may not be comparable with other companies' measurement of net cash/debt. The Group includes in net cash: cash and cash equivalents and certain financial assets (mainly deposits), less instalments on loans and other borrowings. 

 

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE FINANCIAL REPORT 

 

The Directors of the Company are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

The Directors who are making this responsibility statement and who are responsible for preparing the Annual Report, the Report of the Directors and the Group and Company financial statements in accordance with applicable law and regulations (and their respective functions) are as follows:

 Sir John Lewis OBE (Non-executive Chairman of the Board, Chairman of the Nomination Committee, and member of the Remuneration and Audit Committees); Serge Crasnianski (CEO and Deputy Chairman and member of the Executive Team); Tania Crasnianski (Executive Director and member of the Executive Team); Jean-Marc Janailhac (Non-executive Director); René Proglio (Non-executive Director and Chairman of the Audit Committee); Emmanuel Olympitis (Senior Independent Non-executive Director, Chairman of the Remuneration Committee and a member of the Audit and Nomination Committees); Françoise Coutaz-Replan (Non-executive Director and member of the Audit Committee); and Camille Claverie (Non-executive Director).

■        Select suitable accounting policies and then apply them consistently;

 

■        Make judgments and accounting estimates that are reasonable and prudent;

 

■       State whether they have been prepared in accordance with UK-adopted international accounting standards, subject to any material departures disclosed and explained in the Group and  Company financial statements respectively; and

 

■      Prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the Group and the Parent Company will continue in business.

 

Responsibility Statement of the Directors in respect of the annual financial report

■      The financial statements, which have been prepared in accordance with UK-adopted international accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

 

■      The Strategic Report and Report of Directors in the Annual Report include a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

 

Fair, balanced and understandable

 

By order of the Board

 

Sir John Lewis OBE (Non-executive Chairman)

Serge Crasnianski (Chief Executive Officer and Deputy Chairman)

 

22 February 2024

 


 

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