Photo-Me International the instant service equipment group, reveals that revenue was up 10.5% to £122.2m and reported profit before tax was £32.9m, up 6.1% for the year to end of October 2017.
Reported EBITDA was up 11.4% and EBITDA margin expanded to 36.7%, up 300bpts.
Net cash was £47.1m, reflecting a total of £68.6m in higher dividend payments (£34.6m) and investments in future growth (£34m) since 31 October 2016, up £7.9m from £39.2 million at 30 April 2017
The interim dividend was increased by 20.1% to 3.71p per Ordinary share, in line with the stated progressive dividend policy.
The group operates in three key business areas: identification, laundry and printing kiosks. Laundry remains the primary growth driver of the group. Total laundry revenues were up 75% to £17.3m (H1 2017: £9.9m)
Commenting on the results, Serge Crasnianski, CEO, said: "The Group has once again performed strongly, with good operational progress made against our strategy to diversify operations.
“In the first half, further excellent progress was achieved in the deployment of laundry operations, a key growth driver for the group. As a result, the board anticipates that laundry revenue will become an increasing proportion of total group revenue as we get closer to achieving our mid-term deployment targets."
Numbers in context
Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors:
“The numbers coming out of the company today were pretty much in line with expectations. Its products, which also include children’s rides, photographic development and printing equipment, and laundry are highly visible and the 47,000 plus units have provided the group with good cash flow leading to improving dividend stream.
“Investors should acknowledge that in today’s update, the group reference that the dividend was up 20.1% to 3.71 pence.
He added: “The company is confident that a significant proportion of future revenue will come from its laundry business. Interested investors should note that discussions with the UK Passport office regarding the new online passport service and testing had had a positive outcome.
“We therefore recommend the shares as a ‘buy’ for those with a balanced portfolio and willing to accept a higher level of risk.”
In general, the market was not overly impressed with Photo-Me’s numbers – the company’s share price dropped just over 1.2% in late morning trading to 184.2.