Interim Results Announcement

RNS Number : 7847Y

Photo-Me International PLC

04 December 2014

 



PHOTO-ME INTERNATIONAL PLC - INTERIM RESULTS ANNOUNCEMENT

EXCELLENT FIRST HALF PERFORMANCE

Photo-Me International plc ('Photo-Me" or "the Group"), the instant service equipment group, announces its results for the six-month period ended 31 October 2014. 

Results in brief:

	2014	2014(CC3)	2013	Change	Change(CC)
Turnover	£96.4m	£102.3m	£101.3m	-4.9%	0.9%
Underlying EBITDA1	£33.8m	£36.0m	£31.8m	6.0%	13.0%
Pre-tax profit	£28.8m	£30.5m	£23.0m	25.2%	32.6%
Underlying Pre-tax1	£25.3m	£27.0m	£23.0m	10.0%	17.3%
EPS(diluted)1	4.73p		4.27p	10.8%	-
Net Cash/(Debt)2	£64.7m		£63.1m4	£1.6m	-
Dividend	2.34p		1.8p	30.0%	-

1 Excluding a profit of £3.5m on the sale of land

2 As defined in note 8 to the interim report

3 At constant currency (CC)

4 At 30 April 2014

Financial Highlights

·   Turnover returned to growth of 0.9% on a constant currency basis.

·   Underlying pre-tax profits up 10% to a record £25.3m; up 17.3% in constant currency.

·   Underlying turnover and pretax growth restrained by a further decline in minilab business - effect expected to be much smaller going forward.

·   Net cash position of £64.7 million, despite increased capex and combined tax and dividend payments of £14.5m (net of sale of land).  

·   Interim dividend increased by 30% to 2.34p in line with the Group's commitment.

Operational highlights

·   Photobooth estate growth of 5.2% year-on-year, with growth above 5% in all major operating territories.

·   744 Revolution laundry units deployed at end-October - 374 retained operating units performing well.

·   Laundry manufacturing expansion remains on track.

·   Promising new product pipeline including new digital printing kiosk and supermarket carwash.

John Lewis, Non-executive Chairman, said:

"Against a global economic background which remains uncertain, and despite large adverse movements in our major trading currencies, the Group has produced another very strong performance and delivered another record profit.

Significantly, after a number of years of declining turnover due to the rapid downturn of the minilab business, this half-year saw a return to underlying top-line growth. This was principally due to a 5% expansion in photobooth numbers and also our still small - but rapidly growing - laundry business, which at the half-year comprised some 3% of Group turnover.

Our profits once again moved ahead strongly. Our estate enjoys high operational gearing and as previously described, we have made good progress on costs especially in reducing significantly the manufacturing costs of both our photobooths and laundry units, by outsourcing to China and Hungary respectively.

Our cash generation remains a key strength and the net cash position at the end of October 2014 was £64.7 million, an increase of some £1.6 million since the end of April 2014 after financing (net of sale of land) tax and dividends of £14.5million and increased capital expenditure. We are therefore increasing the interim dividend by 30%, in line with the commitment that we made at the time of our preliminary results.

The momentum in the business is good and it is performing very much in line with the Board's expectations. The Board remains confident for the outlook of the business over the rest of the year and remains optimistic about future prospects especially in relation to the opportunities for our laundry business supported by our new product development."

Enquiries:

Photo-Me International                                                                     01372 453 399

Serge Crasnianski or Françoise Coutaz-Replan   

Media

Madano Partnership                                     

Julien Cozens                                                                                     020 7593 4000

Investors:

IR Focus

Neville Harris                                                                                     07909 976044

CHAIRMAN'S STATEMENT

Results

Headline turnover declined by 4.9%, again principally due to the adverse impact of exchange rates and to the continuing decline in minilab sales, but on a constant currency basis rose by 0.9%, helped by a particularly strong performance from our Japanese business. The increase in underlying turnover is the first the Group has recorded for some time and the Board is confident this can be maintained going forward as the Group expands its laundry business in particular, which contributed £2.9 million of turnover in the half year.

Profits rose strongly - up on a reported basis by 10.0% to £25.3 million - and this was after adverse currency movements against the euro and yen amounting to £1.7 million. Underlying profits thus rose by 17.3% helped by the operational gearing inherent in the business as lower manufacturing and corporate costs continued to feed through.

Strategy

Our strategy is focused on the development of new complementary products that build upon the strength of the ID photobooth business and offer diversified revenue and profit streams for the future. This has produced the Philippe Starck-designed photobooth and the Revolution laundry units in the recent past and our new product pipeline, detailed below, is looking promising.

We have also sought to reduce our costs progressively to improve margins and cashflow. We have made strong progress on this in 2014 following the outsourcing of manufacturing of our Revolution laundry units and photobooths to Hungary and China respectively.

We are now focusing on rolling out our Revolution laundry product aggressively and will increasingly focus on developing new markets for the photobooths, facilitated by the reduction in manufacturing costs.

Dividends

In line with the commitment that we made at the time of our preliminary results in June 2014, the Board is declaring an interim dividend of 2.34 pence per share, an increase of 30% over the interim dividend of 1.8 pence per share paid last year.

The interim dividend will be paid on 14 May 2015 to shareholders on the register on 7 April 2015, with an ex-dividend date of 2 April 2015.

Outlook 

The momentum in the business is good and it is performing very much in line with the Board's expectations. The Board remains confident for the outlook of the business over the rest of the year and remains excited about future prospects especially in relation to the opportunities for our laundry business supported by our new product development".

John Lewis

Non-Executive Chairman

CHIEF EXECUTIVE'S BUSINESS AND FINANCIAL REVIEW  

BUSINESS REVIEW

Photo-Me's principal activity is the operation of unattended vending equipment, primarily photo booths and laundry units, and also digital printing kiosks, photobook makers and amusement machines. At the end of October 2014 the Group's estate comprised 44,306 units (2013: 43,404) of which photobooths comprised 60%. Growth in the overall estate was 2.1% with the Group continuing to reduce its number of bouly machines in the UK (which produce minimal revenue), but growth in the photobooth estate overall was 5.2%.

The business is international in its reach and focused on three main geographic regions at present: Continental Europe, UK & Republic of Ireland, and Asia & Rest of World. 

Geographical analysis of revenue and profit (by origin)

				Revenue			Underlying Operating profit1
Six months to 31 October		2014	2014(CC)		2013		2014	2014(CC)	2013
		£m	£m		£m		£m	£m	£m
Continental Europe		53.9	57.4		58.4		18.4	19.7	18.2
UK & Republic of Ireland		23.6	23.7		23.4		5.1	5.1	4.3
Asia & ROW		18.9	21.2		19.5		3.5	3.9	2.3
Corporate							(1.7)	(1.7)	(1.8)
		96.4	102.3		101.3		25.3	27.0	23.0
1 excluding profit on sale of property

CONTINENTAL EUROPE

This division contributed 56% (2013: 58%) of Group revenue and 73% (2013:79%) of operating profit. At the end of October 2014, 49.5% (2013: 48.0%) of the Group's estate was sited in Continental Europe. There were 21,914 (2013: 20,863) units in total of which 12,280 (2013: 11,691) were photobooths. The Group operates in nine countries, with the latest addition being Poland.

Reported revenue was 7.8% lower, but on a constant currency basis declined by 1.7%. Stripping out the effects of the continuing decline in the minilab business (previously reported under "Sales and Servicing") underlying revenue grew by 1.0%. Operating profits fell by 1.2% on a reported basis but rose by 5.5% on a constant currency basis.

The European photobooth estate increased by 5% year-on-year with the main areas for growth being France, Germany and Switzerland. The Group continues its rollout of higher-margin Starck booths and there are now 2,118 deployed across Europe.

The roll-out of the Group's laundry product - branded Revolution - predominantly utilising the same sites as the photobooth estate, continues to progress well. At the end of the half-year, cumulatively (across the Group) Photo-Me had sold 370 of these units (53 during the period) and operated 374 (an increase of 172 during the period). Going forward, it remains the Group's intention to move the operating/sale ratio towards 80/20.

The results from the units in operation in France and Belgium remain extremely encouraging with monthly takings averaging €1,500 during the period across the operating estate and the more established machines seeing  takings increase by some 22% year-on-year. In the six-month period ended 31 October 2014, the turnover of the laundry business units was £2.9m (2013: £1.6m) and represented 7% of total turnover in France and 10% in Belgium.

The Group now has laundry units in nine countries, with the most significant exposure being in France and Belgium.  The Group continues to be encouraged by potential demand in other locations like campsites, riding stables, universities  and military barracks, all of which have demand for heavy-duty laundry, and considers that prospects for the product in Portugal and Ireland are good. For example, since introducing the product in Portugal earlier in 2014 laundry revenues have grown rapidly to represent 19.1% of total Portuguese revenues currently. While the country is small in overall terms for Photo-Me it demonstrates the transforming potential of the product.

The manufacturing facilities for the laundry business are in Hungary and the gradual planned expansion of capacity is proceeding according to plan.

The Group continues to operate in Europe over 4,700 digital printing kiosks- primarily in France and Switzerland. The Group is currently upgrading the estate to the latest technology to accept all models of memory cards and other media. A brand new and very modern Starck-designed kiosk has also recently been unveiled at the photo fair in Paris. This is a new generation of kiosk with no real comparator and the Group considers the potential worldwide to be very promising; the Group's target is to launch this product in the next fiscal year.

Europe remains the centre of the Group's R&D efforts and new product development. Aside from the new digital printing kiosk (see above), a new chrome finished Starck photobooth has been developed for higher-end locations and the Group continues to develop other models, occasionally in conjunction with major brands like Evian. Work continues on the 3D figurine photobooth as well as an upgraded poster machine.

The Group is also trialing a carwash concept, targeted initially at the main supermarket chain in France, which would have some overlap in terms of location as the standalone Revolution units and utilize the same fleet of engineers. Early results are encouraging and Photo-Me is optimistic that the concept can be rolled out, but will report further on its plans for this concept in 2015.

ASIA & R.O.W.

This division contributed 20% (2013: 19%) of Group revenue and 14% (2013: 10%) of operating profit. At the end of October 2014, 18.2% (2013: 17.7%) of the Group's estate was sited in Asia & ROW. There were 9,707 (2013: 9.399) units in total of which 8,066 (2013: 7,683) were photobooths. The Group operates in eight countries, with the latest additions being Vietnam and the USA. The Group is still testing in Thailand.

The largest territory by far is Japan where performance was outstanding in the first half. Revenues were up by 6.5% (at CC) with profits (at CC) over 50% higher. The medium-term outlook for Japan is good with the Government introducing new e-ID cards (with facial photo) for every resident in Japan from 2016 to be used primarily for tax and social security purposes.

Asia is seen as a promising market for the laundry product in the medium-term and the Group plans to trial two units in Japan in early 2015.

Gradual progress continues to be made in China where turnover rose by 40% (at CC). The Group has deliberately slowed down its rollout in the last few months to concentrate on a programme of resiting unprofitable units into better locations. As a result, China made a useful contribution to profits compared with losses last year.

UK & IRELAND

This division contributed 24% (2013: 23%) of Group revenue and 20% (2013: 19%) of operating profit. At the end of October 2014, 33.4% (2013: 34.8%) of the Group's estate was sited in UK & Ireland. There were 12,685 (2013: 13,142) units in total of which 6,415 (2013: 6,071) were photobooths. Growth in photobooth numbers was 5.7% year-on-year while there was a 29% reduction on bouly/amusement machines which generate little revenue. The UK business is around 95% of the total for the division.

Turnover in the UK grew by 2.3% and profit by 20% driven in part by the growth in the photobooth estate resulting from the absorption of the Wm Morrison estate into the portfolio. There also continues to be a strong focus on costs.

There were 32 laundry units operating at the end of the period of which 18 were in Ireland, where results to date have been promising.

STATEMENT OF FINANCIAL POSITION

Shareholders' equity as at 31 October 2014 totalled £99.4 million (30 April 2014: £103.1 million), equivalent to 26.7 pence (30 April 2014: 27.8 pence) per share.

The Group's net financial position continued to improve, reporting a net cash balance of £64.7 million at the end of the period (30 April 2014: £63.1million).

RISKS AND UNCERTAINTIES

Like all businesses, the Group faces risks and uncertainties that could impact on the Group's strategy. The Board recognizes that the nature and scope of these risks can change and regularly reviews the risks faced by the Group and the systems and processes to mitigate such risks.

The principal risks and uncertainties affecting the continuing business activities of the Group were outlined in detail in the Strategic Report section of the annual report covering the year ended 30 April 2014.

In preparing this interim report for the six months ended 31 October 2014, the Board has reviewed these risks and uncertainties and considers that there have been no changes since the publication of the 2014 Annual Report.

Serge Crasnianski

Chief Executive Officer

GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 31 October 2014

	Notes	Unaudited 6 months to 31 October 2014 £'000	Unaudited 6 months to 31 October 2013 £'000	Audited Year to 30 April 2014 £'000
Revenue	3	96,360	101,335	186,598
Cost of sales		(65,725)	(71,476)	(139,400)
Gross profit		30,635	29,859	47,198
Other operating income		811	661	1,420
Administrative expenses (incl. profit on sale of land)		(2,781)	(7,629)	(18,513)
Share of post-tax profits from associates		92	70	161
Operating profit	3	28,757	22,961	30,266
Analysed as:
Operating profit before special items		25,273	22,961	30,266
Profit on sale of  land		3,484	-	-
Operating profit after special items		28,757	22,961	30,266
Finance revenue		73	93	227
Finance cost		(37)	(53)	(400)
Profit before tax	3	28,793	23,001	30,093
Total tax charge	4	(8,211)	(6,918)	(8,514)
Profit for the period	3	20,582	16,083	21,579
Other comprehensive income
Items that are or may subsequently be classified to profit and loss:
Exchange differences arising on translation of foreign operations		(3,276)	(1,174)	(4,803)
Total items that are or may subsequently be classified to profit and loss		(3,276)	(1,174)	(4,803)
Items that will not be classified to profit and loss:
Remeasurement losses in  defined benefit obligations and other post-employment benefit obligations		-	-	(67)
Deferred tax on remeasurement losses		-	-	(11)
Total items that will not be classified to profit and loss		-	-	(78)
Other comprehensive expense (net of tax)		(3,276)	(1,174)	(4,881)
Total comprehensive income for the period		17,306	14,909	16,698
Profit for the period attributable to:
Owners of the Parent		20,507	15,997	21,422
Non-controlling interests		75	86	157
		20,582	16,083	21,579
Total comprehensive income attributable to:
Owners of the Parent		17,284	14,823	16,579
Non-controlling interests		22	86	119

		17,306	14,909		16,698
Earnings per share
Basic earnings per share	6	5.51p		4.31p	5.77p
Diluted earnings per share	6	5.46p		4.27p	5.70p

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

GROUP CONDENSED STATEMENT OF FINANCIAL POSITION

as at 31 October 2014

	Notes	Unaudited 31 October 2014 £'000	Unaudited 31 October 2013 £'000	Audited 30 April 2014 £'000
Assets
Non-current assets
Goodwill	7	9,811	9,978	9,911
Other intangible assets	7	5,322	6,075	5,776
Property, plant and equipment	7	47,761	45,438	46,529
Investment property	7	492	579	516
Investments in associates		728	813	620
Other financial assets - held to maturity	8	2,249	2,405	2,334
- available-for-sale		75	81	78
Deferred tax assets		2,751	1,616	4,231
Trade and other receivables		1,779	1,698	1,831
		70,968	68,683	71,826
Current assets
Inventories		11,425	13,407	11,196
Trade and other receivables		14,179	14,061	14,345
Other financial assets - available-for-sale		83	94	86
Current tax		4	15	57
Cash and cash equivalents	8	62,542	65,774	60,996
		88,233	93,351	86,680
Assets held for sale		-	-	705
Total assets		159,201	162,034	159,211
Equity
Share capital		1,861	1,858	1,859
Share premium		6,739	6,403	6,521
Translation and other reserves		8,179	15,549	11,402
Retained earnings		82,648	77,252	83,332
Equity attributable to owners of the Parent		99,427	101,062	103,114
Non-controlling interests		1,141	1,283	1,119
Total equity		100,568	102,345	104,233
Liabilities
Non-current liabilities
Financial liabilities	8	60	121	64
Post-employment benefit obligations		3,282	3,584	3,418
Provisions		14	5	10
Deferred tax liabilities		339	120	1,381
Trade and other payables		2,948	4,214	3,840
		6,643	8,044	8,713
Current liabilities
Financial liabilities	8	122	313	240
Provisions		4,767	7,157	8,256
Current tax		8,412	7,050	5,457
Trade and other payables		38,689	37,125	32,312
		51,990	51,645	46,265
Total equity and liabilities		159,201	162,034	159,211

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

GROUP CONDENSED STATEMENT OF CASH FLOWS

for the six months ended 31 October 2014

	Notes	Unaudited 6 months to 31 October 2014 £'000	Unaudited  6 months to 31 October 2013 £'000	Audited Year to 30 April 2014 £'000
Cash flows from operating activities
Profit before tax		28,793	23,001	30,093
Finance cost		37	53	400
Finance revenue		(73)	(93)	(227)
Operating profit		28,757	22,961	30,266
Share of post-tax profits from associates		(92)	(70)	(161)
Amortisation of intangible assets		1,147	1,515	3,034
Depreciation of property, plant and equipment		7,339	7,343	14,503
(Profit)/loss on sale of property, plant and equipment		(3,519)	(51)	198
Exchange differences		(560)	(253)	(1,546)
Other items		3	100	(46)
Changes in working capital:
Inventories		(643)	(244)	1,485
Trade and other receivables		(344)	(1,344)	(2,310)
Trade and other payables		(1,222)	(1,312)	32
Provisions		(3,094)	(1,253)	143
Cash generated from operations		27,772	27,392	45,598
Interest paid		(37)	(53)	(95)
Taxation paid		(4,537)	(6,448)	(9,916)
Net cash generated from operating activities		23,198	20,891	35,587
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired		(238)	-	-
Investment in associates		-	-	(121)
Loan advanced to associates		-	(19)	-
Loan repaid by associates		-	5	-
Investment in intangible assets		(903)	(618)	(2,007)
Proceeds from sale of intangible assets		6	-	3
Purchase of property, plant and equipment		(9,568)	(8,212)	(19,153)
Proceeds from sale of property, plant and equipment, including property shown as assets held for sale		4,622	353	781
Interest received		73	90	227
Dividends received from associates		-	-	63
Net cash utilised in investing activities		(6,008)	(8,401)	(20,207)
Cash flows from financing activities
Issue of Ordinary shares to equity shareholders		220	118	237
Repayment of capital element of finance leases		(39)	(54)	(90)
Repayment of borrowings		(101)	(354)	(449)
Decrease in assets held to maturity		26	49	83
Dividends paid to owners of the Parent		(14,124)	(5,568)	(11,140)
Dividends paid to non-controlling interests		-	-	(197)
Net cash utilised in financing activities		(14,018)	(5,809)	(11,556)
Net increase in cash and cash equivalents		3,172	6,681	3,824
Cash and cash equivalents at beginning of the period		60,996	59,651	59,651
Exchange loss on cash and cash equivalents		(1,626)	(558)	(2,479)
Cash and cash equivalents at end of the period	8	62,542	65,774	60,996

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

GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY 

for the six months ended 31 October 2014

	Share capital	Share premium	Other reserves	Trans-lation reserve	Retained earnings	Attribu-table to owners of the Parent	Non- con-trolling interests	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 May 2013	1,856	6,287	2,430	14,293	72,295	97, 161	1,197	98,358
Profit for period	-	-	-	-	15,997	15,997	86	16,083
Other comprehensive expense
Exchange differences	-	-	-	(1,174)	-	(1,174)	-	(1,174)
Total other comprehensive expense	-	-	-	(1,174)	-	(1,174)	-	(1,174)
Total comprehensive income/(expense) for the period	-	-	-	(1,174)	15,997	14,823	86	14,909
Transactions with owners of the Parent
Shares issued in period	2	116	-	-	-	118	-	118
Share options	-	-	-	-	100	100	-	100
Dividends	-	-	-	-	(11,140)	(11,140)	-	(11,140)
Total transactions with owners of the Parent	2	116	-	-	(11,040)	(10,922)	-	(10,922)
At 31 October 2013	1,858	6,403	2,430	13,119	77,252	101,062	1,283	102,345
At 1 May 2013	1,856	6,287	2,430	14,293	72,295	97,161	1,197	98,358
Profit for year	-	-	-	-	21,442	21,422	157	21,579
Other comprehensive income/ (expense)
Exchange differences	-	-	-	(4,765)	-	(4,765)	(38)	(4,803)
Transfers between reserves	-	-	(556)	-	556	-	-	-
Remeasurement losses in defined benefit pension scheme and other post-employment benefit obligations	-	-	-	-	(67)	(67)	-	(67)
Deferred tax on remeasurement losses	-	-	-	-	(11)	(11)	-	(11)
Total other comprehensive income/(expense)	-	-	(556)	(4,765)	478	(4,843)	(38)	(4,881)
Total comprehensive income/ (expense) for the year	-	-	(556)	(4,765)	21,900	16,579	119	16,698
Transactions with owners of the Parent
Shares issued in the period	3	234	-	-	-	237	-	237
Share options	-	-	-	-	277	277	-	277
Dividends	-	-	-	-	(11,140)	(11,140)	(197)	(11,337)

Total transactions with owners  of the Parent	3	234	-	-	(10,863)	(10,626)	(197)	(10,823)
At 30 April 2014	1,859	6,521	1,874	9,528	83,332	103,114	1,119	104,233

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

Included in dividends of £11,140,000 is the final dividend for the year ended 30 April 2013 of £5,572,000, which was paid in November 2013.

GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY - continued

for the six months ended 31 October 2014

	Share capital	Share premium	Other reserves	Translation reserve	Retained earnings	Attributable to owners of the Parent	Non-controlling interests	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 May 2014	1,859	6,521	1,874	9,528	83,332	103,114	1,119	104,233
Profit for period	-	-	-	-	20,507	20,507	75	20,582
Other comprehensive expense
Exchange differences	-	-	-	(3,223)	-	(3,223)	(53)	(3,276)
Total other comprehensive expense	-	-	-	(3,223)	-	(3,223)	(53)	(3,276)
Total comprehensive income/(expense) for the period	-	-	-	(3,223)	20,507	17,284	22	17,306
Transactions with owners of the Parent
Shares issued in period	2	218	-	-	-	220	-	220
Share options	-	-	-	-	190	190	-	190
Dividends	-	-	-	-	(21,381)	(21,381)	-	(21,381)
Total transactions with owners of the Parent	2	218	-	-	(21,191)	(20,971)	-	(20,971)
At 31 October 2014	1,861	6,739	1,874	6,305	82,648	99,427	1,141	100,568

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

Included in dividends of £21,381,000 is the final dividend of £7,257,000 for the year ended 30 April 2014 which was paid after 31 October 2014.

NOTES TO THE INTERIM REPORT

1 Corporate information

The condensed consolidated interim financial statements of Photo-Me International plc (the "Company") for the six months ended 31 October 2014 ("the Interim Report") were approved and authorised for issue by the Board of Directors on 4 December 2014. These condensed consolidated interim financial statements comprise the Company and its subsidiaries (together the "Group") and are presented in pounds sterling, rounded to the nearest thousand.

The Company is a public limited company, incorporated and domiciled in England, whose shares are quoted on the London Stock Exchange, under symbol PHTM. Its registered number is 735438 and its registered office is at Church Road, Bookham, Surrey KT23 3EU.

Photo-Me's principal activities are the operation, sale and servicing of a wide range of instant service equipment. The Group manages these on a geographical basis with the principal operations of the Group in the United Kingdom and Ireland, Continental Europe, and Asia. The Group operates coin-operated automatic photobooths for identification and fun purposes and a diverse range of vending equipment, including digital photo kiosks, amusement machines, business service equipment and laundry machines. Sales and servicing comprises the manufacture, sale and after-sale servicing of both the above-mentioned equipment and a range of photo-processing equipment, including photobook makers and minilabs.

2 Basis of preparation and accounting policies

The condensed consolidated interim financial statements for the six months ended 31 October 2014 have been prepared in accordance with IAS 34 Interim Financial Reporting and International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") and in accordance with the Disclosure and Transparency Rules of the UK Financial Conduct Authority. The condensed consolidated interim financial statements comprise the unaudited financial information for the six months ended 31 October 2014 and 31 October 2013, together with the audited results to 30 April 2014. They do not include all of the information and disclosures required for full annual financial statements, and should be read in conjunction with the Group's financial statements for the year ended 30 April 2014. The condensed financial statements do not constitute statutory accounts within the meaning of section 434 of the UK Companies Act 2006.

The consolidated financial statements of the Group as at and for the year ended 30 April 2014 are available at www.photo-me.com or upon request from the Company's registered office at Church Road, Bookham, Surrey KT23 3EU.

The Interim Report is unaudited but has been reviewed by the auditors and their report to the Company is included in the Interim Report. The comparative figures for the financial year ended 30 April 2014 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors (i) was unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 of the Companies Act  2006.

Accounting policies and estimates

The accounting policies applied by the Group in this Interim Report are the same as those applied in the Group's financial statements for the year ended 30 April 2014, except as indicated below.

The Directors have decided to change the way segment information is presented from an operations basis (operations, sales & service) to a geographical basis as this change reflects how business performance has been presented to the Chief Operating Decision Maker (CODM) and the Board of directors with effect from 1 May 2014. The comparative segment analysis (note 3) below has been restated to reflect the new way of reporting segment information.

Presentation of specific items

The Group's income statement and segmental analysis show operating profit before and after specific items. The presentation and use of specific items is a non-GAAP measure and the use of this measure may not be comparable to similarly titled measures used by other companies. Specific items are those that in management's judgement need to be disclosed separately by virtue of their size, nature or incidence. Management determines whether an item is specific and warrants separate disclosure by considering both qualitative and quantitative factors, such as the frequency or predictability of occurrence. This is consistent with the way operating performance is presented and reported to management.

The directors believe that the presentation of the Group's results in this way is relevant to an understanding of the Group's performance, as specific items are identified by their size, nature and or incidence.

New standards adopted in the period:

There are a number of new and revised standards and interpretations, not all of which are applicable to the Group, which have been issued and are effective for the 2014 and future reporting periods. The most significant standards and interpretations which are likely to have a more material impact on the Group's financial statements were listed in the Group's 2014 Annual Report. The effect of adopting new standards for the 2015 year end has not had a material impact on this Interim Report. 

Estimates

The preparation of the condensed consolidated financial information requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the condensed consolidated financial information. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management's best judgement at the date of the financial statements. In future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the period in which the circumstances change.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were in the same areas as those that applied in the consolidated financial statements as at and for the year ended 30 April 2014.

Use of non-GAAP profit measures

The Group measures performance using earnings before interest, tax, depreciation and amortisation ("EBITDA"). EBITDA is a common measure used by a number of companies, but is not defined in IFRS.

The Group measures cash on a net cash basis as explained in note 8.

The presentation of specific items, as described above is also a non-GAAP measure.

Risks and uncertainties and cautionary statement regarding forward looking statements

The principal risks and uncertainties affecting the business activities of the Group are set out in the "Risks and Uncertainties" section of the Interim Management Report, contained within this Interim Report. The cautionary statement regarding forward looking statements is shown below.

Going Concern

The Annual Report for the year ended 30 April 2014 and the Interim Report for the six months ended 31 October 2014 have been prepared on a going concern basis. In reaching this conclusion, management has reviewed budgets, cash flow forecasts, updated forecasts and current trading results, financial resources and financing arrangements. Based on this review management is satisfied that the Group has sufficient resources to continue in operation for the foreseeable future and for at least a period of not less than 12 months from the date of this report. The Annual Report for 2014 contained a full description of the activities of the Group, its financial position, cash flows, liquidity position, facilities and borrowing position, together with the main risk factors likely to impact on the Group. This Interim Report for the six months ended 31 October 2014 provides updated information regarding business activities, financial position, cash flows and liquidity position. Accordingly management continue to adopt the going concern basis in preparing the interim condensed financial statements.

3 Segmental analysis

IFRS8 requires operating segments to be identified based on information presented to the Chief Operating Decision Maker (CODM), in order to allocate resources to the segments and monitor performance. As noted above the Directors have decided to change how the segmental analysis is reported to the CODM. Comparative information has been restated to reflect the new geographical presentation of segmental information.

The Group monitors performance at the adjusted operating profit level before special items, interest and taxation.

In accordance with IFRS8, no segment information is provided for assets and liabilities in the disclosures below, as this information is not regularly provided to the Chief Operating Decision Maker.

Seasonality of operations

Historically, the first half of the financial year is seasonally the stronger for the Group in terms of profits, and this is expected to be the case again for the current year ending 30 April 2015.


3 Segmental analysis (continued)

	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
6 months to 31 October 2014
Revenue	19,139	56,117	23,752	99,008
Inter-segment revenue	(278)	(2,256)	(114)	(2,648)
Revenue from external customers	18,861	53,861	23,638	96,360
EBITDA	5,113	23,540	6,686,	35,339
Depreciation & amortisation	(1,727)	(5,094)	(1,615)	(8,436)
Operating profit excluding associates	3,386	18,446	5,071	26,903
Share of post-tax profits from associates				92
Corporate profit excluding depreciation and amortisation *				1,812
Corporate depreciation and amortisation				(50)
Operating profit				28,757
Finance revenue				73
Finance costs				(37)
Profit before tax				28,793
Tax				(8,211)
Profit for period				20,582
Capital expenditure	1,723	6,829	1,898	10,450
Corporate capital expenditure				52
Total capital expenditure				10,502

* Included in Corporate profit is £3,484,000 profit on sale of vacant land at the Bookham head office.

Reconciliation of operating profit

	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
Operating profit before associates	3,386	18,446	5,071	26,903
Share of post-tax profits from associates	92	-	-	92
Corporate operating profit	-	413	1,349	1,762
Total operating profit	3,478	18,859	6,420	28,757

Segmental analysis (continued)

Restated	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
6 months to 31 October 2013
Revenue	19,910	61,093	23,632	104,635
Inter-segment revenue	(354)	(2,692)	(254)	(3,300)
Revenue from external customers	19,556	58,401	23,378	101,335
EBITDA	4,412	23,342	5,545	33,299
Depreciation & amortisation	(2,217)	(5,155)	(1,278)	(8,650)
Operating profit excluding associates	2,195	18,187	4,267	24,649
Share of post-tax profits from associates				70
Corporate costs excluding depreciation and amortisation				(1,550)
Corporate depreciation and amortisation				(208)
Operating profit				22,961
Finance revenue				93
Finance costs				(53)
Profit before tax				23,001
Tax				(6,918)
Profit for period				16,083
Capital expenditure	1,760	5,247	1,779	8,786
Corporate capital expenditure				113
Total capital expenditure				8,899

Reconciliation of operating profit

	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
Operating profit before associates	2,195	18,187	4,267	24,649
Share of post-tax profits from associates	70	-	-	70
Corporate operating profit/(loss)	-	315	(2,073)	(1,758)
Total operating profit	2,265	18,502	2,194	22,961

Segmental analysis (continued)

Restated	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
Year to 30 April  2014
Revenue	39,558	108,623	45,453	193,634
Inter-segment revenue	(819)	(5,691)	(526)	(7,036)
Revenue from external customers	38,739	102,932	44,927	186,598
EBITDA	10,060	31,016	10,313	51,389
Depreciation & amortisation	(4,525)	(9,838)	(2,826)	(17,189)
Operating profit excluding associates	5,535	21,178	7,487	34,200
Share of post-tax profits from associates				161
Corporate costs excluding depreciation and amortisation				(3,747)
Corporate depreciation and amortisation				(348)
Operating profit				30,266
Finance revenue				227
Finance costs				(400)
Profit before tax				30,093
Tax				(8,514)
Profit for period				21,579
Capital expenditure	3,449	12,884	4,704	21,037
Corporate capital expenditure				222
Total capital expenditure				21,259

Reconciliation of operating profit

	Asia £'000	Europe £'000	United Kingdom & Ireland £'000	Total  £'000
Operating profit before associates	5,535	21,178	7,487	34,200
Share of post-tax profits from associates	161	-	-	161
Corporate operating profit/(loss)	-	747	(4,842)	(4,095)
Total operating profit	5,696	21,925	2,645	30,266

4 Taxation

	6 months to 31 October 2014 £'000	6 months to 31 October 2013 £'000	Year to 30 April 2014 £'000
Profit before tax	28,793	23,001		30,093
Total taxation charge	8,211	6,918		8,514
Effective tax rate	28.50%	30.0%		28.3%

On 19 March 2014 ,the Chancellor announced the budget for 2015 and confirmed that the rate of corporation tax for the year ending 31 March 2015 will be 21% and 20% for the year ending 31 March 2016 and the following years. This legislation was substantively enacted at the balance sheet date.

The tax charge in the Group Income Statement is based on management's best estimate of the full year effective tax rate based on expected full year profits to 30 April 2015. The full year effective tax rate includes the impact to the Group Income Statement of calculating UK deferred tax balances at the reduced UK tax rate of 20%.

5 Dividends

Year ending 30 April 2015

The Board has declared an interim dividend of 2.34p per share for the year ending 30 April 2015, to be paid on 14 May 2015 to shareholders on the register at 7 April 2015. The ex-dividend date is 2 April 2015. These condensed consolidated financial statements do not reflect this proposed dividend.

Year ended 30 April 2014

The Board declared an interim dividend of 1.8p per share for the year ended 30 April 2014, amounting to £6,690,000, which was paid on 6 May 2014. The Board proposed a final dividend of 1.95p per share, amounting to £7,257,000, which was approved by shareholders at the Annual General Meeting on 23 October 2014 and was paid on 6 November 2014. A special dividend of 2.00p per share, amounting to £7,434,000, was paid on 15 May 2014.

Year ended 30 April 2013

The Board declared an interim dividend of 1.5p per share for the year ended 30 April 2013, which was paid on 7 May 2013 amounting to £5,568,000. The Board proposed a final dividend of 1.5p per share, which was approved at the Annual General Meeting held on 12 September 2013 and was paid on 7 November 2013, amounting to £5,572,000. A special dividend of 3.0p per share was paid on 8 March 2013 amounting to £10,910,000.

6 Earnings per share

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

	6 months to 31 October 2014	6 months to 31 October 2013	Year to 30 April 2014
Basic earnings per share	5.51p	4.31p	5.77p
Diluted earnings per share	5.46p	4.27p	5.70p
Earnings available to Ordinary shareholders (£'000)	20,507	15,997	21,422
Weighted average number of shares in issue in the period
- basic ('000)	371,981	371,374	371,506
- including dilutive share options ('000)	375,572	375,060	375,836

Alternative earnings per share

The table below reconciles earnings per share (EPS) and diluted earnings per share and (DPS) before and after specific items. There were no specific items in the six months ended 31 October 2013 and the year ended 30 April 2014.

October 2014	£'000	EPS	DPS
Earnings available to Ordinary shareholders	20,507	5.51p	5.46p
Specific items net of tax	2,752	0.74p	0.73p
Earnings after specific items	17,755	4.77p	4.73p
Weighted average number of shares in issue in period-basic ('000)	371,981
'- including dilutive share options ('000)	375,572

Specific items for the six months ended 31 October 2014 relate to the sale of vacant land at the Bookham head office site, the contract for which was exchanged on 5 June 2014 with cash settlement on completion, one month later, for £4,200,000.

7 Non-current assets - intangibles, property, plant and equipment and investment property

	Goodwill £'000	Other intangible assets   £'000	Property, plant and equipment £'000	Investment property £'000
Net book value at 1 May 2013	9,980	6,735	45,334	723
Exchange adjustment	(2)	(1)	(438)	-
Additions
- photobooths and vending machines	-	-	8,008	-
- research and development costs	-	583	-	-
- other additions	-	35	273	-
Transfers	-	238	(238)	-
Depreciation provided in the period	-	(1,515)	(7,199)	(144)
Net book value of disposals	-	-	(302)	-
Net book value at 31 October 2013	9,978	6,075	45,438	579
Net book value at 1 May 2013	9,980	6,735	45,334	723
Exchange adjustment	(69)	(147)	(1,844)	(17)
Additions
- photobooths and vending machines	-	-	17,327	-
- research and development costs	-	1,125	-	-
- other additions	-	882	1,925	-
Transfers	-	220	(220)	-
Transfer to assets held for sale	-	-	(705)	-
Depreciation provided in the period	-	(3,034)	(14,313)	(190)
Net book value of disposals	-	(5)	(975)	-
Net book value at 30 April 2014	9,911	5,776	46,529	516
Net book value at 1 May 2014	9,911	5,776	46,529	516
Exchange adjustment	(100)	(204)	(1,339)	(24)
Additions
- photobooths and vending machines	-	-	8,847	-
- research and development costs	-	550	-	-
- other additions	-	353	752	-
New subsidiaries	-	-	709	-
Depreciation provided in the period	-	(1,147)	(7,339)	-
Net book value of disposals	-	(6)	(398)	-
Net book value at 31 October 2014	9,811	5,322	47,761	492

Included in additions for property, plant & equipment are finance lease additions of £31,000, for the six month period ended 31 October 2014, £69,000 for the six month period ended 31 October 2013 and £99,000 for the year ended 30 April 2014.

8 Net cash

	31 October 2014 £'000	31 October 2013 £'000	30 April 2014 £'000
Cash and cash equivalents per the statement of financial position	62,542	65,774	60,996
Financial assets - held to maturity	2,249	2,405	2,334
Financial assets - available for sale	83	89	85
Non-current instalments due on bank loans	-	(50)	-
Current instalments due on bank loans	(68)	(241)	(177)
Non-current finance leases	(60)	(71)	(64)
Current finance leases	(54)	(72)	(63)
Net cash	64,692	67,834	63,111

At 31 October 2014, £2,249,000 (31 October 2013: £2,405,000, 30 April 2014: £2,334,000) of the total net cash comprised bank deposit accounts that are subject to restrictions and are not freely available for use by the Group.

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 loans and other borrowings.

The tables below, which are not currently required by IFRS, reconcile the Group's net cash to the Group's statement of cash flows. Management believes the presentation of the tables will be of assistance to shareholders.

	1 May  2013  £'000	Exchange difference  £'000	Other  movements  £'000	Cash flow  £'000	31 October  2013  £'000
Cash and cash equivalents per statement of financial position	59,651	(558)	-	6,681	65,774
Financial assets - held to maturity	2,461	(5)	-	(51)	2,405
Financial assets - available for sale	86	1	-	2	89
Loans	(646)	1	-	354	(291)
Leases	(133)	5	(69)	54	(143)
Net cash	61,419	(556)	(69)	7,040	67,834
	1 May 2013  £'000	Exchange difference  £'000	Other movements  £'000	Cash flow  £'000	30 April  2014 £'000
Cash and cash equivalents per statement of financial position and cash flow	59,651	(2,479)	-	3,824	60,996
Financial assets - held to maturity	2,461	(44)	-	(83)	2,334
Financial assets - available for sale	86	(5)	-	4	85
Loans	(646)	20	-	449	(177)
Leases	(133)	15	(99)	90	(127)
Net cash	61,419	(2,493)	(99)	4,284	63,111
	1 May  2014  £'000	Exchange difference  £'000	Other movements  £'000	Cash flow  £'000	31 October 2014  £'000
Cash and cash equivalents per statement of financial position and cash flow	60,996	(1,626)	-	3,172	62,542
Financial assets - held to maturity	2,334	(57)	-	(28)	2,249
Financial assets - available for sale	85	(4)	-	2	83
Loans	(177)	8	-	101	(68)
Leases	(127)	5	(31)	39	(114)
Net cash	63,111	(1,674)	(31)	3,286	64,692

Other movements for finance leases relate to new finance leases taken out in the period.

9 Related parties

The Group's significant related parties are disclosed in the 2014 Annual Report and include its associates, its pension funds and the Company's Directors. During the 6 months ended 31 October 2014, there were no new related parties and no additional related party transactions have taken place that have materially affected the financial position or performance of the Group. In addition there were no material changes in the nature and relationship of transactions with related parties to those identified in the 2014 Annual Report.

10 Business combinations

During the period the Group acquired 100% of the share capital and voting interests of Copyphot SA, a small company operating photobooths in Switzerland. Values shown in these financial statements and in the table below for the assets and liabilities acquired are provisional.

Provisional summary of assets and liabilities acquired	£'000
Property, plant & equipment	709
Inventory	52
Receivables	53
Cash & cash equivalents	164
Total assets	978
Trade & other receivable including current tax	576
Net assets acquired	402
Cash consideration	402
Less cash acquired	164
Price paid net of cash acquired	238

11 Alternative performance measures

Management assess the performance of the Group using a variety of performance measures. Internally management discuss the Group's performance on an "adjusted basis", that is to say taking into accounts "specific items". The Group's income statement and segmental analysis show operating profit before and after specific items. The presentation and use of specific items are a non-GAAP measure and the use of this measure may not be comparable to similarly titled measures used by other companies. Specific items are those that in management's judgement need to be disclosed separately by virtue of their size, nature and or incidence. Management determines whether an item is specific and warrants separate disclosure by considering both qualitative and quantitative factors, such as the frequency or predictability of occurrence. This is consistent with the way operating performance is presented and reported to management.

The directors believe that the presentation of the Group's results in this way is relevant to an understanding of the Group's performance, as specific items are identified by their size, nature or incidence.

The impact of specific items on operating profit is detailed in note 3, segment analysis.

Consistent with the above, management also calculate earnings per share (EPS) and diluted earnings per share (DPS).  Management uses this as one factor in determining dividend policy.

The table below reconciles EPS and DPS before and after specific items. There were no specific items in the six months ended 31 October 2013 and the year ended 30 April 2014.

October 2014	£'000	EPS	DPS
Earnings available to Ordinary shareholders	20,507	5.51p	5.46p
Specific items net of tax	2,752	0.74p	0.73p
Earnings after specific items	17,755	4.77p	4.73p
Weighted average number of shares in issue in period- basic ('000)	371,981
'- including dilutive share options ('000)	375,572

Specific items for the six months ended 31 October 2014, relate to the sale of vacant land at the Bookham head office site, the contract for which was exchanged on 5 June 2014 with cash settlement on completion, one month later, for £4,200,000.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF-YEARLY FINANCIAL REPORT

We confirm that to the best of our knowledge:

• the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

• the Interim Management Report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

By order of the Board

John Lewis (Non-executive Chairman)

Serge Crasnianski (Chief Executive Officer and Deputy Chairman)

4 December 2014

INDEPENDENT REVIEW REPORT TO PHOTO-ME INTERNATIONAL PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 October 2014 which comprises the Group condensed statement of comprehensive income, the Group condensed statement of financial position, the Group condensed statement of cash flows, the Group condensed statement of changes in equity and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 October 2014 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.

Martin Newsholme

for and on behalf of KPMG LLP
Chartered Accountants 

1 Forest Gate

Brighton Road

Crawley

RH11 9PT

4 December 2014

Note:

a) The maintenance and integrity of the Photo-Me International plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

CAUTIONARY STATEMENT ANDDISCLAIMERS

This Interim Financial Report is addressed to the shareholders of Photo-Me International plc and has been prepared solely to provide information to them. This report is intended to inform the shareholders of the Group's performance during the 6 months to 31 October 2014. It has been prepared to provide additional information to shareholders to enable them to access the Group's strategies, performance and the potential for those strategies to succeed. It should not be relied upon for any other purpose.

This Interim Financial Report contains certain forward-looking statements which are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates. It is believed that the expectations reflected in this report are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently expected. No assurances can be given that the forward looking statements in this Interim Financial Report will be realised. The forward-looking statements reflect the knowledge and information available at the date of preparation.

DISTRIBUTION OF REPORT

This Interim Report is released to the London Stock Exchange. It may be viewed and downloaded from the Company's Investor Relations section on the website www.photo-me.co.uk.

Shareholders and others who require a copy of the report may obtain a copy by contacting the Company Secretary at the Company's registered office.

Photo-Me International plc

Church Road

Bookham

Surrey KT23 3EU

Tel: [phone]

Fax: [phone]

e-mail: [e-mail]

 

END

 

 

IR FSUFWDFLSEFE