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Photo-Me better Q3

By BFN News | 07:25 AM | Friday 08 March, 2013

Photo-Me said profitability overall in Q3 has been substantially better than for the prior year period, and year to date it has made strong progress. Revenue in the Operations' division has been at a very similar level to the same period last year, but profitability has moved ahead strongly, helped by exceptional performances in Japan and Germany. Costs have again been well controlled at a central level, but more importantly, savings resulting from lower costs in manufacturing are progressively feeding through. In addition, at the end of January 2013, the project to move Continental Europe onto a single logistics platform was completed and it is expected that this will generate significant additional savings in stock, space and personnel in the next financial year and beyond. The roll-out of the Starck-designed photobooths is gathering momentum, and the booths are delivering the expected improvement in returns. Importantly, the first newly-designed laundry machines - now branded 'Revolution' - have begun to be delivered, and underwrite the plans for a rapid expansion of the estate. The Group is trialling a number of other new products as well as focusing on gradually expanding its footprint into new territories and will further update the market on progress in these areas at the time of the final results. The downsized Sales and Servicing division has again suffered a decline in turnover but is no longer loss-making, due to the continued restructuring programme and change in management structure. Cash generation remains very strong and the Group underlined its commitment to return cash to shareholders by the announcement on 4 February 2013 of a special dividend of 3 pence per share, amounting to £11 million, which is being paid today. Movements in exchange rates have adversely affected profits before tax by approximately 8% for the nine-month period ended 31 January 2013. Despite this, the Board continues to anticipate that the Group will achieve market expectations for the current year and believes that the Group is strongly placed for the future. Story provided by

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