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Photo-Me downgrades 2019 profit guidance amid Japanese woes

By BFN News | 08:10 AM | Wednesday 30 May, 2018

Identification technology and laundry group Photo-Me downgraded its 2019 profit guidance, blaming a market over-supply in its Japanese photo identification business. The company said it expected pre-tax profit in the year through April to be at least £44 million, which included a reorganisation cost in Japan and was below current market expectations. The forecast excluded any potential revaluation gains related the group's investment in Max Sight Group. Underlying pre-tax profit, which stripoped out one-off times, would be at a similar level to the financial year ending through April 2018. 'Although no final decision has yet been made, the board currently expects that it will maintain the group's existing dividend policy at the full year results,' Photo-Me said. For its 2018 financial year just ended, the company said it expected to post revenue growth of 6% on a constant currency basis. Pre-tax profit would be 'broadly in line' with market expectations and include a £3.7m one-off investment gain related to Max Sight Group. The laundry business continued to perform well, with revenue from laundry operations jumping 49% to £32.3m, Photo-Me said. At 30 April, the company had net cash of around £26m, reflecting capital expenditure slightly ahead of the prior year, investment in laundry acquisitions and the restructuring of Photo-Me Retail. At 8:10am: (LON:PHTM) PhotoMe International PLC share price was -46.6p at 104.8p Story provided by

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