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Photo-Me to remove almost 4,900 photobooths as sales slump

By BFN News | 08:04 AM | Wednesday 09 December, 2020

Photobooth and laundry services group Photo-Me International said it expected its first-half revenue to fall 26% as the pandemic shrinks footfall in busy locations. The company also said it planned to remove 4,900 photobooths across the globe to adjust to the drop in demand. Photo-Me's machines were typically situated in travel hubs and shopping centres, hit by ongoing government lockdown restrictions and travel constraints. Its children's ride businesses also had been hit hard. 'The group saw a slight return of consumer activity as countrywide and regional lockdowns were eased across Europe in the summer,' Photo-Me said. 'However, since then the increase in infection rates resulted in new national and local government lockdown measures being implemented, and revenue has once again been significantly impacted.' On a more positive note, the company's Revolution laundry machines unit had remained relatively resilient, with average revenue down just 2% year-on-year. Photo-Me said said it expected its pre-tax profit for the 18 months through October 2020 to be around £0.5 million, excluding the impact of IFRS16 accounting measures. It said it expected to remove about 3,000 photobooths in the UK, 1,000 units in continetal Europe, 700 units in China and 200 units in South Korea. 'Together, these programmes will reduce the number of photobooths in operation by around 17%, successfully streamlining the business and aligning its vending estate to expected lower consumer activity in the short to medium term,' the company said. On funding, Photo-Me said it had breached a covenant relating to a loan from BNP Paribas, though the French bank had waived it owing to the exceptional circumstances created by the pandemic. Looking forward, the company said it had budgeted for revenue of £175 million in the 2021 financial year and had estimated a pre-tax profit of £9 million before any exceptional items. At 8:04am: (LON:PHTM) PhotoMe International PLC share price was 0p at 54.7p Story provided by

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