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Photo-Me warns of profit slump as Covid-19 hits revenue; triggers provisions

By BFN News | 07:52 AM | Wednesday 10 June, 2020


Photo booth and laundry services supplier Photo-Me International warned of a drop in annual profit owing to a slump in revenue and provisions blamed on the Covid-19 crisis. Revenue for the year through April was seen falling 5.5% following a deterioration in trading conditions in March and April. Pre-tax profit was seen falling to between £10m and £14m, including provisions of £14m-to-£18m. Photo-Me said its underlying profit, excluding the provisions, was expected to slump to £28m, down from £42.6m on-year. Cost saving measures had included furloughing employees and withdrawal of the company's interim dividend. 'Since the period end, total group revenue has remained at the lower levels seen in March and April,' Photo-Me said. 'The ongoing governmental travel bans and restrictions on the movement of people continue to reduce demand significantly for photo ID via photobooths as well as the use of children's rides, which together account for approximately 63% of group revenue.' 'The board is reasonably confident that as lockdown restrictions are eased, consumer demand will return; however, it is likely it will take time to recover to pre-Covid-19 levels' 'The group continues to diversity its operations through its laundry and KIS Food business areas.' 'The board continues to closely monitor the Covid-19 situation as lockdown measures are eased and will review its options and take further action where possible to restructure the business and align operations to the current market conditions and consumer activity levels.' Story provided by StockMarketWire.com

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