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Photo-Me Intnl. (PHTM)

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Tuesday 21 June, 2016

Photo-Me Intnl.

PRELIMINARY ANNOUNCEMENT

RNS Number : 7509B
Photo-Me International PLC
21 June 2016
 

 

 

PHOTO-ME INTERNATIONAL PLC - PRELIMINARY ANNOUNCEMENT

 

Record profits - Ordinary dividend increased by 20%, special dividend of £10.6million

 

Photo-Me International plc ("Photo-Me" or "the Group"), the instant-service equipment group, announces its results for the year ended 30 April 2016. 

 

Results highlights:

 

 

2016†

2016

2015

Change†

Change

Revenue

£188.4m

£184.0m

£177.2m

+6.3%

+3.8%

Underlying EBITDA*

£58.4m

£56.7m

£51.8m

+12.7%

+9.5%

Underlying Pre-tax Profit*

£41.3m

£40.1m

£35.0m

+18.0%

+14.6%

PBT**

£41.3m

£40.1m

£38.5m

+7.3%

+4.1%

Net Cash ***

 

£62.4m

£60.7m

 

+2.8%

Underlying EPS (diluted)*

 

7.72p

6.70p

 

+15.2%

Final Ordinary Dividend per Share

 

3.285p

2.54p

 

+29.3%

Aggregate Annual Ordinary Dividend per share

 

5.86p

4.88p

 

+20.1%

Special Dividend per share

 

2.815p

-

 

 

 

† At constant currency (CC)

   Average rates of exchange used: £/€ 1.35 (2015: 1.29)     £/Yen 178.08 (2015:177.31)

* Excluding profit on sale of land of £nil (2015: £3.5m)

** Including profit on sale of land of £nil (2015: £3.5m)

***As defined in note 7

 

Financial Highlights

 

·     Revenue up +3.8% at £184.0 million and +6.3% at CC

·     Underlying EBITDA 9.5% higher and margin increased to 30.8% 

·     Underlying Pre-tax Profit of £40.1 million, up 14.6%

·     Net cash position of £62.4 million

·     Increase of 20% in the annual ordinary dividend

·     Special dividend amounting to £10.6 million

  

 

Operational Highlights

 

·    Photobooth performance boosted by first stage of My Number programme in Japan

·    Agreement signed with Moneygram for money transfer capability in booths

·    Agreement signed with ANTS in France for driving licence applications direct from booths

·    Development of 3D photo technology for security applications

·    Further good progress in Revolution rollout and returns remain very satisfactory

·    Continue the roll out of the launderette concept in Europe

·    Production of the smaller Revolution to commence in September 2016

·    New digital photo printing kiosks showing promise

 

 

John Lewis, Non-executive Chairman, said:

 

"It has been another strong year for the Group with a 14.6% increase in reported underlying pre-tax profits to a record £40.1million."

 

"Our cash generation remained strong and we improved our net cash balance to £62.4 million despite investments and dividend payments totalling £43.4 million during the year. We are recommending a final dividend of 3.285 pence per share to give a total dividend for the year of 5.86 pence, an increase of 20% and in addition, a special dividend of 2.815 pence per share representing an additional distribution amounting to £10.6 million. The aggregate dividend is in line with the undertaking that we gave last year. Moreover, the Group is committing to increase the ordinary dividend by 20% for the next two financial years."

 

"Operationally, the business has made strong progress against a global economic backdrop that has been challenging. The expansion of our Revolution laundry product remains on track and returns stay encouraging. The addition of both smaller Revolutions and the introduction of launderettes will add to the momentum in this business. Volumes in our photobooth estate have been boosted by the gradual rollout of the new Japanese identity card (My Number) and new agreements were signed with Moneygram and ANTS which should further enhance returns in the medium-term. Prospects for both our leading products remain extremely positive and the development and addition of 3D capability within the booths is an exciting feature for the medium-term."

 

"Whilst uncertainties remain, in particular in relation to currency, the Board anticipates another year of good growth."

 

 

Enquiries:

 

Photo-Me International

01372 453 399

Serge Crasnianski or Gabriel Pirona

 

 

 

Media

 

Madano Partnership

 

Matthew Moth / Kimberley Richardson

020 7593 4000

 

 

Investors

 

IR Focus

 

Neville Harris

07909 976044

 

 

CHAIRMAN'S STATEMENT

 

Results

At constant currency, Group Revenue was 6.3% higher over the year with a 3.8% improvement on a reported basis. Group reported underlying EBITDA increased by 9.5% during the period, to £56.7m, with underlying EBITDA margins improving to 30.8% from 29.2% in 2015.

Strategy

Our stated strategy is to use the significant cash flow generated from our long-established photobooth business to develop new and complementary products which will drive our future growth. Alongside this, we are keen to penetrate new geographic markets, which offer the potential of long-term growth. It is also part of our strategy to be financially independent as far as we can be, and to concentrate on increasing our returns to shareholders.

 

We have continued to make good progress with this strategy. The expansion of our Revolution laundry product is proceeding in line with our plan and is producing strong returns. Our photobooth business is expanding gradually into new markets and our product development pipeline - including the enhanced security technology in the photobooths - is promising. The strength of our cash flow is allowing us both to finance the capital expenditure programme and to raise returns to shareholders by way of dividends. 

 

Dividends

Last year we stated that we intended to increase the annual dividend by 10%p.a. over the following three years. We also stated that any net cash on the balance sheet at April 30 in each year in excess of £50m would be available to shareholders as a special dividend, provided that the business had no immediate needs for the capital, for example acquisitions or specific investments.

 

We are therefore pleased to confirm that the proposed total annual dividend of 5.86 pence per share and the proposed special dividend of 2.815 pence per share reflect the commitment made last year. We have decided to increase the returns through ordinary dividends following feedback received from our investors.

 

We are also committing to increase the ordinary dividend by 20% for the next two financial years.

 

If approved at the Annual General Meeting on 20 October 2016, the final dividend and the special dividend will be paid on 10 November 2016 to shareholders on the register at the close of business on 7 October 2016. The ex-dividend date will be 6 October 2016.

 

Current trading and Outlook 

 

Whilst uncertainties remain, in particular in relation to currency, the Board anticipates another year of good growth.

  

John Lewis

Non-executive Chairman

 

 

OVERVIEW OF THE YEAR

 

 

 

Revenue

Underlying Operating profit*

Year to 30 April

2016

2016

2015

Change †

2016

2016

2015

Change

 

£m

£m

£m

%

£m

£m

£m

%

Continental Europe

97.9

93.7

94.3

+3.8%

25.3

24.1

22.0

+15.0%

UK & Republic of Ireland

45.9

45.8

44.7

+2.7%

8.0

8.0

8.4

-4.8%

Asia & ROW

44.6

44.5

38.2

+16.8%

10.7

10.7

6.9

+55.1%

 

188.4

184.0

177.2

+6.3%

44.0

42.8

37.3

+18.0%

Corporate

 

 

 

 

(3.0)

(3.1)

(2.5)

 

 

 

 

 

 

41.0

39.7

34.8

+17.8%

† 2016 trading results of overseas subsidiaries converted at 2015 exchange rates.

*excluding profit on sale of land in 2015

 

 

 

 

 

Vending units

 

               2016

 

           2015

 

Change

Continental Europe

22,800

50%

22,400

50%

+1.8%

UK & Republic of Ireland

12,500

28%

12,400

28%

+0.8%

Asia & ROW

10,200

22%

9,800

22%

+4.1%

Total

45,500

100%

44,600

100%

+2.0%

  

CONTINENTAL EUROPE

 

This division contributed 51% of Group revenue (2015: 53%) and 61% of underlying operating profit (2015:63%). At the end of April 2016, 50% (2015: 50%) of the Group's estate was sited in Continental Europe. There were 22,800 (2015: 22,400) units in total of which 12,500 (2015:12,400) were photobooths. The Group operates in nine countries.

 

Reported revenue was 0.6% lower than last year, but on a constant currency basis increased by 3.8%. Operating profits increased by 9.5% on a reported basis, due to the reduction in siting costs and continued focus on operating costs reduction.

 

The European photobooth estate increased by 0.5% year-on-year with the main areas for growth being France, Germany and Switzerland. The Group continues its roll-out of higher-margin Starck booths and there are now 3,780 deployed across Europe, an increase of 567 over the year.

 

The Group continues to assess the price increases in its photobooth estate and is now running trials in two countries - Switzerland and the Netherlands.

 

The roll-out of the Group's main laundry product - branded Revolution - predominantly using the same sites as the photobooth estate, continues to progress well.

 

 

Total (including UK & Ireland)

2016

2015

2014

Change

Owned and operated (total)

1,411

644

202

+119%

Sold (cumulative total at year end)

737

440

317

+68%

Ave. revenue per owned unit (€)

15,382

14,396

13,887

+7%

 

 († Average calculated only on machines in France, Ireland and Portugal with full month takings)

 

The results from the units in operation in France, Ireland and Portugal remain extremely encouraging with takings during the period averaging €1,282 per unit per month across the operating estate. For the full year, the turnover of the entire laundry business units was £11.8m (including a contribution of £1.2m from Fowler(UK)) (2015: £6.3m), which has more than trebled since 2014. Laundries represented 13% of total turnover in France, 47% in Ireland and 52% in Portugal.

 

The Group now has laundry units in twelve countries globally, with the most significant coverage being in France, Belgium, Portugal and Ireland. Besides supermarket locations, the Group continues to be encouraged by potential demand in sites like campsites, universities and military barracks, all of which have demand for heavy-duty laundry capability. The product has continued to perform extremely well in Portugal and in Ireland where an agreement with Tesco (Ireland) means that the number of operated units in that country should increase to 120 over the next 12 months. The profit in these two countries has climbed rapidly since the units were first introduced in those markets in 2014 and is expected to approach €1m in the coming year.

 

The Group continues to target 6,000 laundry units by 2020 and as the business grows, it is expected that the majority of these will be owned/operated. The Group remains focused on ensuring that only the best locations are targeted for the machines, given the investment and logistics involved and the speed of the roll-out programme is dictated by the availability of suitable venues.

 

The Group has been trialling a number of launderettes in towns across France and Belgium over the past three years. The vast majority of these have achieved the desired return on capital and the Group now considers it appropriate to roll out the concept more aggressively, targeting towns where there is no large supermarket nearby and where competition within the town is limited. The stores (all short leaseholds) again will benefit from leading edge design and are expected to cost around €32,000 each to equip fully. The Group's ambition is to develop in that segment rapidly and reach a sizeable base of locations.

 

Photo-Me also announced the development of "Revolution 2", which would only have a footprint of 5sqm compared with the 10sqm of existing units. One principal advantage of these smaller units is that they avoid planning restrictions and in addition may be attractive in markets where space is more limited. Production of these units is expected to commence fully in September 2016.

 

The expansion of the Revolution estate continues to represent an opportunity for a material increase in Group revenue and, with an attractive cash generation and EBIT profile, they provide an opportunity to enhance returns to shareholders in future years.

 

The Group continues to operate over 5,000 digital printing kiosks, primarily in France and Switzerland, and is currently upgrading the estate to the latest technology to accept all models of memory cards and other media. The new range of Starck-designed kiosks are gradually being introduced and good progress is being seen with the Speedlab Cube in particular. The Group considers the potential worldwide to be very promising over the medium-term.

 

Europe remains the centre of the Group's R&D efforts and new product development. The Group is increasingly focusing on new technologies, like 3D digital photos and is investing with the aim of becoming a leader in the field. One of the targets is to develop enhanced ID security standards through  3D technology which the Group believes will be increasingly attractive to Governments. The Group has already introduced biometric standards into a number of its booths in Germany, Switzerland and China and the addition of 3D photo capture would represent a major step forward in security. Photobooths are therefore progressively being enabled digitally and in February 2016, the Group announced that it had obtained the first agreement with ANTS (National Agency of Secure Documents in France) to allow the delivery of a digitized e-photo and signature for the purposes of driving licence application with the document being sent from the photobooths via a secure server. The Group has some 7,800 units in France and the entire estate will be enabled rapidly. Similarly, in September 2015 Photo-Me signed a five-year agreement with Moneygram under which money transfer services would be made available in its booths worldwide, beginning in France.

 

The Group is still trialling its carwash concept and Photo-Me will report further on its plans for this concept at the end of the next financial year.

 

ASIA & R.O.W.

 

This division contributed 24% of Group revenue (2015: 22%) and 27% of operating profit (2015: 20%). At the end of April 2016, 22% (2015: 22%) of the Group's estate was sited in Asia & ROW. There were 10,200 (2015: 9,800) units in total of which 8,600 (2015: 8,200) were photobooths. Growth in photobooths units was 4.6% year on year, mainly deploying machines in Japan in order to respond to the increased demand created by the roll-out of a new photo ID. The Group operates in six countries, with the latest addition being the USA.

 

The largest territory by size of the machine estate and revenue by far is Japan where performance was outstanding. Revenues were up by 16% with profits 69% higher.

 

Performance here has benefited from the first stage of adoption of the new ID card regulation which came into force in 2016. Under this system all Japanese citizens may apply to be issued with their own personal 12-digit number (My Number) which will in due course require an accompanying photo ID card. The system is not currently compulsory, but brings a significant number of administrative benefits to both the private user and the public sector and widespread adoption is expected.

 

Owing to technical and administrative problems at local government level, the implementation of this plan to date has not gone as smoothly as planned, after a strong start, but the Japanese government is committed to the programme and is increasing financial resource to ensure swifter issuance. Based on the official roadmap issued by the Japanese administration, it is expected that by March 2019, 87 million cards will be issued, while the scope and functionality of the card will be expanded, although the speed of issuance will be reliant upon promotion of the scheme by the Japanese government. Ultimately the card will become the Japanese photo ID card, branded One Card. This is likely to lead to a steady and substantial increase in photobooth volumes over the period but, due to the uncertainty over timing, we have not included any profits related to My Number in our forecast for the current year.

 

Gradual progress continues to be made in China where turnover rose by 24% (at CC) with a good increase in profitability.

  

UK & IRELAND

This division contributed 25% of Group revenue (2015: 25%) and 20% of operating profit (2015: 24%). At the end of April 2016, 28% (2015: 28%) of the Group's estate was sited in UK & Ireland. There were 12,500 (2015: 12,400) units in total of which 6,600 (2015: 6,400) were photobooths. Growth in photobooth numbers was 2.9% year-on-year.

 

In a market background remaining difficult, the turnover in the UK and Ireland increased by +2.5% (CC) due to the resilience of the photographic business in the UK and the fast expansion of the laundry business in Ireland. Profits contracted by -4.8% reflecting the increase in depreciation and some site costs.

 

The Group's progress in rolling out its Revolution laundries in Ireland has been good and is covered in the Continental Europe section (above).

 

 

STRATEGIC OVERVIEW

 

What we do

 

Photo-Me's current principal activity is the operation of unattended vending equipment aimed primarily at the consumer market. The largest part of this estate currently comprises photobooths and digital printing kiosks, with the balance comprising laundry units, amusement machines (including kiddie rides) and business service equipment.

 

Photo-Me owns these units and pays the site owner a fixed fee or a commission based on turnover. This commission varies by country and location. Photo-Me is responsible for collecting the takings from, and the service and maintenance of, the units and employs a network of engineers to perform these tasks.

 

To further its diversification, the ambition of the Group is to expand the laundry business to all segments (supermarket car parks Revolution units, town centre launderettes, B2B equipment sales and rentals), as well as aggressively move into offering security management solutions to governments leveraging 3D identification technology and secured digital transmission of identification data.

  

 

Where we operate

 

Photo-Me has three principal areas of operation geographically - UK & Ireland, Continental Europe and Asia. Its most important territory in Continental Europe is France, and in Asia it is Japan.

 

With photobooths historically being its core business, Photo-Me has chosen to operate in areas offering a strong and consistent demand for identity photos, in particular passports and driving licences. It has also chosen areas where it is able to establish a strong market share and where business practices maintain a high ethical standard. The Group does not operate (although for differing reasons) in South America, Africa or Australasia.

 

Units are generally sited in areas of high footfall and/or where there may be ambient demand for identity photos. Thus supermarkets, shopping malls (indoors and outdoors) and public transport venues are prime locations.

 

 

Key performance indicators

 

The Group measures its performance using a mixture of financial and non-financial indicators. The main objective of these KPIs is to ensure that the Group remains highly cash generative, delivers sustained long-term profitability, preserves the value of its assets and provides high returns to shareholders.

 

Description

Relevance

Performance

 

 

Apr-16

Apr-15

Apr-14

Group total revenue at actual rate of exchange

£184.0m

£177.2m

£186.6m

Group total revenue excluding minilab business at constant rate of exchange

The turnover at constant rate of exchange excluding minilabs indicates the underlying growth of the core business

£195.9m

£183.7m

£181.6m

Group profit before tax

 

£40.1m

£38.5m

£30.1m

Underlying profit before tax

 

£40.1m

£35.0m

£30.1m

EBITDA margin

The EBITDA margin is a good indicator of our improvements in profitability

30.8%

31.2%

25.6%

Underlying EBITDA margin

The underlying EBITDA margin is a good indicator of our improvements in profitability excluding major one-off items

30.8%

29.2%

25.6%

Gross takings (including VAT)

Gross takings are an important indicator of the trend in our core vending business

+3.7%

+2.5%

+1.9%

Increase in number of photobooths

The increase in number of photobooths is always a priority and a main driver for growth

+611

+916

+1,261

Increase in number of laundry units (operated or sold)

The increase in number of laundry units measures our penetration in this market where there is a huge potential for growth and large profits

+1,064

+417

+235

 

 

Our business model

 

Customers

The majority of our business is consumer-oriented and our units must therefore have certain characteristics. These are: good location, attractiveness, ease of use, reliability, quality of product and value for money.

·    Location

We maintain strong relationships with site owners and try to ensure optimum positioning of our machines.

·    Attractiveness

The Group has a strong history of innovation and is constantly looking for ways to update and modernize its estate, while introducing new products to the marketplace. The Starck photobooth, the Revolution laundry units and the newly redesigned photo printing kiosks are recent examples of this.

·    Ease of use

Traditionally, units have been coin-operated in simple denominations (e.g. £5, €5) but the Group is progressively introducing alternative payment systems to improve the customer offering and to enhance customer opportunity.

·    Reliability

Combined with the telemetry connected technology, we employ an extensive network of experienced engineers to minimize downtime and maintain appearance.

·    Quality of product

Photobooths produce ICAO (International Civil Aviation Organisation)-compliant photos and constant investment in technology ensures the estate in general offers the consumer a very satisfactory experience.

·    Value for money

Historically, the Group has been cautious in raising its prices and believes it offers a competitively priced range of products. Machine usage statistics support this view.

 

From an operational perspective, the Group has three main aims:

 

1.   To increase the number of units in operation

2.   To increase takings per unit

3.   To minimize production and operational costs

 

1. Unit expansion

 

The Group's estate can be grown in the following ways:

 

a.   Adding further units within existing territories

b.   Introducing new products within existing territories

c.   Entering new markets

 

a. Adding further units

 

The Group has strong market positions in the established countries in which it operates, therefore adding further units within these territories is generally quite difficult to achieve. However, the Group managed a 2% increase over the year and will be expanding its estate in Japan significantly to take advantage of new photo ID card legislation which comes into force in 2016.

 

b. Introducing new products

 

With its history of innovation, the Group has been very successful at introducing new products and modernizing its portfolio.  The last four years have seen the introduction of the Philippe Starck- designed photobooth range as well as the launch of the brand-new Revolution laundry units, which are now being extended into a laundrette format in 2016.

 

In addition, the Group has further products on trial. This includes the carwash system, the photolight and the new Starck designed digital printing kiosks.

 

The Group is also focussing heavily on developing next-generation technology in its photobooths  encompassing biometry and 3D photography, which it believes will provide solutions to national and local governments in the area of increased security. Biometric applications are already in use in Germany, Switzerland and China and during the year the Group signed a deal with ANTS in France in relation to digital driving licence applications.   

 

c. Entering new markets

 

The Group takes an opportunistic approach to investments in new markets, and constantly assesses new potential markets.

 

In the last twelve months, very positive progress has been made in South Korea, where some 100 photobooths have been sited. Small operations have been launched in Poland.

 

2. Increase takings per unit

 

Over the last few years the Group has generally chosen not to raise prices in light of both the generally difficult economic background globally as well as a desire to ensure that the offering remains very competitive. However, in 2014, a price rise was effected in the Japanese booths to offset VAT increases and the prices on kiddie rides and amusement machines have been raised from low levels in the UK. Going forward, however, the increasing introduction of contactless payment across the estate should allow more price flexibility. The Group is trialling in two countries currently and planning a phased rollout of price increases over the next two years.

 

Besides price initiatives, the introduction of attractive new offerings on the existing estate as well as active resiting of machines to more attractive locations are also strategies to increase takings.

 

3. Minimizing production and operational costs

 

The principal operating cost - other than depreciation - is the commission paid to site owners. Thanks to sophisticated telemetry inside all of its operating units and robust internal controls, the Group suffers virtually no fraud and the costs of operating its network of engineers are also low as a percentage of the total cost base. The Group seeks to reduce commissions where possible - it has achieved some success with the introduction of its Starck booths - and it remains an ongoing strategic management target. The commission payable on its Revolution laundry units is significantly less than the photobooths as they use external space that would normally produce no value for the site owners.

 

Over the last three years, the Group has transferred its production of photobooths to China and the production of the laundry units to Hungary. The facility in each country is operated by a large, listed European manufacturer with very high production standards and capability. In both cases this has significantly reduced production costs.

 

The Group reviews regularly its supply chain and endeavours to further reduce production costs.

 

FINANCIAL REVIEW

 

Financial Performance

 

The Group delivered a strong financial performance, as illustrated by the significant increase in profits.

 

Reported revenue increased by 3.8% to £184.0m as the result of the consistently sustained roll-out of the new laundry business line, the increased volumes in the ID photo business in Asia, and to a lesser extent its resilience in Europe.

 

 

Apr 16

£m

Apr 15

£m

Revenue

184.0

177.2

Underlying EBITDA (*)

56.7

51.8

Underlying Operating Profit (*)

39.7

34.8

Underlying Profit before tax (*)

40.1

35.0

Profit after tax

29.2

28.0

(*) Excludes the profit on sale of land of £3.5m in 2015

 

The movements in turnover are outlined in the following table:

 

 

£m

£m

Apr 15 Turnover

 

177.2

 

 

 

Change in core business revenue

 

 

UK & Ireland

+1.2

 

Continental Europe

+3.8

 

Asia

+6.4

 

 

 

 

 

 

 

Decline in the minilab business

-0.2

 

 

 

 

Impact of exchange rates

-4.4

 

 

 

 

Apr 16 Turnover

 

184.0

 

The increase in the underlying profit before tax can be explained as follows:

 

 

£m

Apr 15 - PBT

38.5

Profit on disposal of land

-3.5

Apr 15 - Underlying PBT

35.0

 

 

Changes in Revenue

+6.8

Changes in Costs

-1.9

Increase in depreciation and amortization

  -

Increase in net finance revenue

+0.2

 

 

Apr 16 - PBT

40.1

 

 

Review of operating costs

 

Operating costs amounted to £144.3m (2015: £138.8m).

 

Staff costs amounting to £40.9m increased by 1.5% compared with the previous year and represented 22.2% of revenue (2015: 22.7%). The increase is in line with the salary inflation across the Group.

 

The reduction in inventory costs is the direct result of both the winding down of the parts and consumable intensive minilab division as well as the costs reductions achieved through enhanced efficiencies in the supply chain.

 

 

 

 

Apr 16

£m

Apr 15

£m

Staff costs

40.9

40.3

Inventory costs

11.5

12.6

Other operating costs

75.2

69.0

 

127.6

121.9

 

 

 

Depreciation and Amortization

16.9

16.9

Profit / (loss) on disposal of fixed assets (*)

-0.2

-

 

 

 

Operating costs

144.3

138.8

(*) Excluding a profit of £3.5m on the disposal of land in 2015

 

 

Taxation

 

The Group tax charge of £10.9m corresponds to an effective tax rate of 27.2% (2015: 27.2%).

 

The Group undertakes business in over 17 countries worldwide, with most of the tax charge arising in France, Japan and the United Kingdom. In each jurisdiction in which the Group operates, operations are organised so that the Group pays the correct and appropriate amount of tax at the right time according to the local regulations and ensure compliance with the Group's tax policy and guidelines.

 

Dividends

 

During the year, the Group paid dividends totalling £18.2m in respect of the interim and final dividend for the year ended 30 April 2015.

 

The interim dividend for the year ended 30 April 2016 (2.575p per share) declared in December 2015 was paid in May 2016 and amounted to £9.7m.

 

Statement of Financial position

 

The Group balance sheet can be summarised as follows:

 

 

Apr 16

£m

Apr 15

£m

Non-current assets (excl deposits)

84.5

71.5

Current assets (excl cash and deposits)

32.4

23.9

Non-current liabilities (excl. borrowings)

-8.4

-7.5

Current liabilities (excl. borrowings)

-48.2

-44.2

Net Cash

62.4

60.7

Total Equity

122.7

104.4

Minority interests

-1.1

-0.9

Total Shareholders' funds

121.6

103.5

 

Following the payment of dividends of £18.2m, the Shareholders funds at 30 April 2016 amounting to £121.6m increased by £18.1m compared with the previous year end.

 

The non-current assets detail is outlined in the following table:

 

 

Apr 16

£m

Apr 15

£m

Goodwill

11.6

10.2

R&D costs

4.7

2.6

Other intangible assets

4.0

3.9

Operating equipment

49.8

43.1

Plant and machinery

5.1

3.8

Land and buildings

1.3

1.3

Investment property

0.6

0.5

 

77.1

65.4

Investments

1.7

0.9

Deferred tax asset

4.2

3.5

Trade and other receivables

1.5

1.7

Total non-current assets (excl. deposits)

84.5

71.5

 

The goodwill mainly relates to the Japanese subsidiary. The addition corresponds to the acquisition of Fowler (UK).

 

With a net book value of £49.8m, the operating equipment is largely the main component of the Group's total non-current assets. The Group owns some 45,500 machines operated worldwide. The change in the net book value reflects the Group's capital expenditure of £25.3m net of depreciation and exchange differences.

 

Cash flow and net cash position

 

 

Apr 16

£m

Apr 15

£m

Opening net cash

60.7

63.1

 

 

 

Cash generated from operations

51.4

49.1

Taxation

-10.8

-9.1

Net cash generated from operations

40.6

40.0

Net cash used in investing activities

-24.8

-18.1

Dividends paid and other financing activities

-17.8

-21.1

 

 

 

Net cash generated

-2.0

0.8

 

 

 

Impact of exchange

3.7

-3.2

 

 

 

Net cash inflow

1.7

-2.4

 

 

 

Closing net cash

62.4

60.7

 

The increase in the EBITDA, coupled with optimised working capital mitigated the impact of increase tax payments leading to the increase in Net cash generated from operations by £0.6m.

 

The cash generation was still substantial and enabled the Group to finance its capital expenditure program as well as to pay out to shareholders dividends amounting to £18.2m.

 

Taking advantage of very advantageous fixed interest rates, the Group raised over the year £10.1m of long term external debt, aimed at financing the acquisition of town centre launderettes. The outstanding debt was deducted from the closing net cash at 30 April 2016. The total cash and cash equivalents at 30 April 2016 amounted to £71m (2015: £58.6m).

 

At the end of April 2016, the Group's net financial position amounting to £62.4 m could be split as follows:

 

 

Cash and deposits

£m

Borrowings

£m

Net Financial Position

£m

Balance at 30 April 2015

60.9

-0.2

60.7

 

 

 

 

Cash flow

8.6

-10.6

-2.0

Non-cash movements

3.7

  -

3.7

 

 

 

 

Balance at 30 April 2016

73.2

-10.8

62.4

 

 

Principal risks

Like all businesses, the Group faces risks and uncertainties that could impact the achievement of the Group's strategy. These risks are accepted as being part of doing business and the Board recognises that the nature and scope of these risks can change and so regularly reviews the risks faced by the Group as well as the systems and processes to mitigate them.

The table below sets out what the Board believes to be the principal risks and uncertainties, their impact, and actions taken to mitigate them.

 

Nature of the risk

Description and impact

Mitigation

Economic

 

 

• Global economic conditions

Economic growth is a major influence on consumer spending. A sustained period of economic recession could lead to a decrease in consumer expenditure in discretionary areas.

The Group focuses on maintaining the characteristics and affordability of its needs-driven products.

• Volatility of foreign exchange rates

The majority of the Group's revenue and profit is generated outside of the UK, and the Group results could be adversely impacted by an increase in the value of sterling relative to those currencies.

The Group hedges its exposure to currency fluctuations on transactions, as relevant. However, by its nature, in the Board's opinion, it is very difficult to hedge against currency fluctuation arising from translation in consolidation in a cost-effective manner.

Regulations

 

 

• Centralisation of production of ID photos

In many European countries where the Group operates, if governments were to implement centralised image capture for biometric passport and other applications, the Group's revenues and profits could be seriously affected.

The Group is developing new systems that could respond to this situation, including the introduction of 3D technology in ID security standards. The Group also ensures that its ID product remains affordable and of high quality.

The Group is also conducting lobbying activities.

Strategic

 

 

• Identification of new business opportunities

Failure to identify new business areas may impact the ability of the Group to grow in the long term.

The Management teams constantly review demand in existing markets and potential new opportunities. The Group continues to invest in research for new products and technologies.

• Inability to deliver anticipated benefits from the launch of new products

The realisation of long-term anticipated benefits depends mainly upon the successful launch of the "Revolution" laundry unit.

The Group regularly monitors the performance of newly installed machines, which are heavily trialled before launch.

Market

 

 

• Commercial relationships

The Group has well-established long-term relationships with a number of site-owners. The deterioration in the relationship with, or ultimately the loss of, a key account would have an adverse albeit contained, impact on the Group's results, considering how the Group's turnover is spread over a large client base and none of the accounts representing more than 1% of the Group turnover

The Group's major key relationships are supported by medium-term contracts. We actively manage our site-owner relationships at all levels to ensure a high quality of service.

Operational

 

 

• Reliance on foreign manufacturers

The Group sources most of its products from outside the UK. Consequently, the Group is subject to risks associated with international trade.

Extensive research is conducted into quality and ethics before the Group procures products from any new country or supplier. The Group also maintains very close relationships with both its suppliers and shippers to ensure that risks of disruption to production and supply are managed appropriately.

• Reliance on one single supplier of consumables

The Group currently buys all its paper for photobooths from one single supplier. The failure of this supplier could have a dramatic effect.

The Board has decided to hold a strategic stock of paper, allowing for 6 to 10 months' worth of paper consumption, to give enough time to put in place alternative solutions.

• Reputation

The Group's brand is a key asset of the business. Failure to protect the Group's reputation and brand could lead to a loss of trust and confidence. This could result in a decline in the customer base.

The protection of the Group's brand in its core markets is sustained by products with certain unique features and offerings as well as regular maintenance to maintain appearance.

• Product and service quality

The Board recognises that the quality and safety of both its products and services is of critical importance and that any major failure will affect consumer confidence.

The Group continues to invest in its existing estate, to ensure that it remains contemporary, and in constant product innovation to meet customer needs. The Group also has a programme to regularly train its technicians.

Technological

 

 

• Failure to keep up with the advances in technology

The Group operates in fields particularly in relation to photography where upgrades to new technologies are mission critical.

The Group mitigates this risk by continual focus on R&D.

 

Group Statement of Comprehensive Income

For the year ended 30 April 2016

 

 

2016

2015

 

 

£ '000

£ '000

Revenue

 

183,994

177,202

Cost of Sales

 

(131,546)

(129,638)

Gross Profit

 

52,448

47,564

Other Operating Income

 

1,306

1,166

Administrative Expenses

 

(14,185)

(10,524)

Share of Post-Tax Profits from Associates

 

165

164

Operating Profit

 

39,734

38,370

Analysed as:

 

 

 

Operating profit before specific items

 

39,734

34,886

Profit on sale of land

 

-

3,484

Operating profit after specific items

 

39,734

38,370

Finance Revenue

 

538

191

Finance Cost

 

(166)

(65)

Profit before Tax

 

40,106

38,496

Total Tax Charge

 

(10,907)

(10,452)

Profit for Year

 

29,199

28,044

Other Comprehensive Income

 

 

 

Items that are or may subsequently be classified to profit and loss:

 

 

 

Exchange differences arising on translation of foreign operations

 

5,328

(6,779)

Taxation on exchange differences

 

485

-

Total items that are or may subsequently be classified to profit and loss

 

5,813

(6,779)

Items that will not be classified to profit and loss:

 

 

 

Remeasurement (losses)/gains in defined benefit obligations and other post-employment benefit obligations

 

43

(860)

Deferred tax on remeasurement  (losses)/gains

 

(9)

221

Total items that will not be classified to profit and loss

 

34

(639)

Other comprehensive income/(expense) for the year net of tax

 

5,847

(7,418)

Total comprehensive income for the year

 

35,046

20,626

Profit for the Year Attributable to:

 

 

 

Owners of the Parent

 

29,066

27,900

Non-controlling interests

 

133

144

 

 

29,199

28,044

Total comprehensive income attributable to:

 

 

 

Owners of the Parent

 

34,841

20,605

Non-controlling interests

 

205

21

 

 

35,046

20,626

Earnings per Share

 

 

 

Basic Earnings per Share

 

7.78p

7.49p

Diluted Earnings per Share

 

7.72p

7.43p

 

All results derive from continuing operations

 

 

 

 

Statements of Financial Position

For the year ended 30 April 2016

 

 

Group

 

 

2016

2015

 

 

£'000

£'000

Assets

 

 

 

Non-current assets

 

 

 

Goodwill

 

11,606

10,180

Other intangible assets

 

8,706

6,507

Property, plant & equipment

 

56,094

48,263

Investment property

 

629

458

Investment in - associates

 

1,713

848

Investment in subsidiaries

 

-

-

Other financial assets - held to maturity

 

2,253

2,220

Other financial assets - available for sale

 

75

70

Deferred tax assets

 

4,216

3,512

Trade and other receivables

 

1,548

1,684

 

 

86,840

73,742

Current assets

 

 

 

Inventories

 

17,094

12,099

Trade and other receivables

 

13,010

10,874

Current tax

 

2,273

869

Cash and cash equivalents

 

71,005

58,632

 

 

103,382

82,474

Assets held for sale

 

96

-

Total assets

 

190,318

156,216

 

 

 

 

Equity

 

 

 

Share capital

 

1,877

1,866

Share premium

 

8,156

7,131

Translation and other reserves

 

10,507

4,766

Retained earnings

 

101,101

89,744

Equity attributable to owners of the Parent

 

121,641

103,507

Non-controlling interests

 

1,109

904

Total equity

 

122,750

104,411

 

 

 

 

Liabilities

 

 

 

Non-current liabilities

 

 

 

Financial liabilities

 

9,183

124

Post-employment benefit obligations

 

4,755

4,291

Provisions

 

10

17

Deferred tax liabilities

 

1,887

1,067

Trade and other payables

 

1,821

2,050

 

 

17,656

7,549

Current liabilities

 

 

 

Financial liabilities

 

1,660

59

Provisions

 

4,103

5,540

Current tax

 

8,341

5,981

Trade and other payables

 

35,808

32,676

 

 

49,912

44,256

Total equity and liabilities

 

190,318

156,216

 

 

Group Statement of Cash Flows

For the year ended 30 April 2016

 

 

 

2016

2015

 

 

 

£'000

£'000

Cash flow from operating activities

 

 

 

 

Profit before tax

 

 

40,106

38,496

Finance cost

 

 

166

65

Finance revenue

 

 

(538)

(191)

Operating profit

 

 

39,734

38,370

Share of post tax profit from associates

 

 

(165)

(164)

Amortisation of intangible assets

 

 

1,548

2,092

Depreciation of property, plant and  equipment

 

 

15,413

14,789

Profit/(loss) on sale of property, plant and equipment

 

 

(236)

(3,510)

Exchange differences

 

 

2,031

(1,996)

Other items

 

 

(1,615)

(876)

Changes in working capital:

 

 

 

 

Inventories

 

 

(3,665)

(1,910)

Trade and other receivables

 

 

52

2,587

Trade and other payables

 

 

108

451

Provisions

 

 

(1,775)

(671)

Cash generated from operations

 

 

51,430

49,162

Interest paid

 

 

(166)

(64)

Taxation paid

 

 

(10,816)

(9,124)

Net cash generated from operating activities

 

 

40,448

39,974

Cash flows from investing activities

 

 

 

 

Acquisition of subsidiaries net of cash acquired

 

 

(1,642)

(422)

Investment in associates

 

 

(671)

(146)

Investment in  intangible assets

 

 

(3,221)

(3,641)

Proceeds from sale of intangible assets

 

 

-

1

Purchase of property, plant and equipment

 

 

(21,276)

(19,833)

Proceeds from sale of property, plant and equipment

 

 

1,521

5,623

Proceeds of sale of subsidiaries net of cash sold

 

 

-

32

Interest received

 

 

538

189

Dividends received from  associates

 

 

-

96

Net cash generated from investing activities

 

 

(24,751)

(18,101)

Cash flows from financing activities

 

 

 

 

Issue of Ordinary shares to equity shareholders

 

 

1,036

617

Repayment of capital element of finance leases

 

 

(147)

(78)

Repayment of borrowings

 

 

(665)

(158)

Increase in borrowings

 

 

10,946

-

Decrease in assets held to maturity

 

 

29

76

Dividends paid to owners of the Parent

 

 

(18,217)

(21,381)

Dividends paid to non-controlling interests

 

 

-

(158)

Net cash utilised in financing activities

 

 

(7,018)

(21,082)

Net increase in cash and cash equivalents

 

 

8,679

791

Cash and cash equivalents at beginning of year

 

 

58,632

60,996

Exchange loss on cash and cash equivalents

 

 

3,694

(3,155)

Cash and cash equivalents at end of year

 

 

71,005

58,632

 

Group Statement of Changes in Equity

For the year ended 30 April 2016 

 

Share capital £'000

Share premium £'000

Other reserves £'000

Translation reserve £'000

Retained earnings £'000

Attributable to owners of the Parent £'000

Non-controlling interests £'000

Total  £'000

At 1 May 2014

1,859

6,521

1,874

9,528

83,332

103,114

1,119

104,233

Profit for year

-

-

-

-

27,900

27,900

144

28,044

Other comprehensive (expense)/income

 

 

 

 

 

 

 

 

Exchange differences

-

-

-

(6,656)

-

(6,656)

(123)

(6,779)

Transfers between reserves

-

-

-

20

(20)

-

-

-

Remeasurement losses in defined benefit pension scheme and other post-employment benefit obligations

-

-

-

-

(860)

(860)

-

(860)

Deferred tax on remeasurement gains

-

-

-

-

221

221

-

221

Total other comprehensive (expense)/income

-

-

-

(6,636)

(659)

(7,295)

(123)

(7,418)

Total comprehensive (expense)/income

-

-

-

(6,636)

27,241

20,605

21

20,626

Transactions with owners of the Parent

 

 

 

 

 

 

 

 

Shares issued in the period

7

610

-

-

-

617

-

617

Share options

-

-

-

-

371

371

-

371

Deferred tax on share options

-

-

-

-

181

181

-

181

Dividends

-

-

-

-

(21,381)

(21,381)

(158)

(21,539)

Disposal of minority

-

-

-

-

-

-

(78)

(78)

Total transactions with owners of the Parent

7

610

-

-

(20,829)

(20,212)

(236)

(20,448)

At 30 April 2015

1,866

7,131

1,874

2,892

89,744

103,507

904

104,411

At 1 May 2015

1,866

7,131

1,874

2,892

89,744

103,507

904

104,411

Profit for year

-

-

-

-

29,066

29,066

133

29,199

Other comprehensive (expense)/income

 

 

 

 

 

 

 

 

Exchange differences

-

-

-

5,256

-

5,256

72

5,328

Tax on exchange

-

-

-

485

-

485

-

485

Remeasurement losses in defined benefit pension scheme and other post-employment benefit obligations

-

-

-

-

43

43

-

43

Deferred tax on remeasurement gains

-

-

-

-

(9)

(9)

-

(9)

Total other comprehensive (expense)/income

-

-

-

5,741

34

5,775

72

5,847

Total comprehensive (expense)/income

-

-

-

5,741

29,100

34,841

205

35,046

Transactions with owners of the Parent

 

 

 

 

 

 

 

 

Shares issued in the period

11

1,025

-

-

-

1,036

-

1,036

Share options

-

-

-

-

413

413

-

413

Deferred tax on share options

-

-

-

-

61

61

-

61

Dividends

-

-

-

-

(18,217)

(18,217)

-

(18,217)

Total transactions with owners of the Parent

11

1,025

-

-

(17,743)

(16,707)

-

(16,707)

At 30 April 2016

1,877

8,156

1,874

8,633

101,101

121,641

1,109

122,750

 

 

NOTES

1 Basis of preparation and accounting policies

The preliminary results for the year ended 30 April 2016 have been extracted from the audited consolidated financial statements, which were approved by the Board of Directors on 21 June 2016. The audited consolidated financial statements have not yet been delivered to the Registrar of Companies but are expected to be published by the end of July. 

  

Abridged financial information

The financial information in this announcement which was approved by the Board of Directors does not constitute the Company's statutory accounts for the years ended 30 April 2015 or 2016 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under s498(2) or (3) Companies Act 2006.

This preliminary announcement has been prepared in accordance with the accounting policies under IFRS as adopted by the EU.

Whilst the financial information included in this preliminary announcement has been prepared in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS. This preliminary announcement constitutes a dissemination announcement in accordance with Section 6.3 of the Disclosures and Transparency Rules (DTR).
 

2 Segmental analysis

IFRS 8 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. The Group monitors performance at the adjusted operating profit level before specific items, interest and taxation.

In accordance with IFRS 8, 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.

The segment results are as follows:

 

Asia

Continental Europe

United Kingdom & Ireland

Total

 

£'000

£'000

£'000

£'000

2016

 

 

 

 

Total revenue

45,364

100,816

46,066

192,246

Inter segment sales

(865)

(7,104)

(283)

(8,252)

Revenue from external customers

44,499

93,712

45,783

183,994

EBITDA

13,633

33,881

11,934

59,448

Depreciation and amortisation

(3,134)

(9,718)

(3,973)

(16,825)

Operating profit excluding associates

10,499

24,163

7,961

42,623

Share of post-tax profits from associates

 

 

 

165

Corporate costs excluding depreciation and amortisation

 

 

 

(2,918)

Corporate depreciation and amortisation

 

 

 

(136)

Operating profit

 

 

 

39,734

Finance Revenue

 

 

 

538

Finance costs

 

 

 

(166)

Profit before tax

 

 

 

40,106

Tax

 

 

 

(10,907)

Profit for year

 

 

 

29,199

 

 

Reconciliation of operating profit

 

 

 

 

 

Asia

Continental Europe

United Kingdom & Ireland

Total

 

£'000

£'000

£'000

£'000

Operating profit before associates

10,499

24,163

7,961

42,623

Share of post tax profits from associates

165

-

-

165

Corporate operating profit

-

737

(3,791)

(3,054)

Total operating profit

10,664

24,900

4,170

39,734

 

 

Asia

Continental Europe

United Kingdom & Ireland

Total

 

£'000

£'000

£'000

£'000

2015 

 

 

 

 

Total revenue

38,925

100,127

44,867

183,919

Inter segment sales

(720)

(5,782)

(215)

(6,717)

Revenue from external customers

38,205

94,345

44,652

177,202

EBITDA

10,232

32,013

11,810

54,055

Depreciation and amortisation

(3,465)

(9,967)

(3,359)

(16,791)

Operating profit excluding associates

6,767

22,046

8,451

37,264

Share of post-tax profits from associates

 

 

 

164

Corporate costs excluding depreciation and amortisation

 

 

 

1,032

Corporate depreciation and amortisation

 

 

 

(90)

Operating profit

 

 

 

38,370

Finance Revenue

 

 

 

191

Finance costs

 

 

 

(65)

Profit before tax

 

 

 

38,496

Tax

 

 

 

(10,452)

Profit for year

 

 

 

28,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in corporate costs for 2015 is the profit on sale of vacant land at the Bookham site of £3,484,000.

 

 

 

 

 

 

Reconciliation of operating profit

 

 

 

 

 

Asia

Continental Europe

United Kingdom & Ireland

Total

 

£'000

£'000

£'000

£'000

Operating profit before associates

6,768

22,045

8,453

37,266

Share of post tax profits from associates

164

-

-

164

Corporate operating profit

-

1,012

(72)

940

Total operating profit

6,932

23,057

8,381

38,370

 

Inter-segment revenue mainly relates to sales of equipment.

 

3 Taxation

Tax charges/(credits) in the statement of comprehensive income

 

 

 

 

2016

2015

 

 

 

£'000

£'000

Current taxation

 

 

 

 

UK Corporation tax

 

 

 

 

- current year

 

 

1,965

2,164

- prior years

 

 

(15)

(144)

 

 

 

1,950

2,020

Overseas taxation

 

 

 

 

- current year

 

 

9,023

7,491

- prior years

 

 

(64)

(62)

 

 

 

8,959

7,429

Total current taxation

 

 

10,909

9,449

 

 

 

 

 

Deferred taxation

 

 

 

 

Origination and reversal of temporary differences

 

 

 

 

- current -year - UK

 

 

(520)

1,103

- current -year - overseas

 

 

256

(123)

Adjustments to estimated recoverable amounts of deferred tax assets arising in previous years

 

 

 

 

- UK

 

 

(15)

(56)

- Overseas

 

 

205

79

Impact of change in rate

 

 

72

-

Total deferred tax

 

 

(2)

1,003)

Tax charge in the statement of comprehensive income

 

 

10,907

10,452

 

4 Earnings per share

Basic earnings per share amounts are calculated by dividing net earnings attributable to shareholders of the Parent of £29,066,000 (2015: £27,900,000) by the weighted average number of shares in issue during the year, excluding those held, where applicable, as treasury shares.

Diluted earnings per share amounts are calculated by dividing the net earnings attributable to shareholders of the Parent by the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be issued on conversion of all the dilutive potential shares into shares. The Group has only one category of dilutive potential shares: the share options granted to senior staff, including directors.

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

 

 

 

2016

 

 

2015

 

 

Earnings £'000

Weighted average number of shares £'000

Earnings per share pence

Earnings £'000

Weighted average number of shares £'000

Earnings per share pence

 

 

 

 

 

 

 

Basic earnings per share

29,066

374,121

7.77

27,900

372,381

7.49

Effect of dilutive share options

 

2,514

(0.05)

 

3,314

(0.06)

Diluted earnings per share

29,066

376,635

7.72

21,422

375,695

7.43

 

Potential shares (for example, arising from exercising share options) are treated as dilutive only when their conversion to shares would decrease basic earnings per share or increase loss per share from continuing operations.

 

Alternative earnings per share

The table below reconciles earnings per share (EPS) and diluted earnings per share (DPS) before and after specific items. There were no specific items in the year ended 30 April 2016.

 

Alternative earnings per share

 

2016

 

 

2015

 

 

£'000

EPS

DPS

£'000

EPS

DPS

Earnings available to shareholders

29,066

7.77

7.72

27,900

7.49

7.43

Special items net of tax

-

-

-

(2,752)

(0.74)

(0.73)

Earnings after special items

29,066

7.77

7.72

25,148

6.75

6.70

Weighted average number of shares in issue in period- basic ('000)

374,121

 

 

372,381

 

 

- including dilutive share options ('000)

376,635

 

 

375,695

 

 

 

Specific items for the year ended 30 April 2015 relate to the sale of vacant land at the Bookham site. The contract for £4,200,000 was exchanged on 5 June 2014 with cash settlement on completion one month later.

 

5 Dividends paid and proposed

 

Year ended 30 April 2016 Proposed dividends not yet paid

 

The Board declared an interim dividend of 2.575p per share for the year ended 30 April 2016, amounting to £9,669,000 which was paid on 12 May 2016. The Board proposes a final dividend of 3.285 p per share, which is subject to the shareholder's approval at the Annual General Meeting to be held on 20 October 2016. In addition the Board propose a special dividend of 2.815p per share. Both the final and special dividend will be paid on 10 November 2016 in total amounting to £22,904,000.
 

Year ended 30 April 2015 - Paid after 30 April 2015.

The Board declared an interim dividend of 2.34p per share for the year ended 30 April 2015, amounting to £8,733,000 which was paid on 14 May 2015. The Board proposed a final dividend for the year ended 30 April 2015 of 2.54 per share, amounting to £9,484,000 which was paid on 12 November 2015.

 

6 Non-Current assets

 

Goodwill

 

Intangible assets

Property, plant & equipment

Investment property

 

£'000

£'000

£'000

£'000

Net book value at 1 May 2015

10,180

6,507

48,263

458

Exchange difference and other movements

153

327

2,619

33

Additions - photobooths and vending equipment

-

-

19,402

-

Additions - other assets

-

3,221

2,053

140

Additions - new subsidiaries

1,273 

254

549

 

Amortisation

-

(1,548)

-

-

Depreciation

-

-

(15,411)

(2)

Reclassifications

-

13

-

-

Transfer to assets held for sale

-

-

(96)

-

Disposals at net book value

-

(68)

(1,285)

-

Net book value at 30 April 2016

11,606

8,706

56,094

629

 

7 Net cash

 

2016

2015

 

£'000

£'000

Cash and cash equivalents per statement of financial position

71,005

 58,632

Financial assets - held to maturity

2,253

 2,220

Non -current instalments due on bank loans

(8,866)

-

Current instalments  due on bank loans

(1,515)

 -

Non-current finance leases

(317)

(124)

Current finance leases

 (145)

 (59)

Net cash

62,415

60,669

 

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 instalments on loans and other borrowings.

At 30 April 2016, £2,253,000 of the total net cash (2015: £2,320,000 ) comprised bank deposit accounts that are subject to restrictions and are not freely available for use by the Group and Company. These amounts are shown under financial assets held to maturity.

By order of the Board

John Lewis                                                                          Serge Crasnianski

Chairman                                                                            Chief Executive Officer

21 June 2016

 

 

8 Publication of the audited financial statements

Copies of the Report and Accounts for the year ended 30 April 2016 will be mailed to those shareholders who have opted to receive them, by the end of July and will be available from the Company's registered office at Church Road, Bookham, Surrey KT23 3EU (telephone: 01372-453 399, fax: 01372-459 064, email: [email protected]) and the Company's website (http://investor.photo-me.com/financial- -reports) after that date.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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