Annual results of Photo-Me

Due to exceptional items, Photo-Me recorded an operating loss of £ 1.7 million (US-$ 2.8 million/Euro 2.0 million) compared with a £ 17.8 million in the previous year, resulting in a pre-tax loss of £ 5.1 million (US-$ 8.4 million/Euro 6.0 million and a loss on continuing operations for the year of £ 3.6 million (US-$ 5.9 million/Euro 4.2 million), compared with a minus of £ 18.4 million in 2008.

From discontinued operations, a loss for the year of £ 14.2 million (US-$ 23.3 million/Euro 16.6 million) was reported. Imaging Solutions, the Swiss specialist in high speed digital photofinishing equipment, affected Photo-Me‘s balance sheet with a loss of £ 15.0 million (US-$ 24.6 million/Euro 17.5 million), comprising a £ 6.9 million (US-$ 11.3 million/Euro 8.0 million) trading loss and a £ 8.1 million (US-$ 13.3 million/Euro 9.4 million) non-cash write-down of assets to their expected realizable amounts. The balancing figure was a £ 0.8 million profit on the sale of Photo-Me‘s US Wending business, the company said.

The total reported loss for the year from continuing and discontinued operations reached therefore £ 17.7 million (US-$ 29.0 million/Euro 20.6 million), compared with a loss of £ 19.8 million in 2008.

At the end of the fiscal year, the total number of digital media kiosks installed was up eight percent at 4,950 units, with France continuing to be by far the principal territory with 2,900 kiosks, followed by the UK and Ireland with 900 and Switzerland with 600 units, the latter including 180 kiosks sited during the year at the Migros supermarket chain. Revenue from media burning increased by 25 percent (8 percent at constant exchange rates), reflecting the increased number of units and greater customer awareness and acceptance, the company said.

Photo-Me‘s retail photographic equipment business, Kis/Photo-Me of Grenoble, France, suffered from the global recession as well as declining demand for minilabs and the more away from silverhalide technology.

According to a press release, the photo album machine for the attended retail market, the Photobook Pro, failed to maintain its level of sales. Revenue from sales of consumables, spare parts and servicing also declined, resulting in a decrease of revenue by 12 percent at constant exchange rates and another substantial, if reduced, loss for the business. Kis/Photo-Me‘s photobook maker, the first self-service kiosk able to produce a photobook in minutes, was currenty being introduced to some of the world‘s largest retail chains with excellent results, Photo-Me pointed out, adding that the company has achieved in significantly reducing debt during the fiscal year. For the current year, the objective of the Photo-Me Board is a further improvement in the outcome on continuing operations before exceptionals, given the absence of a further material deterioration in market conditions.