Photo-Me announces higher profit, more dividend

Photo-Me’s Operations division, which comprises the operation of unattended vending equipment, primarily photo booths, digital photo kiosks, photobook makers, amusement machines and business service equipment, recorded sales of £ 176.8 million/US$ 283.15 million (plus 2.6 percent), with an operating profit of £ 21.2 million/US$ 33.95 million (plus 28.5 percent). At the year end, the total number of vending machines sited worldwide was 43,700 (2010: 43,850), the small reduction in the year comprising an increase by almost 1,000 in the number of photobooths combined with a reduction in the quantity of low cost amusement machines. Photobooths represent more than half of the sited machines. 87% of sites are located in three territories – the UK & Ireland, France and Japan. By area, Continental Europe accounted for 18,300 (2010: 18,050) sites; the UK & Ireland for 16,850 (2010: 17,550); and Asia for 8,550 (2010: 8,250).

Sales of Photo-Me’s Sales and Servicing Group, which comprises the development, manufacture, sale and after sale servicing of the above-mentioned Operations equipment and a range of photo processing equipment and photo album maker solutions, decreased 14.2 percent to £ 43.0 million/US$ 66.9 million, the operating profit shrank 82.1 percent to £ 0.5 million/US$ 0.8 million. According to a press release, the decrease in revenue and profit is attributable to KIS (the R&D and manufacturing unit in France), where results were affected by costs associated with the launch of new products in the second half of the financial year. The highlight for the year was the receipt of two orders totalling 1,300 machines from Mitsubishi and 1,000 machines from Fuji for the Group’s Photobook suite of products. Discussions are ongoing regarding further substantial orders. The Group is looking to incorporate inkjet technology into the Photobook Maker range, saying this will bring the potential of significant business with major players in this area, and will strengthen the Group’s position as market leader in the field of instant photobooks.