TIDMPHTM
RNS Number : 8906S
Photo-Me International PLC
19 July 2022
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
19 July 2022
Photo-Me International plc
("Photo-Me", "ME Group", "the Group" or "the Company")
INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2022
Strong half-year performance underpins full year outlook ahead
of expectations
ME Group name change to better reflect diversification focus and
business strategy
Photo-Me International plc (PHTM.L), the instant-service
equipment group, announces its results for the six months ended 30
April 2022 (the "Period").
Results summary
Reported
Six months ended Six months ended Change
30 April 2022 30 April 2021
---------------- ---------------- ------
Revenue GBP115.3m GBP94.6m 21.9%
---------------- ---------------- ------
EBITDA (excluding associates)(1) GBP40.2m GBP28.7m 40.1%
---------------- ---------------- ------
Reported profit before tax GBP19.9m GBP12.0m 65.8%
---------------- ---------------- ------
Adjusted profit before tax(2) GBP16.0m GBP12.9m 24.0%
---------------- ---------------- ------
Profit after tax GBP16.4m GBP9.4m 74.5%
---------------- ---------------- ------
Cash generated from operations GBP29.8m GBP22.4m 33.0%
---------------- ---------------- ------
Gross Cash GBP96.8m GBP95.3m 1.6%
---------------- ---------------- ------
Net cash GBP43.2m GBP16.9m 155.6%
---------------- ---------------- ------
Earnings per share (diluted) 4.35p 2.49p N/A
---------------- ---------------- ------
Interim dividend per Ordinary 2.6p nil N/A
share
---------------- ---------------- ------
Special dividend per Ordinary 6.5p nil N/A
share
---------------- ---------------- ------
(1) EBITDA is Reported profit before tax, less total
depreciation and amortisation, less other net gain, finance costs
and income.
(2) Adjusted profit before tax for the six months to 30 April
2022 is profit before tax adjusted to exclude profit on sale of
property and loss on disposal of subsidiary La Wash
(3) Refer to note 8 for the reconciliation of net cash to cash
and cash equivalents as per the financial statements.
Financial summary
-- Revenue was up 21.9% to GBP115.3 million (H1 2021: GBP94.6
million), resulting mostly from the continued easing of Covid-19
related restrictions across the Group's key operating markets and
subsequent positive impact of increased demand for passports and
other official documentation
-- EBITDA increased by 40.1% to GBP40.2 million (H1 2021: GBP28.7 million)
-- Reported profit before tax increased by 65.8% to GBP19.9 million (H1 2021: 12.0 million)
-- Cash generated from operations was up 33.0% to GBP29.8 million (H1 2021: GBP22.4 million)
-- Net cash position of GBP43.2 million, an increase of 155.6% (30 April 2021: GBP16.9 million)
Operational summary
-- Photobooth business saw a stronger than anticipated recovery
as travel and social restrictions were eased. Revenue was up 27.4%
which is a testament to the resilience of the photobooth market
-- Laundry division operations continued to perform well with
total laundry revenue (Revolution laundry operations and sale of
machines) up 8.4% to GBP25.9 million
-- Expansion of Revolution laundry operations continued and
revenue was up 37.5% to GBP25.3 million. The total number of
Revolution units in operation grew by 15.9%
-- Continued focus on new product innovation and diversification
of operations to meet ever-changing consumer needs, with new
products launched and technology partnerships announced
-- ME Group corporate brand rolled out across the majority of
operations - plan to change listed entity name shortly, to align to
the new corporate brand strategy and reflect broader based
concession offer.
Outlook
-- Expect performance for the year ending 31 October 2022 to
show revenue growth of at least 20% compared with FY 2021
-- EBITDA to be in the range of GBP79 to GBP84 million, assuming
that Covid-19 or other social restrictions are not re-imposed in
our key markets
-- Adjusted profit before tax expected to be in the range of GBP47 million to GBP50 million
Serge Crasnianski, CEO and Deputy Chairman, said:
"We are proud to announce an extremely strong first half
performance, ahead of the Board's expectations. Demand for our
machines continues to grow at pace, as economies reopen and
confidence returns among consumers globally, and we are working
hard to keep up with evolving trends and consumer needs.
We look forward to maintaining this strong growth as we
celebrate our 60(th) year as a listed company, investing strongly
in innovation and rapidly upgrading to the next generations of our
machines across all business areas, including photobooths, laundry
and food vending. The opportunities for the Group and our consumers
are endless, supported by our ME Group corporate brand which better
reflects our strategic diversification. Our plans to change the
listed entity name later this year will be an important start to
the next chapter of our growth story.
We are also very pleased to reward our loyal shareholders with a
special dividend this year as a result of the Company's strong cash
position, particularly after the freeze on dividends during the
worst of the pandemic. This along with our progressive dividend
policy reflects the Board's optimism for the future.
"We are grateful to all our partners and our employees who have
helped us throughout the challenges posed by Covid-19. The Board
believes that the Group's ability to come through the pandemic in
such good shape and increase its profitability is testimony to the
strong fundamentals of the Group and its resilience in the face of
adverse economic headwinds. "
Enquiries:
Photo-Me International plc +44 (0) 1372 453 399
ir@photo-me.co.uk
Serge Crasnianski, Chief Executive & Deputy
Chairman
Stéphane Gibon, Chief Financial Officer
Hudson Sandler +44 (0) 20 7796 4133
photo-me@hudsonsandler.com
Wendy Baker / Charlotte Cobb / Nick Moore
An investor presentation will be available to download later
today at www.me-group.com
NOTES TO EDITORS
Photo-Me International plc (LSE: PHTM) operates, sells and
services a wide range of instant-service vending equipment,
primarily aimed at the consumer market.
The Group operates vending units across 20 countries and its
technological innovation is focused on four principal areas:
-- Photo.ME - Photobooths and integrated biometric identification solutions
-- Wash.ME - Unattended laundry services and launderettes
-- Print.ME - High-quality digital printing kiosks
-- Feed.ME - Vending equipment for the food service market
The Group entered the self-service fresh fruit juice equipment
market in April 2019, with the acquisition of Sempa, and the
acquisition of SGER (Resto'clock) in June 2021, a French Pizza
vending equipment company for the self-service food equipment
market. Feed.ME will become a key business area - alongside
photobooths and identification (Photo.ME), laundry (Wash.ME), and
printing kiosks (Print.ME) - and is a significant part of the
Group's future growth strategy.
In addition, the Group operates other vending equipment such as
children's rides, amusement machines, and business service
equipment.
Whilst the Group both sells and services this equipment, the
majority of units are owned, operated and maintained by Photo-Me
International plc. The Group pays the site owner a commission based
on turnover, which varies depending on the country, location and
the type of the machine.
The Group has built long-term relationships with major site
owners and its equipment is generally sited in prime locations in
areas of high footfall such as supermarkets, shopping malls
(indoors and outdoors), public transport hubs, and administration
buildings (City Halls, Police etc.). Equipment is maintained and
serviced by an established network of 650 field engineers.
The Company's shares have been listed on the London Stock
Exchange since 1962.
ME Group is a trademark and trading name of Photo-Me
International plc.
www.me-group.com
CHAIRMAN'S STATEMENT
The Group's first half performance was ahead of the Board's
expectations, with a strong recovery seen across all operating
markets, except for Asia. The easing of restrictions and the
ability for consumers to socialize and travel created strong demand
for our services, driving demand for photo ID and laundry services.
We are pleased to report that trading has now returned to
pre-pandemic levels in Continental Europe, the UK and the Republic
of Ireland.
We have a proven and stable concessions-based business model.
Our dominant market positions in unique locations give us pricing
power to mitigate inflationary pressures in the markets where we
operate. Our established and long-standing partnerships offer
long-term contracts for siting our machines. Generally, in 90% of
cases these contracts are renewed by tacit renewal. Alongside our
track record of innovation and new product development the Group is
well positioned to grow the number of units in operation in each of
its core divisions, increasing the yield per machine and attracting
new users to our breadth of instant service equipment. This means a
significant profit before tax contribution is made with marginal
increases in revenues, which is boosted by appropriate marketing
capex and commercial improvement of our machines across all our
territories.
Innovation and growth strategy
The Group's strong first half performance was driven
predominantly by the post-Covid recovery however the Directors
believe that the Company's growth moving forward will be driven
more by the ME Group growth strategy, which is focused on
diversifying our operations through innovation and new technologies
to meet the ever-changing needs of our customers and consumers. We
leverage our in-house R&D capabilities in France (primary
facility), Vietnam and Japan and our 50-strong team of dedicated
engineers. Our services are centered on providing a
state-of-the-art user experience underpinned by technology, and an
omnichannel approach across our vending estate.
Good strategic progress was achieved in the Period, with a focus
on our key investment priorities of (i) creation of the next
generation photobooths; (ii) continued expansion of laundry
operations; and (iii) growth of our food vending equipment
business. Each of these areas of investment increases the asset
base of the Company and establishes long-term revenue streams for
the Company moving forward.
Notably in the Period, the number of Revolution laundry units in
operation increased by 15.9% to 4,360. Further fresh juice machines
were installed and the rollout of pizza vending machines
accelerated and averaged 20 per month.
As anticipated, the contribution from laundry and food vending
equipment operations has increased as a proportion of the Group's
total revenue and EBITDA. This is a trend the Board expects to
continue moving forward, providing a more balanced revenue
profile.
In addition to the above, the Board will continue to identify
selected bolt-on acquisitions which meet its return-on-investment
criteria. Any acquisitions will be in line with the growth strategy
of the Company, as set out above. It will also consider
opportunities to extend the Group's footprint into new European
markets, with the Group having recently entered Italy, Finland and
Australia.
Further details are set out in the Chief Executive's Business
and Financial Review.
ME Group corporate brand
Adoption of our new corporate brand, ME Group, which is a
trademark and trading name of Photo-Me International plc, continued
apace and with most subsidiary companies now operating under the ME
Group name. This new identity supports our growth strategy and
better reflects the diversity of the Group's operations today. It
also enhances our brand proposition amongst our consumers and
customers.
The Group plans to change its listed entity name, to align to
the new corporate brand strategy, in autumn 2022. The proposed name
change reflects the transition of the Company from one that has
historically been viewed as a consumer product and services
company, predominantly based around the ownership of photobooths,
into a broader based infrastructure company targeting multiple
revenue streams.
Corporate responsibility
We remain committed to strengthening our CSR activity to deliver
our goals through inventing eco-responsible local services to
support growth by integrating social, environmental, and economic
expectations into our strategy and operations. Details of our CSR
approach and KPIs is available on the Group's website
me-group.com.
Dividends
Given the strong performance of the Company since the end of
Covid restrictions including during the six months ended 30 April
2022 set out above, and the Board's confidence in the future
performance of the Company, the Board is pleased to announce that
it is adopting a distribution policy under which for the
foreseeable future it will pay annual dividends in excess of 50% of
its annual profits after tax subject to market and capital
requirements. This total will be split between interim dividends
(1/3) (generally to be paid in the month of November) and final
dividends (2/3) (generally to be paid in the month of May).
The Board has therefore declared an interim dividend for the
six-month period ended 30 April of 2.6 pence per Ordinary Share
(the "Interim Dividend"), payable on 3 November 2022 to
shareholders on the register at 14 October 2022, the ex-dividend
date being 13 October 2022.
The Board is also pleased to announce that it has approved an
additional return of approximately GBP24.57 million to shareholders
by way of a special dividend of 6.5 pence per ordinary share (the
"Special Dividend") which will be payable on 1 September 2022 to
shareholders on the register at 12 August 2022, the ex-dividend
date being 11 August 2022. The Directors would like to thank all
shareholders who supported the Company during the Covid pandemic
and feel a special dividend, at this time, is an appropriate way to
return excess capital. This Special Dividend is in addition to the
Interim Dividend, which totals GBP9.84 million, and the anticipated
final dividend for the year ending 31 October 2022.
The level of the Special Dividend takes into account:
1. The Group's capital expenditure programme
2. The intention to maintain a progressive dividend policy
3. The level of distributable reserves available to pay dividends
4. The likelihood of making acquisitions
The Board and Executive team
There have been several changes to the composition of the Board
of Directors. On 29 April 2022, Jean-Marcel Denis resigned as a
Non-executive Director with immediate effect. René Proglio,
Non-executive Director and member of the Audit Committee succeeded
Mr Denis as Chairman of the Audit Committee. On 16 May 2022,
Sigieri Diaz Della Vittoria Pallavicini resigned as an Independent
Non-executive Director for personal reasons with immediate
effect.
On behalf of the Board, I would like to extend our sincere
thanks to Jean-Marcel for his years of dedicated and loyal service
and to Sigieri for his contribution to the Group. We wish them both
all the best for the future.
The Group has a strong Board of Directors, which for some time
has been focused on succession for both Executive and Non-executive
Directors, and the management team. Our Corporate Governance
structure enables the leadership team to work together closely to
deliver our growth strategy. Our Strategic Committee chaired by
Jean-Marc Janailhac, is focused on delivering our strategy and
future developments, new products, new joint ventures,
communication and marketing, commercial, sales force and training,
maintenance, productivity, quality and training - all drivers of
our growth strategy.
Looking ahead
Trading in the first half was strong and ahead of initial
expectations, which was achieved against a backdrop of continued
economic and consumer uncertainty across many of our operating
markets. Cost pressures are being experienced across many
industries and the Group is not immune to these. We have seen a
significant increase in supply chain and raw materials costs.
Nonetheless, our strong proposition and market position gives the
Group significant pricing power. This will help to limit the impact
of these headwinds on the Group's financial performance in the
second half and FY23 whilst we continue to innovate and diversify
our operations and attract new customers and consumers.
As previously announced, the Board believes that following the
strong first half the Group's performance for the year ending 31
October 2022 will show revenue growth of not less than 20% compared
with FY 2021 whilst EBITDA is now expected to be in the range of
GBP79 to GBP84 million and adjusted profit before tax is expected
to be in the range of GBP47 million to GBP50 million, assuming that
Covid-19 or other social restrictions are not re-imposed in our key
markets.
CHIEF EXECUTIVE'S BUSINESS AND FINANCIAL REVIEW
Financial performance
Reported revenue for the six months ended 30 April 2022 was
GBP115.3 million, an increase of 21.9% compared with the six months
ended 30 April 2021 ("H1 2021"), mainly driven by a strong recovery
across our markets in Continental Europe, the UK and the Republic
of Ireland. Trading in Asia was more subdued due to endemic
Covid-19 cases remaining at a higher level and consequently social
restrictions remaining in place for a longer period of time.
The performance of our laundry operations was very strong, with
revenue up 8.4% compared with H1 2021. Our photobooth business
benefitted from pent-up demand for passports and other official
documents and product delivered via our photobooth estate. This
resulted in revenue increasing by 27.4%.
Reported EBITDA (excluding associates) increased by 40.1% to
GBP40.2 million (H1 2021: GBP28.7 million), which delivered an
EBITDA margin of 34.9% (H1 2021: 30.3%).
Reported profit before tax was 65.8% higher at GBP19.9 million
(H1 2021: GBP12.0 million). Adjusted profit before tax (after
specific items) was up 24.0% to GBP16.0 million (H1 2021: GBP12.9
million).
The table below provides a reconciliation of reported profit
before tax to adjusted profit before tax.
Six months Six months
ended 30 April ended
2022 30 April 2021
---------------------------------------------- --------------- --------------
Reported profit before tax GBP19.9m GBP12.0m
Specific items - restructuring costs - GBP0.3m
Specific items - impairments - GBP1.3m
Specific items - sales of Inox assets - GBP(0.7)m
Specific items - sale of property, provisions GBP(4.4)m -
Other losses - loss on La Wash disposal GBP0.5m -
Adjusted profit before tax GBP16.0m GBP12.9m
---------------------------------------------- --------------- --------------
The Group remained cash flow positive, with significantly
improved cash generated from operations of GBP29.8 million (H1
2021: GBP22.4 million).
We continue to invest in future growth. Excluding intangibles,
capital expenditure was GBP14.4 million, mainly related to laundry
capex of GBP8.5 million and investment in VIP box of GBP1.3 million
(H1 2021: GBP22.5 million). Capex decreased for two reasons in the
Period. Firstly, photobooth capex was temporarily kept at a low
level ahead of significant investment when the next generation
machines are ready to be installed. Secondly, the rate of
Revolutions installations slowed down due to supply chain
constraints.
Funding and liquidity
As at 30 April 2022, the Group had gross cash of GBP96.8 million
and a net cash balance of GBP43.2 million. The Group continues to
comply with its banking covenants. We did not have the benefit of
any government facilities in the Period.
The Board continues to believe it has sufficient liquidity to
navigate potential headwinds from the pandemic.
Overview of principal business areas
Below is an overview of the Group's four principal business
areas: Identification (Photo.ME), Laundry (Wash.ME), Kiosks
(Print.ME) and Food (Feed.ME). In addition, the Group operates
other vending equipment.
Photo.ME Photobooths and integrated biometric identification solutions
Six months Six months Change
ended 30 April ended 30 April
2022 2021
--------------- --------------- -------
Number of units in operation 27,617 28,095 (1.7)%
% of total Group vending estate
(units) 63.7% 62.9% 1.3%
Total revenue GBP66.9m GBP52.5m 27.4%
Capex GBP1.4m GBP3.3m (57.6)%
EBITDA GBP23.5m
Having been severely impacted by the pandemic, as restrictions
were eased and consumers were able to travel and socialise again,
we saw strong Photo ID demand for passports and other official
documentation, as well as other products delivered via our
photobooth estate. This was particularly the case in France, and
also in the UK despite the Government's acceptance of home taken
photos for official documents. In Asia activity levels were still
curtailed by some restrictions during the Period, however we are
confident that activity levels will return once these restrictions
are eased.
In the UK, we have successfully mitigated the decline in revenue
experienced due to the introduction of home taken ID photos through
the implementation of various marketing initiatives, machine
maintenance and the removal of unprofitable machines. As a result,
average revenue and visits per machine have increased by 22% and
58% respectively when compared with pre-pandemic levels (in 2019).
In addition, our partnership with Her Majesty's Passport Office
('HMPO') and our secure digital upload technology direct to the UK
Government server via our photobooths avoids verification delays
that can otherwise be experienced when using self-taken photos.
This further underpins the long-term future of our photobooth
estate.
During Q2 2022, we reviewed the end-user pricing of our
photobooths and the cost per use was increased by 33% from EUR6 to
EUR8. This change in price has not impacted consumer demand to date
and we plan to implement similar price increases across most of our
operating markets during H2. The full benefit of this will be
evident in FY 2023.
The average revenue per machine (excluding VAT) was GBP4,941 per
year. EBITDA was 35.1% of the revenue during the period
(six-month). Due to seasonality, this performance is expected to be
higher in the second half of the financial year (31 October
2022).
As a consequence of the above, revenue grew by 27.4% to GBP66.9
million (H1 2021: GBP52.5 million) representing 58% of Group
revenue. EBITDA was GBP23.5 million, contributing 63.9% of Group
EBITDA (excluding the property sale).
Capex reduced by 57.6% to GBP1.4 million. The decision was taken
to pause investment in photobooth capex until our next generation
photobooth is available for installation in H1 2023, at which point
we will extensively invest in this business area.
At 30 April 2022, the total number of photobooths in operation
had reduced by 1.7% to 27,617 units, reflecting the restructuring
programme undertaken in FY 2021. Photo.ME operations accounted for
63.7% of the Group's total vending units.
Innovation and new product development
Our photobooth business has showed its resilience and stability
by returning to pre-pandemic levels of activity. It remains an
important part of our long-term growth strategy and we are
continuing to evolve our offer as to attract new users of our
equipment, supported by our marketing activities.
The digital transformation of both the photobooth and print
kiosk businesses has been a priority for the Group, evolving our
offer from a hardware- to cloud-based architecture. This
fundamental paradigm change in technology is still in development
stage.
Our face ID anti-spoofing technology was recognised as compliant
under international Biometrics Presentation Attack Detection
standards (ISO/IEC 30107-3) by the French biometrics and security
technologies experts at Cabinet Louis Reynaud Labs ("CLR
Labs").
We are developing entertainment functions and fun products
within our photobooths to meet the needs of the younger generation,
including social media and sharing functions. We acquired VIP Box,
the French leader in selfie station event rentals in April 2022,
which strengthens our offering in the photo-entertainment market.
This acquisition will help to further extend our leadership and
influence in the photobooth and print kiosk markets across the
event sector internationally.
In addition, we are developing multiservice photobooths and
kiosks to integrate the consumer journey into specific omnichannel
automated services. We plan to deploy or exchange next generation
photobooths starting from H1 2023 for three next year, up to a
total of 10,000 machines.
Wash.ME Unattended Revolution laundry services and launderettes
Six months Six months Change
ended ended
30 April 30 April
2022 2021
---------- ---------- -------
Total laundry units deployed (owned,
sold, acquisitions) 5,565 5,298 5.0%
Total revenue from laundry operations GBP25.9m GBP23.9m 8.4%
Revolution (excludes Launderettes):
Number of Revolution units in operation 4,360 3,762 15.9%
% of total Group vending estate (number
of units) 10.1% 8.4% 19.8%
Total revenue from Revolution GBP25.3m GBP18.4m 37.5%
Revolution capex GBP8.5m GBP8.1m 4.9%
EBITDA GBP13.2m
Total revenue from laundry operations grew by 8.4% to GBP25.9
million, driven by continued growth of our Revolution laundry
estate. The total number of laundry units deployed (owned, sold,
acquired) has increased 5.0%. However the Group has sold La Wash
and following this disposal we no longer operate B2B laundry
services except for a small level of activity in Ireland.
Growth of the number of Revolution installations was
significantly impacted by supply chain constraints.
Revolution laundry operations
Revolution laundry operations performed very strongly. The
number of units in operation increased by 15.9%, with an average of
50 units installed per month. Revolution machines now account for
10.1% of the total Group vending estate by number of units (H1
2021: 8.4%) and remain a key driver of growth.
Revenue from Revolution operations grew by 37.5% to GBP25.3
million, reflecting our continued emphasis on expanding our laundry
activities and representing 21.9% of Group revenue. EBITDA was
GBP13.2 million, contributing 35.9% of Group EBITDA (excluding
property sale).
As a result, average revenue per machine excluding VAT was
GBP12,884 per year. EBITDA was 52.2% of the revenue in HY1 2022.
Due to seasonality, this performance is expected to be higher in
the second half of the financial year.
Revolution capex increased by 4.9% to GBP8.5 million to fund
expansion, primarily in UK, Ireland, Portugal and France.
We have continued to deliver on our sustainability commitment
and reduce our impact on the environment. To date, we have
installed 223 Photovoltaic solar panels on Revolution units in
France.
Innovation and new product development
We launched our new low-cost Revolution laundry machine, the
"Flex", to expand our product range and extend our distribution of
launderettes into co-living locations and at retailers with limited
available footprint. This indoor and outdoor line-up unit is based
on our recently developed modular configuration self-service
laundry range. Several installations across Europe have been
successfully completed and early trading results have been
extremely positive. The Group aims to further deploy this new
product rapidly across Continental Europe to take advantage of the
strong market opportunity.
In addition, the Revolution Laundry Compact V3 has been a
commercial success everywhere in Europe and this success continues
to grow. It will slowly be replaced by the "Optimus" model in the
coming months, an" industrial concept bringing substantial savings
in production costs and flexibility of deployment.
Print.ME High-quality digital printing service
Six months Six months Change
ended Ended
30 April 30 April
2022 2021
Number of units in operation 4,848 5,211 (7.0)%
% of total Group vending estate (units) 11.2% 11.7% (4.4)%
Revenue GBP5.2m GBP6.0m (13.3)%
Capex GBP0.1m GBP0.2m (50.0)%
EBITDA GBP1.6m
The total number of kiosks in operation at 30 April 2022 was
4,848, a reduction of 7.0% due to the removal of unprofitable
machines which were relocated to France. Kiosks accounted for 11.2%
of the total number of vending units in operation.
Revenue was GBP5.2 million, a decrease of 13.3%, due to a
decline in average revenue per machine and the removal of machines
and representing 4.5% of Group revenue, EBITDA was GBP1.6 million,
contributing 4.2% of Group EBITDA.
The average revenue per machine (excluding VAT) was GBP2,172 per
year. EBITDA was 30.8% of the revenue on HY1 2022. Due to
seasonality, this performance will of course be higher for the full
year ending 31 October 2022.
In line with the Group's ongoing strategy to limit kiosk
investment to premium sites and its focus on expansion of laundry
operations, kiosks capex was 50% lower in the Period at GBP0.1
million.
The Group plans to refresh its kiosk machines portfolio during
H2 2022 by investing in 500 new kiosks in France.
Feed.ME Vending equipment for the food service market
Vending equipment for the food service market is the newest of
the Group's business areas. Operations and new product development
are currently focused on two areas (i) self-service fresh fruit
juice equipment for the B2B market and (ii) pizza vending machines
targeted at the B2B hospitality market (restaurants,
takeaways).
Revenue solely from the sale of equipment was GBP3.1 million and
this business area contributed 2.7% to Group revenue. EBITDA was
GBP1.2 million, contributing 3.2% of Group EBITDA (excluding the
property sale).
Fresh fruit juice equipment
Progress was made to expand our presence in the self-service
fruit juice equipment market and offer a wider variety of
self-service fresh juice options in all territories where the Group
has an existing footprint. Following delays due to the pandemic,
the Group's professional apple and pineapple machines were
installed across France, Belgium and Japan. Furthermore, nine of
the Group's innovative 'juice wall concept' were deployed in the
Period.
Pizza vending equipment
Our pizza vending machines offer consumers pizzas 24/7 which are
ready to eat in four minutes. The machines are sold or leased to
site owners. Our strategy is to enhance our presence in the pizza
vending equipment market, with the aim of becoming a leader in the
European market.
To date, we have accelerated the rate of installations to an
average of 20 per month in France and have plans to deploy further
machines in Spain, Belgium and the Netherlands.
Our goal is to scale this up to c.100 machines per month by the
end of 2023 across additional geographies, including the UK,
Switzerland and Belgium.
Innovation and new product development
Our professional fresh fruit juice range is due to be expanded
in coming months, to include grape, kiwi, and pear products.
In May 2022, we announced a technological partnership with
groundbreaking digital platform Digitiz.me, which will accelerate
the Group's development in the fast-growing connected food vending
market.
Digitiz.me supports the digitisation of food vending machines,
enabling professionals in the food and wider hospitality sector to
work with a powerful omnichannel platform that enables them to
easily connect to their equipment via the web, mobile or
interactive terminals, and from a single interface. Through the
partnership, omnichannel software offering an all-in-one complete
solution will be rolled out across all ME Group food vending
equipment to offer consumers an easy and integrated experience.
This will revolutionize the way our food vending machines function
and deliver value for our partners.
In June 2022 we launched Boxpresso, our new connected fridge, in
partnership with Digitiz.me. This kiosk combines our two unique
technologies of integrated omnichannel software and 'Ovenbox'
packaging, which enables pizzas to be stored and cooked all in one
box, providing consumers a quality product and a seamless user
experience.
We also plan to launch 64-pizza Multiquattro V3 and 96-pizza
capacity kiosks in October 2022, with a completely new design as
well as a new industrialization process that will enable us to
decrease production costs and optimize logistics costs.
Other vending equipment
At 30 April 2022, the Group operated 6,460 other vending units,
such as children's rides, photocopiers and other miscellaneous
machines (H1 2021: 7,509).
These machines are primarily situated alongside our principal
activities, and benefit from existing site owner relationships and
where operating synergies can be captured, such as leveraging the
same 650-strong field engineer and maintenance network.
During the pandemic a number of these machines were unprofitable
and were removed from the estate as part of the restructuring
program. As a result, other vending equipment accounts for 14.9% of
the Group's total vending estate by number of units (H1 2021:
16.8%) and 3.6% of the total Group revenue (H1 2021: 5.7%).
REVIEW OF PERFORMANCE BY GEOGRAPHY
The Group's financial performance is set out below, in line with
the segments as operated by the Board and the management of
Photo-Me and is consistent with the information prepared to support
the Board's decision-making. Although the Group is not managed
around product lines, some commentary below relates to the
performance of specific products in the relevant geographies.
Vending units in operation
At 30 April 2022 At 30 April 2021 Change
No. of % of total No. of % of total
units units
-------------------- ------- ----------- ------- ----------- --------
Continental Europe 25,047 57.8% 24,913 55.8% 0.5%
UK & Republic
of Ireland 6,874 15.9% 8,356 18.7% (17.7)%
Asia Pacific 11,415 26.3% 11,371 25.5% 0.4%
-------------------- ------- ----------- ------- ----------- --------
Total 43,336 100.0% 44,640 100.0% (2.9)%
-------------------- ------- ----------- ------- ----------- --------
The total number of vending units in operation at 30 April 2022
reduced by 2.9% to 43,336 (at 30 April 2021: 44,640), reflecting
the removal of unprofitable machines as part of our restructuring
programme. Likewise, the decline in the UK & Republic of
Ireland is due to the removal of 1,482 unprofitable machines
(mainly children's rides and photobooths).
Key financials
The Group reports its financial performance based on three
geographic regions of operation:
(i) Continental Europe; (ii) the UK & Republic of Ireland;
and (iii) Asia Pacific.
Revenue by geographic region
Six months ended Six months ended Change
30 April 2022 30 April 2021
------------------------- ----------------- ----------------- -------
Continental Europe GBP75.6m GBP58.7m 28.8%
UK & Republic of Ireland GBP19.9m GBP13.3m 49.6%
Asia Pacific GBP19.8m GBP22.5m (12.0)%
------------------------- ----------------- ----------------- -------
Total GBP115.3m GBP94.6m 21.9%
------------------------- ----------------- ----------------- -------
Operating profit by geographic region
Six months ended Six months ended Change
30 April 2022 30 April 2021
------------------------- ----------------- ----------------- -------
Continental Europe GBP17.0m GBP10.1m 68.3%
UK & Republic of Ireland GBP4.2m GBP2.0m 110.0%
Asia Pacific GBP1.9m GBP2.7m (29.6)%
Corporate costs GBP(1.6)m GBP(1.3)m (23.1)%
------------------------- ----------------- ----------------- -------
Total GBP21.5m GBP13.4m 59.3%
------------------------- ----------------- ----------------- -------
Operating revenue evolution (last six months by quarter)
The table below provides a detailed breakdown of operating
revenue evolution by geographic region and business area in Q1 FY
2022 vs November 2020 to January 2021, Q2 FY 2022 vs February to
April 2021 and H1 2022 vs November 2020 to April 2021.
Q1 Q2 H1 2022
Nov 2021 Feb 2022 Nov 2021
to Jan 2022 to Apr 2022 to Apr 2022
-------------------- ------------ ------------ -------------
CONTIENTIAL EUROPE
Photo.ME 40% 39% 40%
Print.ME -13% -8% -11%
Wash.ME 33% 29% 31%
Other Vending -24% 5% -12%
-------------------- ------------ ------------ -------------
Total 28% 31% 30%
-------------------- ------------ ------------ -------------
UK & REPUBLIC OF
Ireland
Photo.ME 82% 125% 106%
Print.ME -30% -84% -56%
Wash.ME 53% 43% 48%
Other Vending 92% 107% 98%
-------------------- ------------ ------------ -------------
Total 63% 82% 72%
-------------------- ------------ ------------ -------------
ASIA
Photo.ME 2% -28% -17%
Print.ME -6% -20% -13%
Wash.ME 78% 83% 80%
Other Vending 528% 72% 127%
-------------------- ------------ ------------ -------------
Total 9% -23% -11%
-------------------- ------------ ------------ -------------
TOTAL
Photo.ME 31% 19% 24%
Print.ME -14% -13% -14%
Wash.ME 39% 33% 36%
Other Vending 43% 48% 45%
-------------------- ------------ ------------ -------------
Total 29% 21% 25%
-------------------- ------------ ------------ -------------
Continental Europe
Revenue increased by 28.8% to GBP75.6 million, driven by a
strong performance in photobooth and laundry activity throughout
the first half, particularly in France. France also gradually
benefited in Q2 from increased consumer pricing at the point of use
from EUR6 to EUR8 for official documents.
Photo.ME and Wash.ME operating revenue were up 40% and 31%
respectively in H1. Print.ME and Other vending operations saw a
slower recovery, but notably demand improved in Q2. The region
contributed 65.6% of total Group revenue. Operating profit
increased by 68.3% to GBP17.0 million.
We sold an office building for GBP7.1 million in April 2022,
which had a GBP4.4 million positive impact on profit before tax. In
November 2021 we sold La Wash, our Spanish B2B laundry service
franchise business at a loss of GBP(0.5) million.
As at 30 April 2022, there were 25,038 units in operation in the
region, which represented 57.8% of the Group's total vending
estate. Continental Europe remains the largest region of operation
by both machine volume and contribution to total Group revenue.
UK & Republic of Ireland
Revenue was up 49.6% to GBP19.9 million primarily driven by a
strong performance in photobooth (Photo.ME) and laundry (Wash.ME)
activity.
Operating revenue from Photo.ME was up 106%, due to a
significant increase in demand for photo ID for passports and
official documents. This business area was severely impacted during
the pandemic, however as Photo ID demand rose, traditional
photobooth activity became stronger. Home taken photo ID had a
limited impact on activity.
Wash.ME also performed strongly, with operating revenue up 48%.
Revolution units in operation in the region increased by 115 units
compared with H2 2022.
Other vending equipment, which was also severely impacted by
restrictions during the pandemic, saw operating revenue recover, up
98%.
Operating profit increased by 110% to GBP4.2 million, which
reflected the successful restructuring programme in the region,
which included the removal of unprofitable machines and bolstering
of the management team in the region.
As at 30 April 2022, 6,874 units were in operation, a reduction
of 17.7%, which represents 15.9% of the Group's total vending
estate.
Asia Pacific
Performance was hampered by ongoing Covid-19 restrictions during
the Period, notably in Japan in Q2. Trading conditions in China
have also remained challenging. Consequently, revenue in the region
decreased by 12.0% to GBP19.8 million.
Operating revenue in the region for Photo.ME and Print.ME was
down 17% and 13% respectively. While laundry activities were more
resilient, with Wash.ME operating revenue up 80%, and other vending
equipment was up 127%, operating profit was therefore GBP1.9
million, a decline of 29.6%.
As at 30 April 2022, 11,415 units were in operation, an increase
of 0.4%. Units situated in Asia Pacific represented 26.3% of the
Group's total units in operation.
The Board is confident that trading in Japan will return when
restrictions are eased, as has been the case so successfully in
Europe, which bodes well for the coming months.
PRINCIPAL RISKS
Similar to any business, the Group faces risks and uncertainties
that could impact the achievement of the Group's strategy. These
risks are accepted as inherent to the Group's business. The Board
recognises that the nature and scope of these risks can change; it
therefore 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.
ECONOMIC
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
COVID-19 COVID-19 has continued The Group continues to
to cause disruption monitor the COVID-19 situation
to worldwide markets closely particularly given
and supply chains, including the emergence of the Omicron
those that Photo-Me variant of COVID-19, and
operates within. In continually reviews operational
the UK government guidance practices, updating its
around COVID-19, especially practices in line with
in light of the Omicron government guidelines
variant, continued to and other relevant guidance.
evolve and restrict
footfall through the The pandemic cleaning
course of 2021. regime continues, to help
reduce the risk of cross
contamination between
the Company's customers.
Measures taken include
providing employees with
face shields, surgical
masks, gloves, hand sanitizer.
The cleaning equipment
additions such as SD90
and DEW remain in use.
Global economic conditions Economic growth has The Group focuses on maintaining
a major influence on the characteristics and
consumer spending. affordability of its needs-driven
products.
A sustained period of
economic recession and
a period of high inflation Like most businesses around
could lead to a decrease the world, the Group has
in consumer expenditure had to face a significant
in discretionary areas. increase in supply chain
and raw material costs,
however, its strong position
in the markets in which
it operates gives the
Group significant pricing
power.
The Group has no exposure
to the invasion of Ukraine
by Russia.
Volatility of foreign The majority of the The Group hedges its exposure
exchange rates Group's revenue and to currency fluctuations
profit is generated on transactions, as relevant.
outside the UK, and However, by its nature,
the Group's financial in the Board's opinion,
results could be adversely it is very difficult to
impacted by an increase hedge against currency
in the value of sterling fluctuations arising from
relative to translation in consolidation
those currencies. in a cost- effective manner.
REGULATIONS
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
Centralisation of In many European countries The Group has developed
the production of where the Group operates, new systems that respond
ID photos if governments were to this situation, leveraging
to implement centralised 3D technology in ID security
image capture, for biometric standards, and securely
passport and other applications, linking our booths to
or widen the acceptance the administration repositories.
of self-made or home- Solutions are in place
made photographs for in France, Ireland, Germany,
official document applications, Switzerland and the UK;
the Group's revenues discussions in Belgium
and profits could be and The Netherlands).
affected.
Furthermore, the Group
also ensures that its
ID products remain affordable
and of a high-quality.
Brexit The UK left the EU on The Board is continually
31 January 2020. This reviewing the potential
has led to changes in impact on the Group's
UK regulations as modifications operations following the
to numerous arrangements UK's leaving the EU.
between the UK and other
members of the EU and Any potential developments,
EEA, affecting trade including new information
and customs conditions, and policy indications
taxation, movements from the UK Government
of resources, among and the EU, is scrutinised
other things. with a view to enhancing
the Group's ability to
take appropriate action
targeted at managing and,
where possible, minimising
adverse repercussions
of Brexit.
The specific impact of
Brexit on the Group will
depend on the details
of any potential renegotiation
of the Brexit deal between
the UK and the EU.
The business carried out
post-transition impact
assessments to include
all customs documentation,
licences, permits, consents,
certificates, rules of
origin, commodity codes,
and delays at the borders.
The Board foresees that
in the short-term the
negative impact of the
uncertainty overshadowing
the general UK economy
could spill over into
the Group's UK operations.
STRATEGIC
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
Identification of The failure to identify Management teams constantly
new business opportunities new business areas may review demand in existing
impact the ability of markets and potential
the Group to grow in new opportunities. The
the long-term. Group continues to invest
in research in new products
and technologies. Furthermore,
the Group also ensures
that its ID products remain
affordable and of a high-quality.
Inability to deliver The realisation of long-term The Group regularly monitors
anticipated benefits anticipated benefits the performance of its
from the launch of depends mainly on the entire estate of machines.
new products continued growth of New technology-enabled
the laundry and food secure ID solutions are
businesses and the successful heavily trialled before
development of integrated launch and the performance
secure ID solutions. of operating machines
is continually monitored.
MARKET
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
Commercial relationships The Group has well-established, The Group's major key
long-term relationships relationships are supported
with a number of site-owners. by medium-term contracts.
The deterioration in The Group actively manages
the relationship with, its site-owner relationships
or ultimately the loss at all levels to ensure
of, a key account would a high quality of service.
have an adverse, albeit
contained, impact on
the Group's results,
bearing in mind that
the Group's turnover
is spread over a large
client base and none
of the accounts represent The Group continues to
more than 2% of Group monitor the situation
turnover. in both the French and
the UK markets.
To maintain its performance,
the Group needs to have
the ability to continue
trading in good conditions
in France and the UK,
taking into account
the situation in these
two countries.
OPERATIONAL
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
Reliance on foreign The Group sources most Extensive research is
manufacturers of its products from conducted into quality
outside the UK. Consequently, and ethics before the
the Group is subject Group procures products
to risks associated from any new country or
with international trade. 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 The Group currently The Board has decided
supplier of consumables buys all its paper for to hold a strategic stock
photobooths from one of paper, allowing for
single supplier. The 6-10 months' worth of
failure of this supplier paper consumption, to
could have a significant allow enough time to put
adverse impact on paper in place alternative solutions.
procurement.
Reputation The Group's brands are The protection of the
key assets of the business. Group's brands in its
Failure to protect the core markets is sustained
Group's reputation and by products with certain
brands could lead to unique features. The appearance
a loss of trust and of the machine is subject
confidence. This could to high maintenance standards.
result in a decline Furthermore, the reputational
in our customer base. risk is diluted as the
Group also operates under
a range of brands.
Product and service The Board recognises The Group continues to
quality that the quality and invest in its existing
safety of both its products estate, to ensure that
and services is of critical it remains contemporary,
importance and that and in constant product
any major failure will innovation to meet customer
affect consumer confidence. needs.
The Group also has a program
in place to regularly
train its technicians.
TECHNOLOGICAL
Nature of risk Description and impact Mitigation
------------------------------- ------------------------------------- -------------------------------------
Failure to keep up The Group operates in The Group mitigates this
with advances in fields where upgrades risk by continually focusing
technology to new technologies on R&D.
are critical.
Cyber risk: Third The Group operates an The Group undertakes an
party attack on secure increasing number of ongoing assessment of
ID data transfer photobooths capturing the risks and ensures
feeds ID data and transferring that the infrastructure
these data directly meets the security requirements.
to government databases.
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 April 2022
Unaudited Unaudited Audited
Six months Six months 12 months
to 30 to 30 April to 31 October
April 2021 2021
2022
Notes GBP '000 GBP '000 GBP '000
---------------------------------------------- ------- ------------- ------------ -----------------
Revenue 3 115,261 94,581 214,404
Cost of sales (85,634) (69,019) (161,467)
---------------------------------------------- ------- ------------- ------------ -----------------
Gross profit 29,627 25,562 52,937
Other operating income 159 156 317
Administrative expenses (8,268) (12,289) (23,919)
Operating Profit 3 21,518 13,429 29,335
Other net gains/(losses) 4 (462) 20 1,998
Finance income 19 - 177
Finance cost (1,129) (1,442) (2,955)
---------------------------------------------- ------- ------------- ------------ -----------------
Profit before tax 19,946 12,007 28,555
Total tax charge 5 (3,514) (2,611) (6,703)
---------------------------------------------- ------- ------------- ------------ -----------------
Profit for the period 16,432 9,396 21,852
---------------------------------------------- ------- ------------- ------------ -----------------
Other comprehensive income
---------------------------------------------- ------- ------------- ------------ -----------------
Items that are or may subsequently
be classified to Profit and Loss:
Exchange differences arising on translation
of foreign operations 120 (1,402) (6,987)
Taxation on exchange differences - (7) -
---------------------------------------------- ------- ------------- ------------ -----------------
Total Items that are or may subsequently
be classified to
profit and loss 120 (1,409) (6,987)
---------------------------------------------- ------- ------------- ------------ -----------------
Items that will not be classified
to profit and loss:
Remeasurement gains in defined benefit
obligations and other post-employment
benefit obligations - - 560
Deferred tax on remeasurement gains - - (94)
---------------------------------------------- ------- ------------- ------------ -----------------
Total Items that will not be classified
to Profit and Loss - - 466
---------------------------------------------- ------- ------------- ------------ -----------------
Other comprehensive (expense)/income
for the period
net of tax 120 (1,409) (6,521)
---------------------------------------------- ------- ------------- ------------ -----------------
Total Comprehensive income/(expense)
for the period 16,552 7,987 15,331
---------------------------------------------- ------- ------------- ------------ -----------------
Profit for the Year Attributable
to:
Owners of the Parent 16,432 9,396 21,713
Non-controlling interests - - 139
---------------------------------------------- ------- ------------- ------------ -----------------
16,432 9,396 21,852
---------------------------------------------- ------- ------------- ------------ -----------------
Total comprehensive income attributable
to:
Owners of the Parent 16,552 8,044 15,192
Non-controlling interests - (57) 139
---------------------------------------------- ------- ------------- ------------ -----------------
16,552 7,987 15,331
---------------------------------------------- ------- ------------- ------------ -----------------
Earnings per Share
---------------------------------------------- ------- ------------- ------------ -----------------
Basic Earnings per Share 7 4.35p 2.49p 5.78p
Diluted Earnings per Share 7 4.35p 2.48p 5.77p
---------------------------------------------- ------- ------------- ------------ -----------------
All results derive from continuing operations.
The accompanying notes form an integral part of these condensed
consolidated financial statements.
GROUP CONDENSED STATEMENT OF FINANCIAL POSITION
as at 30 April 2022
Unaudited Unaudited Audited
30 April 30 April 31 October
2022 2021 2021
Notes GBP'000 GBP'000 GBP'000
------------------------------- ----- --------- --------- -----------
Assets
Goodwill 8 19,272 13,675 17,642
Other intangible assets 8 14,088 17,212 16,860
Property, plant & equipment 8 88,337 93,776 91,973
Investment property 8 585 662 597
Investment in associates 21 56 21
Financial instruments held
at FVTPL 1,501 957 1,501
Trade and other receivables 1,789 1,742 1,868
------------------------------- ----- --------- --------- -----------
Non-current assets 125,593 128,041 130,462
------------------------------- ----- --------- --------- -----------
Inventories 21,737 18,022 18,458
Trade and other receivables 19,197 20,419 22,451
Current tax 3,273 55 1,417
Cash and cash equivalents 9 96,757 96,257 99,362
------------------------------- ----- --------- --------- -----------
Current assets 140,964 134,753 141,688
------------------------------- ----- --------- --------- -----------
Total assets 266,557 262,794 272,150
------------------------------- ----- --------- --------- -----------
Equity
Share capital 1,889 1,889 1,889
Share premium 10,599 10,599 10,599
Translation and other reserves 9,566 14,962 9,435
Retained earnings 121,207 92,775 106,051
------------------------------- ----- --------- --------- -----------
Equity attributable to
owners of the Parent 143,261 120,225 127,974
Non-controlling interests - 1,632 1,720
------------------------------- ----- --------- --------- -----------
Total Shareholders' funds 143,261 121,857 129,694
------------------------------- ----- --------- --------- -----------
Liabilities
Financial liabilities 9 45,523 41,653 55,058
Post-employment benefit
obligations 4,888 5,510 4,933
Deferred tax liabilities 7,781 6,737 8,571
Provisions - - 338
------------------------------- ----- --------- --------- -----------
Non-current liabilities 58,192 53,899 68,900
------------------------------- ----- --------- --------- -----------
Financial liabilities 9 21,665 46,542 25,877
Provisions 1,351 411 1,828
Current tax 688 1,506 3,367
Trade and other payables 41,400 38,579 42,484
------------------------------- ----- --------- --------- -----------
Current liabilities 65,104 87,038 73,556
------------------------------- ----- --------- --------- -----------
Total equity and liabilities 266,557 262,794 272,150
------------------------------- ----- --------- --------- -----------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
GROUP CONDENSED STATEMENT OF CASH FLOWS
for the six months ended 30 April 2022
Unaudited Unaudited Audited 12
Six months Six months months to
to to 31 October
30 April 30 April 2021
2022 2021
Notes GBP000 GBP000 GBP000
------------------------------------------- ------ ---------------- ---------------- ------------------
Cash flow from operating activities
Profit before tax 19,946 12,007 28,555
Finance cost 1,129 1,442 2,955
Finance income (19) - (177)
Other losses/( gains) 462 (20) (1,998)
--------------------------------------------------- ---------------- ---------------- ------------------
Operating profit/(loss) 21,518 13,429 29,335
--------------------------------------------------- ---------------- ---------------- ------------------
Amortisation of intangible assets 4,030 1,837 5,419
Depreciation of property, plant
and equipment 14,620 11,760 30,328
(Profit)/loss on sale of property,
plant and equipment (7,277) 767 (368)
Exchange differences (348) (156) (355)
Other items (812) (604) 680
Changes in working capital:
Inventories (3,279) (1,411) (1,847)
Trade and other receivables 3,333 (3,679) (5,780)
Trade and other payables (1,084) (1,172) 8,278
Provisions (863) 1,616 400
--------------------------------------------------- ---------------- ---------------- ------------------
Cash generated from operations 29,837 22,387 66,090
--------------------------------------------------- ---------------- ---------------- ------------------
Interest paid (1,129) (365) (2,956)
Taxation paid (8,839) (6,015) (9,269)
--------------------------------------------------- ---------------- ---------------- ------------------
Net cash generated from operating
activities 19,869 16,007 53,865
--------------------------------------------------- ---------------- ---------------- ------------------
Cash flows from investing activities
Acquisition of subsidiaries net
of cash acquired (739) (6,575) (10,133)
Acquisition of minority interest (2,985)
Proceeds from sale of subsidiary 152 - 1,050
Investment in intangible assets (1,266) (691) (2,529)
Purchase of property, plant and
equipment (13,123) (15,993) (26,376)
Proceeds from sale of property,
plant and equipment 7,945 1,235 3,904
Interest received 19 106 73
Dividends received from associates - - 104
--------------------------------------------------- ---------------- ---------------- ------------------
Net cash utilised in investing
activities (9,997) (21,918) (33,907)
--------------------------------------------------- ---------------- ---------------- ------------------
Cash outflows from financing activities
Repayment of capital element of
finance leases (2,105) (181) (4,600)
Repayment of borrowings (9,862) (11,137) (22,365)
Increase in borrowings 186 6,310 5,093
Decrease in assets held to maturity - - 25
Net cash utilised in financing
activities (11,781) (5,008) (21,847)
--------------------------------------------------- ---------------- ---------------- ------------------
Net Decrease in cash and cash equivalents (1,909) (10,947) (1,899)
Cash and cash equivalents at beginning
of year 99,362 107,177 107,177
Exchange loss on cash and cash
equivalents (696) - (5,926)
--------------------------------------------------- ---------------- ---------------- ------------------
Cash and cash equivalents at end
of year 9 96,757 96,257 99,362
------------------------------------------- ------ ---------------- ---------------- ------------------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 April 2022
Share Share Other Translation Retained Attributable Non- Total
capital premium reserves reserve earnings to owners controlling
of the interests
Parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
At 1 November 2020 1,889 10,599 1,781 14,533 83,379 112,181 1,689 113,870
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Profit for period - - - - 9,396 9,396 - 9,396
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Other comprehensive
expense
Exchange differences - - - (647) - (647) (57) (704)
Tax on exchange - - - (7) - (7) - (7)
Transfers between
reserves - - - (698) - (698) - (698)
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Total other
comprehensive
expense - - - (1,352) - (1,352) (57) (1,409)
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Total comprehensive
(expense)/income - - - (1,352) 9,396 8,044 (57) 7,987
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
At 30 April 2021 1,889 10,599 1,781 13,181 92,775 120,225 1,632 121,857
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Share Share Other Translation Retained Attributable Non- Total
capital premium reserves reserve earnings to owners controlling
of the interests
Parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
At 1 November 2021 1,889 10,599 1,781 7,654 106,051 127,974 1,720 129,694
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Profit for period - - - - 16,432 16,432 - 16,432
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Other comprehensive
expense
Exchange differences - - - 131 - 131 (11) 120
Total other
comprehensive
expense - - - 131 - 131 (11) 120
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Total comprehensive
(expense)/income - - - 131 16,432 16,563 (11) 16,552
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Acquisition of minority - - - - (1,276) (1,276) (1,709) (2,985)
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
Total transactions
with owners of the
parent - - - - (1,276) (1,276) (1,709) (2,985)
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
At 30 April 2022 1,889 10,599 1,781 7,785 121,207 143,261 - 143,261
------------------------ -------- -------- --------- ----------- --------- ------------ ------------ ---------
The accompanying notes form an integral part of these condensed
consolidated financial statements
NOTES
1. Corporate information
The condensed consolidated interim financial statements of
Photo-Me International plc (the "Company") for the six months ended
30 April 2022 ("the Interim Report") were approved and authorised
for issue by the Board of Directors on 18 July 2021. These
condensed consolidated interim financial statements comprise the
Company and its subsidiaries (together the "Group") and are
presented in pounds sterling, rounded to the nearest thousand.
The Company is a public limited company, incorporated and
domiciled in England, whose shares are quoted on the London Stock
Exchange, under symbol PHTM. Its registered number is 735438 and
its registered office is at Unit 3B, Blenheim Rd, Epsom, KT19 9AP,
Surrey.
Photo-Me's principal activity is the operation of unattended
vending equipment aimed primarily at the consumer market. The
largest part of the estate comprises photobooths and digital
printing kiosks, with the remainder including laundry units,
amusement machines and business service equipment. The Group
manages these on a geographical basis with the principal operations
of the Group in the United Kingdom and Ireland, Continental Europe,
and Asia.
2. Basis of preparation and accounting policies
The financial statements have been prepared in accordance with
IAS 34. The accounting policies applied are consistent with those
that were applied in the Company's consolidated financial
statements for the 12 months ended 31 October 2021 and that are
expected to be applied in its consolidated financial statements for
the year ended 31 October 2022. The condensed consolidated interim
financial statements comprise the unaudited financial information
for the six months ended 30 April 2022. They do not include all of
the information and disclosures required for full annual financial
statements, and should be read in conjunction with the Group's
financial statements for the period ended 31 October 2021. The
condensed financial statements do not constitute statutory accounts
within the meaning of section 434 of the UK Companies Act 2006.
The consolidated financial statements of the Group as at and for
the period ended 31 October 2021 are available at www.me-group.com
or upon request from the Company's registered office at Unit 3B,
Blenheim Rd, Epsom, KT19 9AP, Surrey.
The Interim Report is unaudited but has been reviewed by the
auditors and their report to the Company is included in the Interim
Report. The comparative figures for the financial period ended 31
October 2021 are not the Company's statutory accounts for that
financial year. Those accounts have been reported on by the
Company's auditors and delivered to the Registrar of Companies. The
report of the auditors (i) was unmodified, (ii) did not include a
reference to any matters to which the auditors drew attention by
way of emphasis without modifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
Accounting policies and estimates
The accounting policies applied by the Group in this Interim
Report are the same as those applied in the Group's financial
statements for the 12 months period ended 31 October 2021.
New standards adopted in the period:
There are a number of new and revised standards and
interpretations, not all of which are applicable to the Group,
which have been issued and are effective for the year 2022 and
future reporting periods. The most significant standards and
interpretations were listed in the Group's 2021 Annual Report,
however none of these are likely to have a material impact on the
Group's financial statements.
Estimates and significant judgements
The preparation of the condensed consolidated financial
information requires management to make estimates and assumptions
that affect the reported amounts of revenue, expenses, assets and
liabilities and the disclosure of contingent liabilities at the
date of the condensed consolidated financial information. Such
estimates and assumptions are based on historical experience and
various other factors that are believed to be reasonable in the
circumstances and constitute management's best judgement at the
date of the financial statements. In future, actual experience may
deviate from these estimates and assumptions, which could affect
the financial statements as the original estimates and assumptions
are modified, as appropriate, in the period in which the
circumstances change.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were in the same areas as those that applied
in the consolidated financial statements as at and for the period
ended 31 October 2021.
Use of non-GAAP profit measures
The Group measures performance using earnings before interest,
tax, depreciation and amortisation ("EBITDA"). EBITDA is a common
measure used by a number of companies, but is not defined in
IFRS.
The Group measures cash on a net cash basis as explained in note
8.
Going Concern
The Annual Report for the period ended 31 October 2021 provided
a full description of the Group's business activities, its
financial position, cash flows, funding position and available
facilities together with the factors likely to affect its future
development, performance and position. It also detailed risks
associated with the Group's business. This interim report provides
updated information on these subjects for the six months to 30
April 2022.
The Group has at the date of this Interim Report, sufficient
financing available for its estimated requirements for at least the
next twelve months, together with the proven ability to generate
cash from its trading performance. This provides the Directors with
confidence that the Group is well placed to manage its business
risks successfully in the context of the current financial
conditions and the general outlook in the global economy.
After reviewing the Group's annual budgets, plans and financing
arrangements, the Directors consider that the Group has adequate
resources to continue operating for the foreseeable future and that
it is therefore appropriate to continue to adopt the going concern
basis in preparing this Interim Report.
3. 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 operating profit level before
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 CODM.
Seasonality of operations
Historically, the second half of the financial year is
seasonally the strongest for the Group in terms of profits.
United
Continental Kingdom
Asia Europe & Ireland Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ------- ------------- ---------- ----------- --------
Six months ended 30 April
2022
Total revenue 19,793 80,597 19,866 - 120,256
Inter segment sales - (4,994) (2) - (4,996)
-------------------------------- ------- ------------- ---------- ----------- --------
Revenue from external customers 19,793 75,603 19,864 - 115,261
-------------------------------- ------- ------------- ---------- ----------- --------
EBITDA 4,531 29,262 7,532 (1,157) 40,168
-------------------------------- ------- ------------- ---------- ----------- --------
Depreciation and amortisation (2,638) (12,266) (3,337) (409) (18,650)
-------------------------------- ------- ------------- ---------- ----------- --------
Operating profit excluding
associates 1,893 16,996 4,195 (1,566) 21,518
-------------------------------- ------- ------------- ---------- ----------- --------
Operating profit 21,518
Other gains (462)
Finance income 19
Finance costs (1,129)
-------------------------------- ------- ------------- ---------- ----------- --------
Profit before tax 19,946
Tax (3,514)
-------------------------------- ------- ------------- ---------- ----------- --------
Profit for period 16,432
-------------------------------- ------- ------------- ---------- ----------- --------
Capital expenditure (excluding
right of use assets) 1,725 7,595 3,933 1,136 14,389
-------------------------------- ------- ------------- ---------- ----------- --------
United
Continental Kingdom
Asia Europe & Ireland Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------- ------------- ---------- ----------- --------
Six months ended 30 April
2021
Total revenue 24,012 58,716 13,321 - 96,049
Inter segment sales (1,468) - - - (1,468)
------------------------------- ------- ------------- ---------- ----------- --------
Revenue from external
customers 22,544 58,716 13,321 - 94,581
------------------------------- ------- ------------- ---------- ----------- --------
EBITDA 6,418 19,572 3,908 (1,202) 28,696
------------------------------- ------- ------------- ---------- ----------- --------
Depreciation and amortisation (3,736) (9,507) (1,879) (145) (15,267)
------------------------------- ------- ------------- ---------- ----------- --------
Operating profit excluding
associates 2,682 10,065 2,029 (1,346) 13,429
------------------------------- ------- ------------- ---------- ----------- --------
Operating profit 13,429
Other gains 20
Finance income -
Finance costs (1,442)
------------------------------- ------- ------------- ---------- ----------- --------
Profit before tax 12,007
Tax (2,611)
------------------------------- ------- ------------- ---------- ----------- --------
Profit for period 9,396
------------------------------- ------- ------------- ---------- ----------- --------
Capital expenditure (excluding
right of use assets) 9,782 9,988 2,572 135 22,477
------------------------------- ------- ------------- ---------- ----------- --------
United
Continental Kingdom
Asia Europe & Ireland Corporate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------- ------------- ---------- ----------- --------
12 months ended 31 October
2021
Total revenue 39,751 152,257 29,644 - 221,652
Inter segment sales - (7,248) - - (7,248)
------------------------------- ------- ------------- ---------- ----------- --------
Revenue from external
customers 39,751 145,009 29,644 - 214,404
------------------------------- ------- ------------- ---------- ----------- --------
EBITDA 8,062 54,809 8,587 (6,381) 65,077
------------------------------- ------- ------------- ---------- ----------- --------
Depreciation and amortisation (6,024) (25,174) (3,643) (901) (35,742)
------------------------------- ------- ------------- ---------- ----------- --------
Operating profit excluding
associates 2,038 29,635 4,944 (7,282) 29,335
------------------------------- ------- ------------- ---------- ----------- --------
Operating profit 29,335
Other gains 1,998
Finance income 177
Finance costs (2,955)
------------------------------- ------- ------------- ---------- ----------- --------
Profit before tax 28,555
Tax (6,703)
------------------------------- ------- ------------- ---------- ----------- --------
Profit for period 21,852
------------------------------- ------- ------------- ---------- ----------- --------
Capital expenditure (excluding
right of use assets) 2,993 20,749 5,974 245 29,961
------------------------------- ------- ------------- ---------- ----------- --------
4. Other gains and losses
Six months Six months to 12 months to
to 30 April 31 October
30 April 2021 2021
2022
GBP'000 GBP'000 GBP'000
Disposal of Subsidiary (462) - 1,093
Fair value gain on financial
instrument held at FVTPL - - 546
Gain/(loss) on available
for sale financial instruments - - 26
Other gains - 20 333
(462) 20 1,998
-------------------------------- ---------- ------------- ------------
The Group incurred a loss on disposal of GBP462,000 from the
disposal of its Spanish subsidiary La Wash Group, recognised in
other losses in the income statement.
5. Taxation
Six months Six months to 12 months to
to 30 April 31 October
30 April 2021 2021
2022
GBP'000 GBP'000 GBP'000
Profit/(loss) before tax 19,946 12,007 28,555
Total taxation charge (3,514) (2,611) (6,703)
------------------------- ---------- ------------- ------------
Effective tax rate 17,6 % 21.7% 23.5 %
------------------------- ---------- ------------- ------------
The tax charge in the Group Income Statement is based on
management's best estimate of the full year effective tax rate
based on expected 12 Months profits to 31 October 2022.
The corporation tax rate for the period ended 30 April 2022 was
19%. The Finance Bill 2021 was substantively enacted on 24 May
2021, legislating that the UK Corporation Tax rate will increase
from 19% to 25% with effect from 1 April 2023.
The Group undertakes business in multiple tax jurisdictions.
6. Dividends
Dividends paid and proposed
30 April 2022 31 October 2021
------------------ ------------------
Pence per GBP'000 Pence per GBP'000
share share
-------- --------- ------- --------- -------
Interim 2.6 9,840 - -
Final - - - -
-------- --------- ------- --------- -------
No dividends were paid in the year ended 31 October 2021.
The Board proposed a final dividend of 2.89p per ordinary share
in respect of the year ended 31 October 2021, which was approved by
shareholders at the Annual General Meeting held on 29 April 2022
and paid on 13 May 2022.
7. Earnings per share
The earnings and weighted average number of shares used in the
calculation of earnings per share are set out in the table
below:
Six months Six months 12 months
to 30 April to 30 April to 31 October
-----------------------------------
2022 2021 2021
----------------------------------- ------------ ------------ --------------
Basic earnings per share 4.35 2.49p 5.78p
Diluted earnings per share 4.35 2.48p 5.77p
----------------------------------- ------------ ------------ --------------
Earnings available to shareholders
(GBP'000) 16,432 9,396 21,852
Weighted average number of shares
in issue in the period
- basic ('000) 378,012 378,011 378,012
- including dilutive share options
('000) 378,012 378,212 378,938
----------------------------------- ------------ ------------ --------------
8. Non-current assets - intangibles, property, plant and equipment and investment property
Intangible Property, Investment
Goodwill assets plant & property
equipment
GBP'000 GBP'000 GBP'000 GBP'000
Net book value at 1 November
2020 13,767 13,466 90,285 652
------------------------------ ----------- ----------- ----------- -----------
Exchange adjustment (228) 202 (4 981) (39)
Additions - photobooths
& vending machines - - 22 563 -
Additions - other assets - 2 529 4 866 -
Additions - right of use - - 9 741 -
Additions - new subsidiaries 4 685 7 644 2 481 -
Amortisation / Depreciation
/ Impairment (582) (4 837) (30 312) (16)
Transfers - (1 144) 1 144 -
Disposals at net book value - (1 000) (3 814) -
------------------------------ ----------- ----------- ----------- -----------
Net book value at 31 October
2021 17 642 16 860 91 973 597
------------------------------ ----------- ----------- ----------- -----------
Exchange adjustment (22) (76) (729) (4)
Additions - photobooths - - 11,120 -
& vending machines
Additions - other assets - 1,266 2,003 -
Additions - right of use - - 781 -
Additions - new subsidiaries 1,652 96 25 -
Transfers - - - -
Amortisation / Depreciation
/ Impairment - (4,030) (14,612) (8)
Disposals at net book value - (28) (2,224) -
------------------------------ ----------- ----------- ----------- -----------
Net book value at 30 April
2022 19,272 14,088 88,337 585
------------------------------ ----------- ----------- ----------- -----------
9. Net cash
30 April 30 April 31 October
2022 2021 2021
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per statement
of financial position 96,757 96,257 99,362
Non-current borrowings (34,673) (35,372) (44,323)
Current borrowings (18,930) (44,007) (20,120)
----------------------------------------- --------- --------- -----------
Net cash 43,155 16,878 34,919
----------------------------------------- --------- --------- -----------
At 30 April 2022, GBP984,000 (30 April 2021: GBP984,000; 31
October 2021: GBP984,000) of the total net cash comprised bank
deposit accounts that are subject to restrictions and are not
freely available for use by the Group.
Cash and cash equivalents per the cash flow comprise cash at
bank and in hand and short-term deposit accounts with an original
maturity of less than three months, less bank overdrafts.
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.
The table above, which is not currently required by IFRS,
reconcile the Group's net cash to the Group's statement of cash
flows. Management believes the presentation of the tables will be
of assistance to shareholders.
10. IFRS3 Business Combinations
The Group continues to expand with the recent acquisition of
100% of Vip Box, the French leader in the rental and sale of selfie
stations for private and professional events.
This acquisition supports the Group's strategic aims of product
diversification.
The transaction completed on the 31 March 2022 for a
consideration of EUR3,900,000 (GBP3,274,000).
The acquisition was funded from the Group's cash resources.
Deferred consideration
Of the total consideration, EUR600,000 (GBP504,000) is deferred
and contingent on future performance. The deferred payment will be
due 12 months from the acquisition date. The value will be
determined based on Vip Box's profit before tax over the 12 months
following the acquisition date.
Management expects Vip Box to meet the maximum profit before tax
target, so have accrued the maximum contingent consideration value
of EUR600,000 and included this amount in the total
consideration.
Acquired assets and liabilities
Due to the proximity of the transaction to the reporting date,
the purchase price allocation, including determination of the fair
value of intangible assets recognised on consolidation has not been
finalised.
Goodwill has been calculated using the provisional fair values
of the assets and liabilities acquired, with a value of
GBP1,652,000 recognised in the Group's Statement of Financial
Position.
Pending receipt of the final valuations of the assets acquired,
in accordance with IFRS3, the accounts will be adjusted
retrospectively within the measurement period of no more than one
year from the acquisition date.
Revenue and profit contribution
The acquired business contributed revenues of GBP142,000 and
profit before tax of GBP30,000 to the Group for the period from 31
March 2022 to 30 April 2022.
11. Changes to the composition of the Group
Disposal of La Wash Group
On 8 April 2022, the Group disposed of its Spanish B2B laundry
business La Wash Group. This was for consideration of GBP152,000.
The Group incurred a loss of GBP462,000 which has been recognised
in other losses in the income statement.
Acquisition of non-controlling interest in SCI du Lotissement
d'Echirolles
The Group owned 61% of SCI Lotissement d'Echirolles (SCI), with
the remaining 39% previously being held by a third party
non-controlling interest.
In April 2022, the Group acquired the remaining 39% from the
non-controlling interest increasing its ownership of SCI to 100%.
The consideration paid for the non-controlling interest was
EUR3,554,000 (GBP2,985,000).
In accordance with IAS27 this acquisition was accounted for as
an equity transaction. The Group's non-controlling interest in SCI
has been reduced to nil and the excess of consideration paid over
non-controlling interest fair value has been recognised as a
reduction in Group equity. Therefore, the total impact to equity
was the consideration paid of EUR3,554,000 (GBP2,985,000).
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE
HALF-YEARLY FINANCIAL REPORT
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- The Interim Management Report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements and a description of
the principal risks and uncertainties for the remaining six months
of the year and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period and any changes in the related party
transactions described in the last annual report that could do
so.
By order of the Board
John Lewis (Non-executive Chairman)
Serge Crasnianski (Chief Executive Officer and Deputy
Chairman)
18 July 2022
INDEPENT REVIEW REPORT
We have been engaged by Photo-Me International PLC ("the
Company") to review the financial information for the six months
ended 30(th) April 2022 which comprises the Group Condensed
Statement of Comprehensive Income, the Group Condensed Statement of
Financial Position, the Group Condensed Statement of Cash Flows and
the Group Condensed Statement of Changes in Equity and the related
explanatory notes. We have read the other information contained in
the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial
information.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
issued by the Auditing Practices Board and our Engagement Letter
dated 20(th) June 2022. Our work has been undertaken so that we
might state to the Company those matters we are required to state
to them in an independent review report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review
work, for this report, or for the conclusions we have formed.
Respective responsibilities of directors and auditor
The interim report, including the financial information
contained therein, is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the
interim report in accordance with International Accounting Standard
34, 'Interim Financial Reporting', in accordance with Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority which requires that the interim report must be
prepared and presented in a form consistent with that which will be
adopted in the company's annual accounts having regard to the
accounting standards applicable to such annual accounts.
Our responsibility is to express to the Company a conclusion on
the condensed set of financial information in the interim report
based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed financial information in
the interim report does not give a true and fair view of the
financial position of the Company as at 30(th) April 2022 and of
its financial performance and its cash flows for the six months
then ended, in accordance with International Accounting Standard
34, 'Interim Financial Reporting and Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
Signed:
Mazars LLP
Chartered Accountants
30 Old Bailey
London
EC4M 7AU
Date: 19 July 2022
Note:
a) The maintenance and integrity of the Photo-Me International
plc website is the responsibility of the directors; the work
carried out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the financial statements
since they were initially presented on the website.
b) Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
CAUTIONARY STATEMENT AND DISCLAIMERS
This Interim Financial Report is addressed to the shareholders
of Photo-Me International plc and has been prepared solely to
provide information to them. This report is intended to inform the
shareholders of the Group's performance during the six months to 30
April 2022. It has been prepared to provide additional information
to shareholders to enable them to access the Group's strategies,
performance and the potential for those strategies to succeed. It
should not be relied upon for any other purpose.
This Interim Financial Report contains certain forward-looking
statements which are subject to risk factors associated with, among
other things, the economic and business circumstances occurring
from time to time in the countries and markets in which the Group
operates. It is believed that the expectations reflected in this
report are reasonable but they may be affected by a wide range of
variables which could cause actual results to differ materially
from those currently expected. No assurances can be given that the
forward looking statements in this Interim Financial Report will be
realised. The forward-looking statements reflect the knowledge and
information available at the date of preparation.
DISTRIBUTION OF REPORT
This Interim Report is released to the London Stock Exchange. It
may be viewed and downloaded from the Company's Investor Relations
section on the website www.me-group.com.
Shareholders and others who require a copy of the report may
obtain a copy by contacting the Company Secretary at the Company's
registered office.
Photo-Me International plc
Unit 3B Blenheim Road Epsom
Surrey KT19 9AP
Tel: +44 (0)1372 453399
Fax: +44 (0)1372 459064
e-mail: ir@photo- me.co.uk
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END
IR RPMBTMTJBTLT
(END) Dow Jones Newswires
July 19, 2022 02:00 ET (06:00 GMT)
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