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Photo-Me to pile up laundry business around Europe

The company, which mainly operates photobooths, is looking at boosting activity in the laundry and food divisions

Photo-Me International PLC - Photo-Me to pile up laundry business

Photo-Me International PLC (LON:PHTM) said expanding the laundry business remains a “key” priority as it will account for an increasing proportion of total revenue in the medium term and help the group meet market expectations for the current year.

The company, which has been forced look outside its photobooths business after the government's decision to allow passport photos to be taken on smartphones, plans to boost laundry activity in new markets such as Germany, Austria and Switzerland via its 'Laverie by KIS Wash' chain and unattended Revolution machines.

READ: Photo-Me knocked by Brexit uncertainty and camera phones

Total laundry units deployed increased 9% in the half-year and laundry revenue was up 7% from Revolution laundry services, launderettes and business-to-business laundry services.

Another focus is on the recently established segment, KIS Food, which is expected to deliver £3.2mln pre-tax profit in the full year.

Photo-Me entered the fresh fruit and vegetable juice market after acquiring Sempa Sarl, which contributed £3.5mln of revenue and £1.8mln of profit before tax in the six months to 31 October.

Interim results from the group showed revenue up 3% at £123.9mln, while pre-tax profit rose 9% to £28.3mln.

“The board remains confident that the group will continue to perform in line with market expectations for the current financial year,” said chief executive Serge Crasnianski.

The growth was led by continental Europe through the acquisition of Sempa, the continued roll-out of Laundry and a better-than-expected photobooth performance in France, partly offset by challenges in UK photobooths. 

Analysts at house broker finnCap said in a note these trends are expected to continue.

Net cash was 22% lower at £25.2mln and interim dividend held flat at 3.7p.

Shares were up 2% to 88.6p on Tuesday morning.

Quick facts: Photo-Me International PLC

Price: 49 GBX

AIM:PHTM
Market: AIM
Market Cap: £185.23 m
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