TIDMPHTM
RNS Number : 8369E
Photo-Me International PLC
12 July 2021
12 July 2021
Photo-Me International plc
("Photo-Me" or "the Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 APRIL 2021
Good half-year performance
Photo-Me International plc (PHTM.L), the instant-service
equipment group, announces its results for the six months ended 30
April 2021 (the "Period").
Results summary
Reported
Six months Six months Change
ended ended
30 April 2021 30 April 2020
--------------- --------------- -------
Revenue GBP94.6m GBP91.5m 3.4%
--------------- --------------- -------
EBITDA (excluding associates)(1) GBP28.7m GBP16.7m N/A
--------------- --------------- -------
Reported profit before tax GBP12.0m GBP(24.2)m N/A
--------------- --------------- -------
Adjusted profit before tax(2) GBP12.9m GBP(0.1)m N/A
--------------- --------------- -------
Profit after tax GBP9.4m GBP(21.3)m N/A
--------------- --------------- -------
Cash generated from operations GBP22.4m GBP14.7m 52.4%
--------------- --------------- -------
Gross Cash GBP95.3m GBP65.5m 45.5%
--------------- --------------- -------
Net cash(3) GBP16.9m GBP7.9m 113.9%
--------------- --------------- -------
Earnings per share (diluted) 2.49p (5.64)p N/A
--------------- --------------- -------
Interim dividend per Ordinary nil nil -
share
--------------- --------------- -------
(1) EBITDA is Reported profit before tax, less total
depreciation and amortisation, less other net gain, Finance costs
and income. EBITDA for the six months ended 30 April 2020 has been
adjusted in order to have comparable data (COVID provision has been
added back).
(2) Adjusted profit before tax for the six months to 30 April
2021 is profit before tax adjusted to exclude the restructuring
costs, additional impairments and the profit on the sales of Inox
assets.
(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 3.4% to GBP94.6 million (2020: GBP91.5m),
resulting mostly from reduced restrictions on the movement of
people and customers compared with the comparative period
-- EBITDA increased to GBP28.7 million from GBP16.7m(1) million in the prior year period
-- Reported profit before tax increased to GBP12.0 million
-- Cash generation was up 52.4%
-- Net cash position of GBP16.9 million, an increase of 113.9%
from the same period in the prior year
Operational summary
-- A stronger than anticipated recovery of revenue for
Identification business (+3.4%), lost as a result of the COVID-19
pandemic, particularly in Japan, France and the UK
-- Laundry operations continued to perform well with total
revenue for laundry operations up 23.2% to GBP23.9 million
-- Expansion of Revolution laundry operation continued, with
revenue up 15.8% and the total number of Revolution units in
operation up 17.4%
-- Multi-country restructuring plans completed during April 2021
- progressing plans to remove additional unprofitable machines from
operation across China and the UK
-- Continued focus on new product innovation and diversification
of operations to meet ever-changing consumer needs
-- Launch of ME Group, new corporate brand strategy to reflect diversification of operations
Serge Crasnianski, CEO and Deputy Chairman, said:
"The Group has had a better initially expected start to the
current financial year, with a promising return to pre-COVID
business conditions. We have completed a multi-country
restructuring programme which has radically reorganised our
business areas and our country management. This includes a
restructure of operations in the UK, which is expected to return to
a cash positive position in the short-to-medium term.
"We are introducing new photo services and upgrading our
photobooths. ID photos are proving to be a sustainable market,
serviced through our established network and partnerships with site
owners, including in the UK.
"We continue to have a great success in the rollout of our
Revolution laundry machines in petrol forecourt locations, and our
first 100 self-service apple juice machines have been delivered to
the market alongside our 2,700 orange juice machines.
"In addition to the above, our new corporate brand name, ME
Group, is being rollout across the Group, which will reinvigorate
the Group's relationship with its B2B partners and consumers.
"Looking ahead, I am confident of a return to our fundamentals
more quickly than previously expected, unless the COVID situation
presents new difficulties."
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
Wendy Baker / Nick Moore photo-me@hudsonsandler.com
An audio webcast of the analyst and investor presentation will
be available to download later today at www.photo-me.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 18 countries and its
technological innovation is focused on four principal areas:
-- Identification: photobooths and integrated biometric identification solutions
-- Laundry: unattended laundry services, launderettes, B2B services
-- Kiosks: high-quality digital printing
-- Food: 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, the
self-service food equipment will become a key business area
alongside Identification, Laundry, and Kiosks, and will be 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
vast majority of units are owned, operated and maintained by
Photo-Me. Photo-Me 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.
CHAIRMAN'S STATEMENT
The Board is pleased to report that the Group delivered a good
first-half performance following a better start to the current
financial year than initially expected. This performance was driven
by some recovery in consumer activity, mainly in Continental Europe
and in Japan.
Laundry remains a key growth driver for the Group and a further
325 Revolution machines were installed in the Period, despite the
challenges presented by the pandemic. Identification performance
improved, particularly in Japan which benefited from strong trading
momentum in March and April 2021, due to an increase in the
adoption of the Japanese government's 'My Number' social security
and taxation photo identification card scheme, albeit activity in
May 2021 reverted to pre-March 2021 levels.
Furthermore, the Group is continuing its previously announced
restructuring programme to improve profitability through the
removal, and in some cases relocation, of unprofitable
machines.
To capture the opportunity to win contracts to install its
vending equipment from multi-country agreements, the Group has put
in place a successful key account policy focused on the Group's
engagement with international organisations for the installation of
photobooths.
Details of the Group's financial performance are set out in the
Business and Financial Review.
Business strategy update
The Group sells and services a wide range of instant-service
equipment, primarily aimed at the end consumer. It operates across
18 countries and is focused on four principal business areas:
Identification, Laundry, digital Kiosks, and Food.
The Group's key investment priorities are the continued
expansion of the Laundry business and the growth of its Food
business, through organic growth, new product development and
selected bolt-on acquisitions which meet the Group's
return-on-investment criteria. The Board continues to expect that
over time these two business areas will contribute an increasing
proportion of total Group revenue and profit.
New product innovation remains central to the Group's growth
strategy as it continues to diversify operations in response to
ever-changing consumer needs. The R&D team is working on new
projects to support future growth, with a focus on digital
transformation and innovation in Identification. Further details on
Innovation and Diversification initiatives are set out in the
Business and Financial Review.
Since the Period end, the Group has taken first commercial steps
to expand its operations into Finland. Furthermore, the Board is
considering opportunities to further extend its geographic
footprint through organic growth in Europe, Scandinavia and
Australasia.
New corporate brand strategy - "ME Group"
The breadth and reach of Photo-Me's operations have changed
hugely in recent years as the Board's strategy to evolve and
diversify the Group's operations, with innovation at its core, has
been successfully implemented. Best known for its photobooths and
printing kiosks, the Group has a growing presence in the laundry
market and aspirations to be a leader in the food vending equipment
market.
To strengthen the Group's brand strategy and reflect the shape
of the Group today, Photo-Me International PLC is in the process of
launching a new corporate brand "ME Group", reflecting the wide
range of easy to use and convenient vending products and solutions
offered by the Group. The "ME Group - Making Easy" branding will be
rolled out across all of the Group's countries of operation in the
coming months.
In addition, to reinvigorate the Group's marketing amongst its
customers and consumers, the essence of the ME Group brand will be
captured in each of the Group's principal business areas.
Identification will be known as Photo.ME, Kiosks will be known as
Print.ME, Laundry as Wash.ME and KIS Food as Feed.ME.
Some of the Group's best-known consumer brands will coexist with
the ME Group brand in the short-to-medium term, including
Revolution Laundry across all geographies, Photomaton(R) in France
and Photo-Me in the UK.
The new brand strategy is an exciting and important development
for the Group which will support its growth strategy and continued
diversification to meet the needs of customers and consumers today
and in the future.
Photo-Me International PLC will remain the Group's listed entity
name.
Dividends
The Board will continue to review the dividend policy and align
any future dividend payments to the performance of the business and
its investment strategy. Shareholders' distributions for the
financial year ended 31 October 2021 will be subject to FY2021
performance. There is no restriction of shareholder distributions
as long as the Group has enough cash to pay the dividends without
using PGE funds.
The Board
On 23 June 2021, the Group announced changes to the composition
of the Board with the appointment of four new members. Tania
Crasnianski was appointed as an Executive Director, and Camille
Claverie, René Proglio and Sigieri Diaz della Vittoria Pallavicini
were appointed as Non-executive Directors.
The Board has been working hard to refresh its membership for
some time as it continues to plan for succession for both Executive
and Non-executive Directors. The Board believes that the new
appointments bring a wealth of skillsets and experience as the
Group continues to implement its growth strategy.
The Board is delighted to welcome the aforementioned and looks
forward to working together to drive forward the Group's growth
strategy.
The previously announced 20% voluntary salary reduction for all
members of the Board from 1 July 2020, to preserve the Group's cash
position during government lockdowns, w ill cease on 1 August
2021.
Corporate responsibility
The Board recognises the Group's responsibilities to the
community and the environment and believes that health, safety, and
environmental issues are integral and important components of best
practice in business management.
To this end, the Group is working on the methodology and
framework ahead of launching its comprehensive corporate social
responsibility policy. This policy will support its growth strategy
by integrating social, environmental, and economic expectations
into the Group's strategy and operations. The aim is to strengthen
the link between internal teams and external stakeholders to best
meet the expectations of all stakeholders. The Group will provide a
further update when it announces its FY2021 results.
Looking ahead
The Group started the 2021 financial year strongly, driven by an
uptick in applications for the My Number card in Japan and
encouraging trading across France in the six months ended 30 April
2021, which resulted in better than expected performance across the
Group. Consequently, in April the Board revised its expectations
for the financial year ending 31 October 2021. Revenue was expected
to be between GBP190 million and GBP200 million (before exceptional
items), and profit before tax between GBP15 million and GBP19
million (before exceptional items).
Although economic uncertainty remains across many of the Group's
operating markets due to the COVID-19 pandemic, the positive
trading momentum during the first six months of the financial year
means that the Board now believes the Group will exceed its revised
expectations for the current financial year ending 31 October 2021.
Revenue is now expected to be approximately GBP200 million and
profit before tax (before impairment and exceptional items) is
expected to be in the range of GBP21 million to GBP24 million.
The Group is focused on investing in innovation and
diversification to drive its growth strategy. This, alongside
improving market conditions, is expected to continue to benefit the
Group in FY2022 and anticipates that profits in that year will be
broadly similar to FY2019 levels.
The Group has a strong cash position and the Board remains
confident in its long-term growth strategy, and its ability to
continue to adapt to and operate in the new consumer
environment.
CHIEF EXECUTIVE'S BUSINESS AND FINANCIAL REVIEW
Financial performance
Results
Reported revenue for the six months ended 30 April 2021 was
GBP94.6 million, an increase of 3.4% compared with the six months
ended 30 April 2020, mainly driven by (i) a continued good
performance from Laundry operations, with total revenue from
Laundry operations up 23.2% and revenue from Revolution units up
15.8%, and (ii) a good Identification business performance in
Continental Europe (France) and stronger than anticipated trading
momentum in Japan. Across all key financial metrics, the Group
delivered an improved performance when compared with the six months
ended 30 April 2020, which was suddenly and dramatically impacted
by the onset of the pandemic.
Reported EBITDA (excluding associates) was GBP28.7 million,
which delivered an EBITDA margin of 30.3% (30 April 2020: 18.0%).
This compared with EBITDA of GBP16.7 million for the six months
ended 30 April 2020 which was dramatically impacted by the onset of
the pandemic.
Profit after tax was GBP9.4 million, including a GBP1.3 million
provision for the write down of machines in China, and a GBP0.3
million one-off cost related to reorganisation of the UK business.
This compared with a reported loss of GBP21.3 million for the six
months ended 30 April 2020.
Notably, when compared with pre-pandemic trading, the Group
delivered approximately 87% of reported revenue, and approximately
93% of EBITDA reported in the six months ended 30 April 2019.
The Group remained cash flow positive, with improved cash
generation of GBP22.4 million reflecting some recovery in consumer
activity levels. This compared with cash flow generation of GBP14.7
million for the six months ended 30 April 2020.
Capital expenditure was GBP22.5 million, mainly related to
Laundry capex (GBP8.1 million) and Photo Plaza investment (GBP7.9
million). The remainder relates to photobooths, and other plant and
equipment.
The table below provides a reconciliation of reported profit
before tax to adjusted profit before tax and a breakdown of
exceptional items, provisions and impairment.
Six months Six months
ended ended
30 April 30 April
2021 2020
----------- -----------
Reported profit before tax GBP12.0m GBP(24.2)m
Discontinued operations - Loss of Max - GBP0.5m
Sight Holding investment
Exceptional items - restructuring costs GBP0.3m GBP1.1m
Exceptional items -impairments GBP1.3m GBP22.4m
Exceptional items - Sales of Inox assets GBP(0.7)m -
Adjusted profit before tax GBP12.9m GBP(0.1)m
Funding and liquidity
As at 30 April 2021, the Group had gross cash of GBP95.3
million, and a net cash balance of GBP16.9 million. The Group
continues to comply with its banking covenants. The Group is no
longer accessing government job support schemes, but received
GBP0.7 million during the Period.
The Board continues to believe it has sufficient liquidity to
continue to navigate the disruption caused by the pandemic.
Update on restructuring programmes
By the end of April 2021, the Group had substantially completed
its previously announced restructuring programme to remove
unprofitable machines, primarily photobooths and children's rides.
These programmes were implemented to address the significant loss
in Identification revenue and to better align operations with the
anticipated lower level of consumer activity in the wake of the
pandemic.
In total approximately 5,000 machines have been removed from the
vending estate. Of this, around 3,800 machines were removed from
the UK (mainly children's rides and photobooths), 444 from China
and 1,000 across Continental Europe (primarily France, the
Netherlands and Spain). Some of these machines will be relocated.
The Group has continued to expand by installing 1,500 machines in
Europe and 1,700 machines in Japan (including Plaza Create
machines). As a result, the net movement is a decrease of 442
machines. In South Korea, the Group impaired 200 units.
Transportation costs for photobooth relocation have increased and
in some instances the Group has paused removals subject to these
costs and the recent revenue performance of the machines.
Whilst the Board will continue to take further action if
required, the restructuring programme is now substantially
complete, except for the UK, where an additional restructuring plan
has been smoothly implemented at a cost of GBP0.3 million, and in
China (GBP1.3 million of additional machine impairment).
Overview of principal business areas
Below is an overview of the Group's four principal business
areas: Identification, Laundry, digital Kiosks and Food. In
addition, the Group operates other vending equipment, such as
children's rides and photocopiers. KIS Food is focused on vending
equipment for the food service market.
Identification
Photobooths and integrated biometric identification
solutions
Six months Six months Change
ended ended
30 April 30 April
2021 2020
----------- ----------- ---------
Number of units in operation 28,095 28,537 (1.5)%
% of total Group vending estate
(units) 62.9% 60.7% 3.6%
Total revenue GBP52.5m GBP51.9m 1.2%
Capex GBP3.3m GBP3.3m 0.3%
Identification revenue grew by 1.2% to GBP52.5 million. The
recovery in photobooth revenue was faster than expected during the
second quarter (mainly in France), and was driven by strong
activity levels in Japan due to 'My Number' applications.
In the UK, the trading environment remained extremely
challenging due to the impact of the pandemic on consumer activity
alongside the Government's policy to accept photos taken at home
for official documents and passport identification. In China, the
trading environment also remained difficult and a recovery in
activity is not expected in the short-to-medium term.
As previously announced, action was taken across the
Identification vending estate to remove unprofitable machines and
mitigate lower activity levels.
As a result, t he total number of photobooths in operation at 30
April 2021 reduced by 1.5% to 28,095 units. Identification
accounted for 62.9% of the Group's total vending units.
Capex was GBP3.3 million, an increase of 0.3% mainly due to the
refurbishing of removed machines on new sites instead of purchasing
new machines. In addition, new contactless card payment systems are
being installed initially in photobooths in the UK and France. This
system will make payment easier for customers and will give the
Group greater flexibility over pricing. The plan is to roll out
this payment system across the photobooth estate over time.
The Group remains confident in the longer-term opportunity in
the photobooth market and the Group is investing in development of
a new, more digitalised photobooth (further details in the
Innovation and Diversification section below).
Laundry
Unattended Revolution laundry services, launderettes,
business-to-business laundry services
Six months Six months Change
ended ended
30 April 30 April
2021 2020
----------- ----------- ---------
Total Laundry units deployed (owned,
sold, acquisitions) 5,298 5,471 (3.2)%
Total revenue from Laundry operations GBP23.9m GBP19.4m 23.2%
Revolution (excludes Launderettes
and B2B):
Number of Revolution units in operation 3,762 3,205 17.4%
% of total Group vending estate (number
of units) 8.4% 6.6% 27.3%
Total revenue from Revolution GBP18.4m GBP15.9 15.8%
Revolution capex GBP8.1m GBP4.9 64.7%
Total revenue from Laundry operations grew by 23.2% to GBP23.9
million, driven by growth in its Revolution laundry business.
The total number of Laundry units deployed (owned, sold and
acquired), reduced by 3.2% due to the Board's decision to withdraw
from UK B2B operations following the collapse in activity during
the pandemic. The Group continues to operate B2B Laundry services
in Spain under a franchise model. The Board continues to review its
Launderette operations and remove or sell unprofitable
machines.
Growth of Revolution operations
Revolution laundry operations remain a key driver of growth for
the Group and a further 325 units were deployed during the Period
(an average of 55 units per month). Revolution machines now account
for 8.4% of the total Group vending estate by number of units.
Total revenue from Revolution operations grew by 15.8% to
GBP18.4 million, with revenue growth reported in all three
geographic regions of operation. This growth was supported by the
easing of lockdowns, and the increase in units in operation.
However, the average revenue per machine declined slightly because
of the pandemic and because of the number of new machines
installed, which initially generate lower revenue than established
machines.
Furthermore, the Group won new contracts with petrol forecourt
operators and retailers, such as EG Group and Circle K, for the
rollout of Revolution units in accessible and convenient locations
for consumers in the UK, Ireland, France, Switzerland, and the
Netherlands.
Revolution capex increased by 64.7% to GBP8.1 million,
reflecting the Group's focus on expansion of Revolution operations
primarily in the UK, Ireland, Portugal and France. The Group plans
to return to an average of 70 Revolution installations per month as
lockdown restrictions continue to be eased.
The Group has continued to actively work to reduce its impact on
the environment. Photovoltaic solar panels have now been installed
on 100 Revolution units in France, with plans to rollout this
initiative to other geographies, which will equate to a reduction
in energy use by approximately 20%. The Group is also working on
the introduction of a new fabric softener with eco-label
standards.
Kiosks
High-quality digital printing services
Six months Six months Change
ended ended
30 April 30 April
2021 2020
----------- ----------- ---------
Number of units in operation 5,211 5,497 (5.2)%
% of total Group vending estate
(units) 11.7% 11.7% -
Revenue GBP6.0m GBP5.5m 9.1%
Capex GBP0.2m GBP0.8m (75.0)%
Revenue was GBP6.0 million, an increase of 9.1%, reflecting an
improving trend in consumer activity levels during the Period as
lockdown restrictions were eased in France, the UK and
Switzerland.
The total number of Kiosks in operation at 30 April 2021 was
5,211, a reduction of 5.2% due to the removal of unprofitable
machines. Kiosks accounted for 11.7% of the total number of vending
units in operation.
Capex was 75% lower in the Period at GBP0.2 million in line with
the Group's ongoing strategy to limit kiosk investment to premium
sites, and focus capex on the expansion of Laundry operations.
Other vending equipment
Outside of the Group's four principal business areas, it
operates other vending units, which includes children's rides,
photocopiers and other miscellaneous machines. These machines are
primarily situated alongside the Group's 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.
Consumer demand for these machines has been significantly
impacted by the pandemic and social distancing rules. Consequently,
unprofitable machines have been removed as part of the
restructuring programme.
At 30 April 2021, the Group operated 7,509 other vending units.
These machines account for 16.8% of the Group's total vending
estate by number of units and 5.7% of the total Group revenue.
KIS Food
At 30 April 2021, there were 2,700 fresh fruit juice machines in
activity. The revenue in the Period was GBP3.2 million,
contributing 3.4% to total Group revenue. The widespread closure of
restaurants and hotels due to the pandemic has impacted fresh fruit
juice machine sales.
The professional apple and pineapple machines developed by the
R&D team for commercial use are ready for deployment to target
end markets, such as the hospitality sector. The pace of rollout
has been delayed due to the pandemic, with approximately 100 apple
juice machines installed to date and further rollout planned for
the current financial year. In addition, a prototype of a new grape
juice machine is being tested, and the Group has developed a 'juice
wall concept' which offers a variety of self-service fresh juice
options, two of which have been deployed to date. A further update
on these and other expansion opportunities and initiatives will be
provided in due course.
The Group's aim is to become the food vending equipment market
leader in France by 2023, and it plans to deploy these machines in
all the countries where the Group operates.
Post balance sheet events
Acquisition of pizza vending machine manufacturer
Following the Period end, the Group acquired Resto'Clock, a
French manufacturer of pizza vending machines (top 3 vending
machine player) for a net cash consideration of GBP3.1 million.
These vending machines offer consumers pizzas 24/7 and are ready in
four minutes. The Group will integrate the acquisition into KIS
Food and will sell or lease machines to customers and offer a
maintenance contract. Philippe Starck, the well-known French
designer, will design the pizza machines which are aimed at the B2B
hospitality market (restaurants and takeaway). The Group plans to
scale up production from 40 machines per year to c100 machines per
month by the end of 2023, with the aim of becoming a leader in this
market.
The Board has identified pizza vending as a growth opportunity
and believes it is well placed to establish a presence in the
market, supported by its strong site owner relationships and
network of field engineers.
Innovation and Diversification
Development of indoor Revolution laundry machine
The Group's in-house R&D team in France is developing an
indoor format of the Revolution machine for the B2B market for
customers including supermarkets, petrol stations, universities,
and hospitality businesses. The Group will rent machines, which
will be approximately one square metre in size, to customers and
will have a maintenance contract. The customer will manage the unit
day-to-day.
Next generation photobooth
The Group is working on its next generation photobooth, which is
being designed by French designer Philippe Starck, to further
enhance customer experience. In addition, the R&D team is
developing new 'fun' features such as filters, vintage style, and
portrait editing to diversify the Group's product offer via its
photobooth estate and attract younger consumers.
The Group has also developed an "anti-spoofing" solution for ID
photos to avoid risk of fraud, an area of focus for governments.
This technology is unique in the world. By using five different
shots, taken with five different cameras, the system analyses the
shadows and detects if there is an attempt of fraud (a portrait is
placed in front of the camera). Other initiatives include
biometrics, verification of identity documents and
fingerprints.
Digitalisation of instant vending services
Looking to the future, in a world where technology continues to
play an increasing role in our day-to-day lives, the Group is at
the early stages of developing a 5G cloud architecture for its
vending machine estate, which will bring together its full product
offer onto one platform driven by its website, and will enable
digital services such as applications, mobile-to-print and cloud
storage. In addition, there will be a loyalty programme which is
expected to increase the use of the Group's vending equipment. The
Group aims to launch these services in the calendar year 2022.
REVIEW OF PERFORMANCE BY GEOGRAPHY
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.
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.
Revenue by geographic region
Six months Six months ended Change
ended 30 April 2020
30 April 2021
Continental Europe GBP58.7m GBP52.5m 11.9%
UK & Republic of Ireland GBP13.3m GBP19.0m (29.9)%
Asia GBP22.5m GBP19.9m 13.1%
---------------- ------------------ --------
Total GBP94.6m GBP91.5m 3.4%
---------------- ------------------ --------
Operating profit by geographic region
Six months Six months ended Change
ended 30 April 2020
30 April 2021
Continental Europe GBP10.1m GBP(9.9)m 201.7%
UK & Republic of Ireland GBP2.0m GBP(11.0)m 118.4%
Asia GBP2.7m GBP1.1m 143.8%
---------------- ------------------ -------
Corporate costs GBP(1.3)m GBP(2.8)m 51.9%
---------------- ------------------ -------
Total GBP13.4m GBP(22.6)m 159.4%
---------------- ------------------ -------
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
FY2021 vs November 2019 to January 2020, Q2 FY2021 vs February to
April 2020 and H1 FY2021 vs November 2019 to April 2020.
Nov 2020 Feb 2021 Nov 2020 to Apr
to Jan 2021 to Apr 2021 2021
-------------------- ------------ ------------ ---------------
CONTINENTAL EUROPE
Identification -6.6% 36.1% 13.7%
Kiosks -3.8% 58.6% 16.1%
Laundries 1.0% 29.4% 12.9%
Other Vending -20.2% 7.7% -10.4%
-------------------- ------------ ------------ ---------------
Total -4.7% +35.2% +12.8%
-------------------- ------------ ------------ ---------------
UK & REPUBLIC OF
Ireland
Identification -50.1% -32.0% -41.4%
Kiosks -44.3% 3.2% -28.6%
Laundries 15.4% 20.9% 17.8%
Other Vending -78.3% -77.5% -78.0%
-------------------- ------------ ------------ ---------------
Total -34.4% -21.7% -28.7%
-------------------- ------------ ------------ ---------------
ASIA
Identification -15.4% 41.4% 13.8%
Kiosks -15.1% -1.1% -8.4%
Laundries 39.6% 50.1% 44.2%
Other Vending -57.3% 238.6% -15.5%
-------------------- ------------ ------------ ---------------
Total -17.8% 43.3% 12.7%
-------------------- ------------ ------------ ---------------
TOTAL
Identification -16.9% 27.3% 4.8%
Kiosks -7.9% 51.9% 11.3%
Laundries 5.0% 27.1% 14.4%
Other Vending -52.3% -24.1% -42.6%
-------------------- ------------ ------------ ---------------
Total -13.7% 26.2% 4.5%
-------------------- ------------ ------------ ---------------
Vending units in operation
At 30 April 2021 At 31 April Change
2020
No. of % of No. of % of
units total units total
Continental Europe 24,913 55.8% 25,597 54.4% (2.7)%
UK & Republic of Ireland 8,356 18.7% 11,198 23.8% (25.4)%
Asia 11,371 25.5% 10,221 21.8% 11.3%
--------- -------- ------- ------- --------
Total 44,640 100.0% 47,016 100.0% (5.1)%
--------- -------- ------- ------- --------
In line with the Group's strategy to remove unprofitable
machines from its estate, the total number of vending units in
operation reduced by 5.1% to 44,640 vending units (at 30 April
2020: 47,016).
The UK saw the most substantial reduction, due to the removal of
approximately 3,000 unprofitable machines (mainly children's rides
and photobooths) as part of the restructuring programme. In Asia,
the increase is due to an acquisition in Japan which added 1,500
units to operations in the region.
Continental Europe
As at 30 April 2021, there were 24,913 units in operation in the
region, which represented 55.8% 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.
Revenue was GBP58.7 million, an increase of 11.9%. This
performance was due to an improving revenue trend compared to the
six months ended 30 April 2020, with operating revenue for
Identification up 13.7%, Laundry up 12.9% and Kiosks up 16.1%. The
increase is more significant in France and Germany. However, other
vending revenue declined by 10.4%. The region contributed 62.1% of
total Group revenue.
Excluding GBP12.5 million of impairment and provision in the
prior year period, operating profit increased by 288.0% to GBP10.1
million reflecting a better performance in revenue and the benefit
of rent renegotiation.
UK & Republic of Ireland
Revenue was GBP13.3 million, down 29.9%. The performance of this
region continued to be impacted by two factors. Firstly, the
identification market for official documents remains extremely
challenging due to the UK government's acceptance of home-taken
photographs. Secondly, the pandemic has had a dramatic impact on
activity levels for all products. Operating revenue from
Identification was down 41.4%, Kiosks was down 28.6% and other
vending equipment was down 78.0% compared with the six months ended
30 April 2020. The Board has taken action to better align its
estate to consumer demand through the restructuring programme
implemented.
In contrast, Laundry operations performed strongly, up 17.8%
when compared with the six months ended 30 April 2020. A further
162 Revolution units were installed in the region in the
Period.
There was an operating profit of GBP2.0 million. The
reorganisation in the UK, including the removal of the unprofitable
machines, the site rent renegotiations, and the labour costs
savings are the main factors of this profitability. Excluding a
GBP0.3 million provision for restructuring operations in the UK,
operating profit was GBP2.3 million compared with a loss of GBP0.8m
last year before GBP10.2 million of provision and impairment. This
proves the efficiency of the reorganisation in the UK and the
country is expected to return to a cash positive position in the
short-to-medium term.
At 30 April 2021, 8,356 units were in operation, a reduction of
25.4%, and 18.7% of the Group's vending estate was located in the
UK & Republic of Ireland.
Asia
Revenue in the region increased by 13.1% to GBP22.5 million.
This performance was driven by strong trading momentum in the
Group's Identification business in Japan owing to the My Number
card, the Japanese government's social security and taxation photo
identification card scheme. The Group's photobooths in Japan are
equipped to scan the unique "My Number card" QR code that every
Japanese citizen has received, and match the ID photo to the card
application. The scheme (launched in 2015) is not mandatory,
nevertheless a government-backed incentive scheme to promote
citizen applications was introduced in September 2020 and is due to
run until September 2021, and this scheme has resulted in a
significant increase in citizen applications during the six-month
period.
On 1 February 2021, the Group acquired Photo Plaza and
integrated the business into its existing operations in Japan
during Q2. This acquisition added a further 1,500 photobooth units
to the Group's operations in Asia, and consequently an additional
GBP1.4 million of revenue in the last two months of the Period.
In China, trading has continued to be challenging primarily due
to the ongoing impact of the COVID-19 pandemic, and the Group does
not expect this to change in the short-to-medium term.
Consequently, 444 photobooths have been removed from the Group's
Chinese operations in the Period. This resulted in an impairment
charge of GBP1.3 million related to machines.
Operating profit after the impairment charge was GBP2.7 million
and GBP4.0 million before the impairment charge, compared to GBP2.1
million before impairment charge last year.
At 30 April 2021, 11,371 units were in operation, an increase of
11.3%, which represented 25.5% of the Group's total units in
operation which were situated in Asia.
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.
Nature of the risk Description and impact Mitigation
--------------------------- ----------------------------- --------------------------------------------------------
Economic
--------------------------------------------------------------------------------------------------------------------
COVID-19 The COVID-19 pandemic The Group has exercised
has and may continue a number of measures
to cause major disruption to protect the business
to worldwide markets and preserve cash during
and supply chains, the COVID-19 crisis,
including those that including but not limited
Photo-Me operates to:
within. Widespread Focusing on the health
governmental lockdown and safety of employees,
measures, such as other stakeholders and
travel bans and restrictions the public at large,
on the movement of stringent measures have
people, have significantly been implemented across
impacted the Group's the Group's businesses
business areas, particularly in line with guidance
Identification and of governments, the
children's rides due World Health Organization
to significantly lower and other relevant authorities
consumer demand for across the territories
its products and services. in which the Group operates.
In addition, lockdown Measures taken include
has restricted the providing employees
ability of the Group's with face shields, surgical
field engineers to masks, gloves, hand
service and replenish sanitiser and a disinfectant
machines. to safely clean the
Group's equipment.
Reducing capital and
other expenditure including
loan repayment deferrals,
obtaining additional
credit facilities and
government job retention
schemes. The Group has
also adopted use of
the NHS Test and Trace
app across the entire
business.
The Group continues
to monitor the COVID-19
situation closely and
continually reviews
operational practices,
updating its practices
in line with government
guidance and other relevant
guidance.
Global economic Economic growth has The Group focuses on
conditions a major influence maintaining the characteristics
on consumer spending. and affordability of
A sustained period its needs-driven products.
of economic recession The Group can and has
could lead to a decrease exercised the temporary
in consumer expenditure non-payment of dividends
in discretionary areas. to further mitigate
reduced consumer spend.
Volatility of foreign The majority of the The Group hedges its
exchange rates Group's revenue and exposure to currency
profit is generated fluctuations on transactions,
outside the UK, and as relevant. However,
the Group results by its nature, in the
could be adversely Board's opinion, it
impacted by an increase is very difficult to
in the value of sterling hedge against currency
relative to those fluctuations arising
currencies. from translation in
consolidation in a cost-effective
manner.
------------------------- ----------------------------- --------------------------------------------------------
Regulations
------------------------------------------------------------------------------------------------------------------
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
image capture, for security standards,
biometric passport and securely linking
and other applications, our booths to the administration
or widen the acceptance repositories. Solutions
of self-made or home-made are in place in France,
photographs for official Ireland, Germany, Switzerland
document applications, and the UK; discussions
the Group's revenues in Belgium and the Netherlands).
and profits could Furthermore, the Group
be affected. also ensures that its
ID products remain affordable
and of a high quality.
Brexit The UK left the EU The Board is continually
on 31 January 2020. reviewing the potential
This will lead to impact on the Group's
changes in UK regulations operations of the UK's
as modifications to leaving the EU.
numerous arrangements
between the UK and Any potential developments,
other members of the including new information
EU and EEA, affecting and policy indications
trade and customs from the UK Government
conditions, taxation, and the EU, will be
movements of resources, scrutinized with a view
among other things. 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
--------------------------------------------------------------------------------------------------------------------
Identification of The failure to identify Management teams constantly
new business new business areas review demand in existing
opportunities may impact the ability markets and potential
of the Group to grow new opportunities. The
in the long-term. Group continues to invest
in research in new products
and technologies.
Inability to deliver The realisation of The Group regularly monitors
anticipated benefits long-term anticipated the performance of its
from the launch benefits depends mainly entire estate of machines.
of new products on the continued growth New technology-enabled
of the laundry business secure
and the successful
development of integrated ID solutions are heavily
secure ID solutions. trialed before launch
and the performance of
operating machines is
continually monitored.
------------------------- ----------------------------- ----------------------------------------------------------
Market
------------------------------------------------------------------------------------------------------------------
Commercial The Group has The Group's major key
relationships well-established, relationships are supported
long-term relationships by medium-term contracts.
with a number of We actively manage our
site-owners. site-owner relationships
The deterioration at all levels to ensure
in the relationship a high quality of service.
with, or ultimately
the loss of, a key
account would have
an adverse, albeit
contained, impact
on the Group's results,
bearing in mind that The Group continues
the Group's turnover to monitor the situation
is spread over a large in both the French and
client base and none the UK markets.
of the accounts represent
more than 2% of Group
turnover.
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
------------------------------------------------------------------------------------------------------------------
Reliance on foreign The Group sources Extensive research
manufacturers most of its products is conducted into quality
from outside the UK. and ethics before the
Consequently, the Group procures products
Group is subject to from any new country
risks associated with or supplier. The Group
international trade. 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 to hold a strategic
for photobooths from stock of paper, allowing
one single supplier. for 6 -10 months' worth
The failure of this of paper consumption,
supplier could have to allow enough time
a significant adverse to put in place alternative
impact on paper procurement. solutions.
Reputation The Group's brands The protection of the
are key assets of Group's brands in its
the business. Failure core markets is sustained
to protect the Group's by products with certain
reputation and brands unique features. The
could lead to a loss appearance of machines
of trust and confidence. is subject to high
This could result maintenance standards.
in a decline in our Furthermore, the reputational
customer base. risk is diluted as
the Group also operates
under a range of brands.
Product and service The Board recognises The Group continues
quality that the quality and to invest in its existing
safety of both its estate, to ensure that
products and services it remains contemporary,
is of critical importance and in constant product
and that any major innovation to meet
failure will affect customer needs. The
consumer confidence. Group also has a programme
in place to regularly
train its technicians.
Technological
---------------------------------------------------------------------------------------
Failure to keep The Group operates The Group mitigates
up with advances in fields where upgrades this risk by continually
in technology to new technologies focusing on R&D.
are mission-critical.
Cyber risk: Third The Group operates The Group performs
party attack on an increasing number an ongoing assessment
secure ID data transfer of photobooths capturing of the risks and ensures
feeds ID data and transferring that the infrastructure
these data it directly meets the security
to government databases. requirements.
Group Condensed Statement of Comprehensive Income
for the six months ended 30 April 2021
Unaudited Unaudited Audited
Six months Six months 18 months
to to to
30 April 30 April 31 October
2021 2020 2020
Notes GBP '000 GBP '000 GBP '000
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Revenue 3 94,581 91,526 310,245
Cost of Sales (69,019) (80,178) (255,258)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Gross Profit 25,562 11,348 54,987
Other Operating
Income 156 185 910
Administrative
Expenses (12,289) (34,077) (52,580)
Share of Post-tax
losses from
associates - (37) -
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Operating
Profit/(loss) 3 13,429 (22,581) 3,317
Other net
gains/(losses) 3 20 (644) (283)
Finance revenue - 51
Finance cost (1,442) (979) (2,593)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Profit/(loss)
before tax 3 12,007 (24,204) 492
Total Tax
(charge)/credit 4 (2,611) 2,842 (2,844)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Profit/(loss) for
the period 9,396 (21,362) (2,352)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Other
Comprehensive
Income
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Items that are or
may subsequently
be classified to
Profit and Loss:
Exchange
Differences
Arising
on Translation of
Foreign
Operations (1,402) 2,183 3,948
Taxation on
exchange
differences (7) (3) (3)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Total Items that
are or may
subsequently
be classified to
profit and loss (1,409) 2,180 3,945
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Items that will
not be classified
to profit and
loss:
Remeasurement
gains in defined
benefit
obligations and
other
post-employment
benefit
obligations - - 340
Deferred tax on
remeasurement
gains - - (65)
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Total Items that
will not be
classified to
Profit and Loss - - 275
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Other
comprehensive
(expense)/income
for the period
net of tax (1,409) 2,180 4,220
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Total
Comprehensive
income/(expense)
for the period 7,987 (19,182) 1,869
------------------- ------ ------------------------------- ------------------------------- ------------------------------------
Profit for the
Year Attributable
to:
Owners of the
Parent 9,396 (21,362) (2,305)
Non-controlling
interests - - (47)
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
9,396 (21,362) (2,352)
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
Total
comprehensive
income
attributable to:
Owners of the
Parent 8,044 (19,200) 1,888
Non-controlling
interests (57) 18 (19)
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
7,987 (19,187) 1,869
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
Earnings per Share
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
Basic Earnings per
Share 6 2.49p (5.64)p (0.62)p
Diluted Earnings
per Share 6 2.48p (5.64)p (0.62)p
------------------- ---------------- --------------------- ------------------------------- ------------------------------------
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 2021
Unaudited Unaudited Audited
Six months Six months 18 months
to to to
30 April 30 April 31 October
2021 2020 2020
Notes GBP'000 GBP'000 GBP'000
-------------------------------- ------ ------------ ------------ ------------
Assets
Goodwill 7 13,675 13,222 13,767
Other intangible assets 7 17.212 36,642 18,972
Property, plant & equipment 7 93,776 88,262 90,285
Investment property 7 622 638 652
Investment in - associates 56 417 57
Financial instruments held
at FVTPL 984 984 984
Financial assets held at
amortised cost 957 913 960
Deferred tax assets - 92 -
Trade and other receivables 1,742 1,887 1,799
-------------------------------- ------ ------------ ------------ ------------
Non-current assets 129,025 143,057 27,477
Inventories 18,022 22,481 16,611
Trade and other receivables 20,419 26,232 16,740
Current tax 55 2,574 217
Cash and cash equivalents 8 95,273 65,509 106,193
-------------------------------- ------ ------------ ------------ ------------
Current assets 133,769 116,796 139,760
-------------------------------- ------ ------------ ------------ ------------
Total assets 262,794 259,853 267,237
-------------------------------- ------ ------------ ------------ ------------
Equity
Share capital 1,889 1,890 1,889
Share premium 10,599 10,599 10,599
Translation and other reserves 14,962 13,381 15,245
Retained earnings 92,775 88,329 84,448
-------------------------------- ------ ------------ ------------ ------------
Equity attributable to owners
of the Parent 120,225 114,199 112,181
Non-controlling interests 1,632 1,633 1,689
-------------------------------- ------ ------------ ------------ ------------
Total Shareholders' funds 121,857 115,832 113,870
-------------------------------- ------ ------------ ------------ ------------
Liabilities
Financial liabilities 8 41,653 50,084 40,937
Post-employment benefit
obligations 5,510 5,880 5,973
Deferred tax liabilities 6,737 3,827 6,058
Non-current liabilities 53,899 59,791 52,968
-------------------------------- ------ ------------ ------------ ------------
Financial liabilities 8 46,542 24,124 54,516
Provisions 411 3,847 1,262
Current tax 1,506 8,861 4,909
Trade and other payables 38,540 47,398 39,712
-------------------------------- ------ ------------ ------------ ------------
Current liabilities 87,038 84,230 100,399
-------------------------------- ------ ------------ ------------ ------------
Total equity and liabilities 262,794 259,853 267,237
-------------------------------- ------ ------------ ------------ ------------
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 2021
Unaudited Unaudited Audited
Six months Six months 18 months
to to to
30 April 30 April 31 October
2021 2020 2020
Notes GBP000 GBP000 GBP000
-------------------------------------- ------ ------------ ------------ ------------
Cash flow from operating activities
Profit before tax 12,007 (24,204) 492
Finance cost 1,442 933 2,592
Finance revenue - 66 (51)
Other gains (20) 624 283
-------------------------------------- ------ ------------ ------------ ------------
Operating profit/(loss) 13,429 (22,581) 3,317
Share of post-tax loss from - 37 -
associates
Amortisation of intangible assets 1,837 1,779 18,939
Depreciation of property, plant
and equipment 11,760 15,447 64,610
Provision and impairment 1,616 23,101 (112)
Profit on sale of property,
plant and equipment 767 436 -
Exchange differences (156) 829 (2,597)
Other items (604) 414 43
Changes in working capital:
Inventories (1,411) 899 5,728
Trade and other receivables (3,679) 729 4,177
Trade and other payables (1,172) (6,426) (1,170)
Cash generated from operations 22,387 14,664 92,935
Interest paid (365) (284) (2,594)
Taxation paid (6,015) (1,402) (4,688)
-------------------------------------- ------ ------------ ------------ ------------
Net cash generated from operating
activities 16,007 12,978 85,653
-------------------------------------- ------ ------------ ------------ ------------
Cash flows from investing activities -
Acquisition of subsidiaries
net of cash acquired (6,575) 567 (786)
Proceeds from disposal of associate - 357
Investment in intangible assets (691) (806) (2,326)
Proceeds from sale of intangible
assets - (12) 50
Purchase of property, plant
and equipment (15,993) (11,623) (44,782)
Proceeds from sale of property,
plant and equipment 1,235 605 1,474
Variation of FVTPL asset - (455) -
Interest received 106 12 259
Dividends received from associates - (291) (184)
-------------------------------------- ------ ------------ ------------ ------------
Net cash generated from investing
activities (21,918) (12,003) (45,938)
-------------------------------------- ------ ------------ ------------ ------------
Cash outflows from financing
activities
Issue of Ordinary shares to
equity shareholders - 12 11
Repayment of capital element
of finance leases (181) (102) (286)
Repayment of borrowings (11,137) (5,539) (17,097)
Increase in borrowings 6,310 (14,136)
Decrease in assets held at amortised
cost - - 30,964
Dividends paid to owners of
the Parent - (17,879) (31,894)
Net cash utilised in financing
activities (5,008) (37,664) (18,302)
-------------------------------------- ------ ------------ ------------ ------------
Net Decrease in cash and cash
equivalents (10,920) (20,371) 21,585
Cash and cash equivalents at
beginning of year 106,193 - 84,591
Exchange loss on cash and cash
equivalents - 1,086 17
-------------------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents at
end of year 8 95,273 (19,285) 106,193
-------------------------------------- ------ ------------ ------------ ------------
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 2021
Attributable
to owners
Share Share Other Translation Retained of the Non-controlling
capital premium reserves reserve earnings Parent interests Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- -------- --------- ------------ --------- ------------- ---------------- --------------
At 1 November 2019 1,888 10,588 1,781 10,785 107,785 132,796 1,618 134,414
---------------------- -------- -------- --------- ------------ --------- ------------- ---------------- --------------
Loss for year - - - - (21,362) (21,362) - (21,362)
---------------------- -------- -------- --------- ------------ --------- ------------- ---------------- --------------
Other comprehensive
(expense)/income
Exchange
differences - - - 2,183 - 2,183 - 2,183
Tax on exchange - - - (3) - (3) - (3)
Total other
comprehensive/income - - - 2,180 - 2,180 - 2,180
Total comprehensive
(expense)/income - - - 2,180 (21,362) (19,182) - (19,182)1,868
---------------------- -------- -------- --------- ------------ --------- ------------- ---------------- --------------
Shares options
exercised
in the period - 11 (1,781) - 1,962 193 - 193
Share options - - - - 172 172 - 172
Dividends - - - - (56) (56) - (56)
Disposal of minority - - - - - - (134) (134)
Total transactions
with the Parent 1 11 (1,310) (23) 1,906 585 15 600
---------------------- -------- -------- --------- ------------ --------- ------------- ---------------- --------------
At 30 April 2020 1,889 10,599 471 12,910 88,379 114,199 1,633 115,832
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 April 2021 (continued)
Attributable
to owners
Share Share Other Translation Retained of the Non-controlling
capital premium reserves reserve earnings Parent interests Total
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
------------------ --------- --------- ---------- ------------- ---------- -------------- ----------------- ---------
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 2021 ("the Interim Report") were approved and authorised
for issue by the Board of Directors on 8 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 18 months ended 31 October 2020 and that are
expected to be applied in its consolidated financial statements for
the year ended 31 October 2021. The condensed consolidated interim
financial statements comprise the unaudited financial information
for the six months ended 30 April 2021 and period ended 31 October
2020. 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 2020. 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 2020 are available at www.photo-me.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 2020 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 18 months period ended 31 October 2020.
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 2021 and
future reporting periods. The most significant standards and
interpretations were listed in the Group's 2020 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 (as COVID-19) 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 2020.
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.
The directors consider it necessary to present certain large and
unusual items (Specific items) separately in the income statement
in order to show the long-term performance trend of the Group more
clearly. The presentation of Specific items, as described above is
also a non-GAAP measure.
For those years where Specific items are shown in the Group
statement of Comprehensive Income an alternative earnings per share
is shown in the earnings per share note. Alternative earnings per
share and alternative diluted earning per share are shown and are
calculated on earnings available to Ordinary shareholders excluding
Specific items.
Underlying results are reported results adjusted to exclude the
effect of Specific items.
Going Concern
The Annual Report for the period ended 31 October 2020 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 2021.
The Group is now seeing the back of the COVID pandemic and its
impact on the business as revenues are rising again in almost all
markets and regions.
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
IFRS8 requires operating segments to be identified based on
information presented to the Chief Operating Decision Maker (CODM),
in order to allocate resources to the segments and monitor
performance.
The Group monitors performance at the adjusted operating profit
level before special items, interest and taxation.
In accordance with IFRS 8, no segment information is provided
for assets and liabilities in the disclosures below, as this
information is not regularly provided to the Chief Operating
Decision Maker.
Seasonality of operations
Historically, the second half of the financial year is
seasonally the strongest for the Group in terms of profits, however
due to the impact of the recent COVID 19 Pandemic, this remains to
be seen for the current year ending 31 October 2021.
Asia Europe United Corporate Total
Kingdom
& Ireland
costs
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)
--------------------------------- -------- -------- ----------- ---------- ---------
Underlying operating profit 3,987 10,065 1,635 (1,346) 14,342
--------------------------------- -------- -------- ----------- ---------- ---------
Specific items (1,305) (393) - (912)
--------------------------------- -------- -------- ----------- ---------- ---------
Operating profit excluding
associates 2,682 10,065 2,029 (1,346) 13,429
Share of post tax profits -
from associates
--------------------------------- -------- -------- ----------- ---------- ---------
Operating profit 13,429
Other gains 20
Finance Revenue -
Finance costs (1,442)
--------------------------------- -------- -------- ----------- ---------- ---------
Profit before tax 12,007
Tax (2,611)
Profit for period 9,396
--------------------------------- -------- -------- ----------- ---------- ---------
Capital expenditure (excluding
IFRS 16) 9,782 9,988 2,572 135 22,477
--------------------------------- -------- -------- ----------- ---------- ---------
Asia Europe United Corporate Total
Kingdom costs
& Ireland
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- --------- ----------- ---------- ---------
Six months ended 30 April
2020
Total revenue 19,968 54,377 18,820 - 93,165
Inter segment sales - (1,893) 254 - (1,639)
--------------------------------- -------- --------- ----------- ---------- ---------
Revenue from external customers 19,968 52,484 19,074 - 91,526
--------------------------------- -------- --------- ----------- ---------- ---------
EBITDA 4,363 12,786 2,062 (2,519) 16,693
--------------------------------- -------- --------- ----------- ---------- ---------
Depreciation and amortisation (2,267) (10,927) (3,533) (370) (17,097)
--------------------------------- -------- --------- ----------- ---------- ---------
Underlying operating profit 1,089 (10,485) (8,013) (3,896) (21,305)
--------------------------------- -------- --------- ----------- ---------- ---------
Specific items - (100) (1,176) - (1,276)
--------------------------------- -------- --------- ----------- ---------- ---------
Operating profit excluding
associates 1,089 (10,585) (9,189) (3,896) (22,581)
Operating profit - - - - (22,581)
--------------------------------- -------- --------- ----------- ---------- ---------
Other losses - - - - (644)
Finance costs - - - - (979)
Profit before tax - - - - (24,204)
--------------------------------- -------- --------- ----------- ---------- ---------
Tax - - - - 2,842
Profit for period - - - - (21,362)
--------------------------------- -------- --------- ----------- ---------- ---------
Capital expenditure 2,612 2,586 (7,532) 246 (2,088)
--------------------------------- -------- --------- ----------- ---------- ---------
18 months ended 31 October Asia Continental United Corporate Total
2020 Europe Kingdom
& Ireland
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- ------------ ----------- ---------- ---------
Total revenue 60,394 202,297 56,369 - 319,060
Inter segment sales (2) (7,067) (1,746) - (8,815)
---------------------------------- --------- ------------ ----------- ---------- ---------
Revenue from external customers 60,392 195,230 54,623 - 310,245
---------------------------------- --------- ------------ ----------- ---------- ---------
EBITDA 13,222 75,486 7,923 (9,319) 87,313
---------------------------------- --------- ------------ ----------- ---------- ---------
Depreciation and amortisation (6,741) (32,130) (11,278) (1,500) (51,649)
---------------------------------- --------- ------------ ----------- ---------- ---------
Impairment (1,981) (14,606) (15,760) - (32,347)
---------------------------------- --------- ------------ ----------- ---------- ---------
Underlying operating profit/loss 5,232 28,882 (18,444) (10,818) 4,852
---------------------------------- --------- ------------ ----------- ---------- ---------
Specific items (included
in EBITDA) (731) (133) (671) - (1,535)
---------------------------------- --------- ------------ ----------- ---------- ---------
Operating profit/loss excluding
associates 4,501 28,750 (19,115) (10,818) 3,317
Operating profit 3,317
---------------------------------- --------- ------------ ----------- ---------- ---------
Other losses (284)
Finance Revenue 51
Finance costs (2,593)
Profit before tax 491
---------------------------------- --------- ------------ ----------- ---------- ---------
Tax (2,844)
Loss for the period (2,353)
---------------------------------- --------- ------------ ----------- ---------- ---------
Capital expenditure (excluding
IFRS16) 4,972 31,797 9,855 484 47,108
---------------------------------- --------- ------------ ----------- ---------- ---------
Non-current assets 20,023 85,369 18,154 3,931 127,477
---------------------------------- --------- ------------ ----------- ---------- ---------
4. Taxation
Six months Six months 18 months
to to to
30 April 30 April 31 October
2021 2020 2020
GBP '000 GBP '000 GBP '000
Profit/(loss) before
tax 12,007 (24,204) 492
Total taxation charge (2,611) 2,842 (2,844)
------------------------- ----------- ----------- -----------
Effective tax rate -21.7% -11.7% -578.0%
------------------------- ----------- ----------- -----------
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 2021
The UK 2016 Finance Act was enacted in September 2016 and
confirmed the basic rate of UK Corporation tax at 19% for the
financial years 2018, 2019 and also for the financial year 2020.
This has not changed for the year 2021.
5. Dividends
Dividends paid and proposed
30 April 2021 31October
2020
------------------- ---- -----------------
pence GBP'000 pence GBP'000
per per
share share
----------------------------- -------- --------- --- ------- --------
Interim
2019 paid on 10 May 2019 - - 3.71 14,014
Final
2019 approved at AGM held
on 03 October 2019 - - 4.73 17,880
- - 8.44 31,894
-------- --------------- --------------------------- ------- --------
Period ending 30 April 2021
Following the COVID 19 Pandemic, the board did not declare any
dividends for the periods ending 31 October 2020 and 30 April
2021.
Financial year ended 30 April 2019
The Board declared an interim dividend of 3.71p per share for
the year ending 30 April 2019, paid on 11 May 2019 to shareholders
on the register on 6 April 2019.
The Board proposed a final dividend of 4.73p per share for the
year ending 30 April 2018 which was approved by shareholders at the
Annual General Meeting held on 03 October 2019 and paid on 9
November 2019.
6. 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 Period to
to 30 April 31 October
2021 2020
------------------------------------- ------------ -----------
Basic earnings per share 2.49p (0.62)p
Diluted earnings per share 2.48p (0.62)p
------------------------------------- ------------ -----------
Earnings available to shareholders
(GBP'000) 9,396 (2,352)
Weighted average number of shares
in issue in the period
- basic ('000) 378,011 377,749
- including dilutive share options
('000) 378,212 378,514
------------------------------------- ------------ -----------
Alternative earnings per share
Management assess the performance of the Group using a variety
of performance measures. Internally management reviews the Group's
performance on an "adjusted basis", that is to say taking into
accounts "other items". The Group's income statement and segmental
analysis show operating profit before and after other items. The
presentation and use of other items are a non-GAAP measure and the
use of this measure may not be comparable to similarly titled
measures used by other companies. Other items are those that in
management's judgement need to be disclosed separately by virtue of
their size, nature and or incidence. Management determines whether
an item is classified as other and warrants separate disclosure by
considering both qualitative and quantitative factors, such as the
nature, frequency and predictability of occurrence. This is
consistent with the way operating performance is presented and
reported to management.
The directors believe that the presentation of the Group's
results in this way is relevant to an understanding of the Group's
performance, as other items are identified by their size, nature or
incidence.
The impact of other items on operating profit is detailed in
note 3, segmental analysis.
Consistent with the above, management also calculate earnings
per share (EPS) and diluted earnings per share (DPS). Management
uses this as one factor in determining dividend policy.
The tables below reconcile EPS and DPS before and after other
items. Details of Specific items are shown in note 3.
Alternative earnings per share
GBP'000 EPS DPS pence
pence
--------------------------------------- --------- -------- -----------
April 2021
Earnings available to shareholders
(GBP'000) 9,396 2.49 2.49
Specific items net of tax 165
Other gains (20)
--------------------------------------- --------- -------- -----------
Earnings after specific items 9,541 2.52 2.52
--------------------------------------- --------- -------- -----------
Weighted average number of shares in
issue in the period 378,212
--------------------------------------- --------- -------- -----------
October 2020
Earnings available to shareholders
(GBP'000) (2,352) (0.62) (0.62)
Specific items net of tax 1,535
Gain on financial assets classified
as available for sale (284)
--------------------------------------- --------- -------- -----------
Earnings after specific items (1,101) (0.29) (0.29)
--------------------------------------- --------- -------- -----------
Weighted average number of shares in
issue in the period 378,514
--------------------------------------- --------- -------- -----------
7. Non-current assets - intangibles, property, plant and equipment and investment property
Goodwill Other intangible Property Investment
assets , plant property
&
-----------------------------------
equipment
-----------------------------------
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- ----------------- ---------- -----------
Net book value at 30 April
2019 18,419 31,281 95,353 648
----------------------------------- --------- ----------------- ---------- -----------
Exchange adjustment 28 (913) 937 27
Additions - photobooths &
vending machines 37,319
Additions - other assets 464 2,446 8,580
Right of Use assets 9,687
Amortisation & Depreciations (13,796) (40,226)
Impairments (5,143) (17,538) (24)
Disposals at net book value (46) (3,827)
----------------------------------- --------- ----------------- ---------- -----------
Net book value at 31 October
2020 13,767 18,972 90,285 652
----------------------------------- --------- ----------------- ---------- -----------
Exchange adjustment (92) (615) (4,510) (22)
Additions - photobooths & vending
machines 21,786
Additions - other assets 691
Amortisation & Depreciation (1,837) (10,550) (8)
Impairments (1,210)
Disposals at net book value 1 (2,025)
----------------------------------- --------- ----------------- ---------- -----------
Net book value at 30 April 2021 13,675 17,212 93,776 622
----------------------------------- --------- ----------------- ---------- -----------
8. Net Cash
30 April 31 October 30 April
2021 2020 2020
GBP'000 GBP'000 GBP'000
----------------------------------------- --------- ----------- ---------
Cash and cash equivalents per statement
of financial position 95,273 106,193 65,509
Financial assets held at amortised
cost 984 984 984
Non-current instalments due on bank
loans (33,373) (39,444) (38,588)
Current instalments due on bank loans (44,007) (45,434) (19,566)
Leases (1,999) (422) (414)
Net cash 16,878 21,877 7,928
----------------------------------------- --------- ----------- ---------
Following the adoption of IFRS 9, Financial assets - held to
maturity was reclassified as Financial assets held at amortised
cost.
At 30 April 2021, GBP984,000 (31 October: 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.
9. IFRS- 3 Business Combination Purchase Price Allocation
The group continues to expand with the recent acquisition of
100% of the Japanese ID photobooth business of Plaza Create Co.
Ltd. The transaction completed on the 1st of February 2021 by a
Group subsidiary in Japan (Nippon Auto-Photo) for a consideration
of JPY 950,000,000 (GBP6,692,000).
The purchase consideration was paid entirely in cash.
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.
Acquisition-related costs
Acquisition-related costs of GBP416,000 are included in
Administrative expenses in the Condensed Statement of Comprehensive
Income.
Revenue contribution
The acquired business contributed revenues of GBP1.4m to the
Group for the period from 1 February 2021 to 30 April 2021.
10. Related parties
The Group's significant related parties are disclosed in the
2020 Annual Report and include its associates, its pension funds
and the Company's Directors. During the 6 months ended 30 April
2021, there were no new related parties and no additional related
party transactions have taken place that have materially affected
the financial position or performance of the Group. In addition
there were no material changes in the nature and relationship of
transactions with related parties to those identified in the 2020
Annual Report.
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 twelve 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 twelve 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)
8 July 2021
INDEPENDENT REVIEW REPORT TO PHOTO-ME INTERNATIONAL PLC
We have been engaged by Photo-Me International PLC ("the
Company") to review the financial information for the six months
ended 30 April 2021 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 15(th) June 2021. 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 Photo-Me International PLC as at 30 April
2021 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
Mazars LLP
Chartered Accountants
Tower Bridge House
St Katharine's Way
London
E1W 1DD
Date: 12 July 2021
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 12 months to 30
April 2020. 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.photo-me.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 RBMRTMTIBBLB
(END) Dow Jones Newswires
July 12, 2021 02:00 ET (06:00 GMT)
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