Photo-Me International returns cash via special dividend

Photo booth operator Photo-Me International said it has approved the return of eleven million pounds to shareholders by way of a special dividend of three pence per ordinary share, payable in March.

The instant service equipment group had announced in December that its net cash position at the end of October 2012 had increased to £70m and that it would be considering options to return some of this cash to shareholders.

A growing estate, tighter management and lower costs all contributed to growth with significant improvements in Germany, Switzerland and Japan and robust performance in its largest market, France.

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"Photo-Me is not making any commitment at this time to any further return of cash, but will continue to review the situation in the light of the group's financial performance going forward," it said in a statement.

The Surrey-based group, which is also looking at installing laundry machines and dryers alongside its photo booths at supermarkets after encouraging trials in France and Belgium, added that it will be investing in and self-financing its new laundry product as well as other new product initiatives.

CEO Serge Crasnianski commented: "We have made great strides in the last three years both in terms of product development and financial performance, particularly cash generation."

"We have some exciting new products to launch in the coming months and it is pleasing to be in a position to be able to finance these internally and at the same time increase our returns to shareholders".

CJ