Pre-tax profit up 20 per cent at Photo Me

Instant service equipment group Photo Me experienced a 17.4 per cent increase in pre-tax profit despite a decline in revenue, according to its half-yearly results published on Friday.

The small cap company, which has a market capitalisation of £208.43m, demonstrated strong results with pre-tax profit rising to £20m in the six months to October, compared to £17m in the corresponding period last year.

Revenue fell 7.1% to £107.4m from £115.6m a year earlier and the dividend rose 20% to 1.5p from 1.25p.

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John Lewis, Non-Executive Chairman of Photo Me, said: "The Group has again traded well in what is traditionally its stronger half and delivered a record result, despite a currency headwind. A growing estate, tighter management and lower costs have all contributed to this with notable improvements in Germany, Switzerland and Japan and another very good performance in our largest market, France."

He added:"In addition it is pleasing to report that the sales and servicing division, whilst smaller than it was, has returned to profitability after an extended period of restructuring".

The group's net cash position at the end of October was £70m, an increase of £18m since the end of April.

The company is currently preparing to introduce coin-operated laundry machines more widely, which it expects will have "substantial potential in the medium-term".

MF