Smile: Photo-Me’s shares soar after positive trading update
Shares in booth operator Photo-Me have risen 6.9 per cent on London’s main market this afternoon following a glowing trade update.
The board expect revenues to beat expectations after a strong fourth-quarter performance and rise to £210m, with profit before tax between £25-30m.
As of October 31, it has a net cash balance of £33.8 million – including £10.8m in acquisitions.
The group’s gross debt remains high at £65.9m, but Photo-Me has seen recoveries across key markets such as UK and France, with demand for quick photo services to complete travel documents and identification returning amid easing pandemic restrictions this summer.
While it initially benefitted from the My Number card scheme in Japan, the market has become more challenging since the reutnr of restrictions across the country and Asia more widely.
Alongside its photobooth business, Photo-Me has continued to expand its laundry operations (Revolution Laundry) operations and has also bolstered its food business (Feed.ME) with the acquisition of a pizza vending machine manufacturer.
The operations are part of its new corporate brand strategy, ME Group, with Photo-Booth looking to continue diversifying its operations.
Despite the upbeat forecasts, the board remains cautious of the macro-economic challenges, which include rising inflationary cost pressures, supply chain issues and the Omicron variant.
Photo-Me will publish its results for the 12 months ended 31 October 2021 on Wednesday 23 February 2021.