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Shares in Photo-Me International PLC rose on Tuesday as on top of a strong interim performance and special dividend payout the company also guided for further growth in its financial year as a whole.
Photo-Me also said it plans to change its company name to its current trademark and trading name ME Group, saying this reflects its transition into a broader-based concession firm from just a photobooth operator.
Photo-Me said it plans to change its listing name in the autumn of 2022.
Shares in the Epsom, Surrey-based operator of instant-service equipment were 16% higher at 92.80 pence on Tuesday morning in London.
For the six months ended April 30, Photo-Me posted a pretax profit of £19.9 million, a 65% increase from £12.0 million the same period a year before, on revenue which grew 22% year-on-year to £115.3 million from £94.6 million.
Earnings before interest, tax, depreciation and amortisation rose 40% to £40.2 million from £28.7 million a year before.
Revenue growth was attributed to the continued easing of Covid-19 related restrictions across key operating markets, as well as higher demand for passports and other official documentation.
Specifically, the Photobooth business recovered at a stronger pace than expected on eased travel and social restrictions, while the Laundry business continued to expand, providing further revenue growth.
Photo-Me resumed its dividend payout, with an ordinary dividend of 2.6 pence per share, and a special payout of 6.5p as a result of what it called its strong cash position of £43.2 million as at April 30.
Looking ahead, Photo-Me expects at least 20% revenue growth for its current financial year, compared to £214.4 million the year before. As a result, the group has guided for Ebitda to range from £79 million to £84 million, a 21% to 29% rise from £65.1 million.
‘We are proud to announce an extremely strong first half performance, ahead of the board's expectations. Demand for our machines continues to grow at pace, as economies reopen and confidence returns among consumers globally, and we are working hard to keep up with evolving trends and consumer needs,’ said Chief Executive Officer Serge Crasnianski.
‘The opportunities for the group and our consumers are endless, supported by our ME Group corporate brand which better reflects our strategic diversification. Our plans to change the listed entity name later this year will be an important start to the next chapter of our growth story.’
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