Photo-Me reports year-end results drop 5.6% due to COVID-19

Instant-service equipment maker Photo-Me International plc, announced total group revenue dropped 5.6% to £215.4 million for the 12 months ended April 30, 2020. The company said, “due to the significant impact of COVID-19 on consumer activity”, the group lost £22.7 million of revenue as a direct impact of the virus, mainly in March and April.

Underlying profit before tax was £28.4 million. Photo-Me estimates underlying profit before tax in the 12-month period was £17.7 million, lower than anticipated due to the impact of COVID-19. The results include £23.7 million of exceptional items. As a result, reported profit was £4.1 million, compared with £42.6 million in the 12 months ended April 30, 2019.

The company said its Identification segment was several impacted by the pandemic and the ongoing challenges in the U.K. market, where home-taken photos are being accepted for official documents such as passports. This impacted revenue by 13.1%. The decline includes a 44.4% reduction in Identification revenue in the United Kingdom.

“The pandemic has and continues to have a significant impact on all the Group’s end markets, resulting in lower consumer demand,” says Serge Crasnianski, CEO and Board chairman. “The Board believes that activity levels could take some time to return to pre-COVID-19 levels. A thorough review of the business is underway and restructuring programmes are being implemented to better align operations to the current trading conditions. The Board will provide an update on market guidance once it has more clarity around the extent and duration of the COVID-19 impact and when the outlook for the business becomes clearer.

“Looking ahead, the Group will continue to seek to diversify its operations primarily through investment in its Laundry rollout programme and through KIS Food product Innovation.”