Photo-Me looks for positives after heavy loss

Photo-booth firm Photo-Me International set out a recovery plan today after “deeply unsatisfactory” results saw it plunge £21.6m (€27.2m) into the red.

The loss for the year to April 30 included £14.8m (€18.6m) of one-off items after a failed attempt to sell its vending arm disrupted the business.

Chief executive Thierry Barel said he hoped the figures marked the end of a disappointing period for the group, which will now look to lead a turnaround by extending its product range beyond digital imaging.

As well as kiosks providing traditional photo printing, the company will look at other digital media such as music and ring tones and mobile office services, including copiers and business cards.

It said the company’s potential was reflected in its base of around 43,000 vending units, half of which are traditional photobooths.

However, it warned it expected to feel the impact on passport photography of the trend towards centralisation of biometric data, involving finger and iris scans as well as digital images.

Mr Barel, who took the helm last year, said: “Photo-Me’s objective is to become a leading operator, supplier and servicer of instant service equipment, with a product offering that increasingly extends beyond digital imaging.”

The strategy was endorsed by new chairman Hugo Swire, who described the results today as “deeply unsatisfactory”.

He added: “The board is determined that today should mark the end of a disappointing period in the group’s history.”

Photo-Me was forced to abandon the vending unit sale because of the turmoil in financial markets. Activist shareholders had earlier ousted the company’s top two directors after expressing disappointment at the pace of the sale process.