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 23 April 2021

Photo-Me International plc

("Photo-Me" or "the Group")

Trading Update

Photo-Me International plc (PHTM.L), the instant-service equipment group, announces an update on the Group's trading position. 

In the first five months (ended 31 March 2021) of the 2021 financial year the Group performed better than expected, driven by stronger than anticipated trading momentum in Japan due to an increase in applications for the My Number card, the Japanese government's social security and taxation photo identification card scheme. In Japan, the Group's photobooths are equipped to scan the unique My Number card QR code that every Japanese citizen has received, and match the ID photo to the card application. The My Number card scheme, which is not mandatory, was launched in 2015. A government-backed incentive scheme to promote citizen applications was introduced in September 2020 and is due to run until the end of September 2021.

Consequently, the Board has revised its expectations for the financial year ending 31 October 2021 and is pleased to announce that it now expects to report revenue of between £190 million to £200 million (previously £175 million) and profit before tax of between £15 million to £19 million before exceptional items (previously £9 million before exceptional items).

Outside of Japan, trading in the period was in line with the Board's expectations. The Group's multi-country restructuring plans to improve profitability are on track to complete at the end of April 2021 and vaccination programmes continue to provide encouragement.

Nevertheless, economic uncertainty remains across many of the Group's operating markets due to the COVID-19 pandemic, particularly in France which is a major contributor to the Group's results, and in Japan and Germany where there is the possibility of a reinforcement of lockdown measures. The Board continues to closely monitor activity across all its end markets and will seek to provide a further update in July 2021 when the Group publishes its interim results.

ENQUIRIES

Notes to Editors

Photo-Me International plc (LSE: PHTM) operates, sells and services a wide range of instant-service vending equipment, primarily aimed at the consumer market.

The Group operates vending units across 17 countries and its technological innovation is focused on three principal areas:

The Group entered the self-service fresh fruit juice equipment market in April 2019, with the acquisition of Sempa. This will become a key business area alongside Identification, Laundry, and Kiosks, and will be a significant part of the Group's future growth strategy.

In addition, the Group operates other vending equipment such as children's rides, amusement machines, and business service equipment.

Whilst the Group both sells and services this equipment, the vast majority of units are owned, operated and maintained by Photo-Me. Photo-Me pays the site owner a commission based on turnover, which varies depending on the country, location and the type of the machine.

The Group has built long-term relationships with major site owners and its equipment is generally sited in prime locations in areas of high footfall such as supermarkets, shopping malls (indoors and outdoors), public transport locations, and administration buildings (City Halls, Police etc.). Equipment is maintained and serviced by an established network of 650 field engineers.

Photo-Me's shares have been listed on the London Stock Exchange since 1962.