Photo-Me restructures Japanese subsidiary, reiterates guidance

24th Oct 2018 10:35

(Sharecast News) - Photo-Me issued an upbeat trading update on the first five months of its financial year, with positive developments in Japan and Europe.Photo-Me, which operates photobooths, self-service laundry outlets and digital printing kiosks, told investors that trading in the period had been in line with expectations, with the group continuing to make "good strategic and operational progress" across its principal business areas after it took action to restructure its Japanese subsidiary.Ahead of its annual general meeting on Wednesday, the company said it will reiterate its full-year guidance, with first-half results in line with last year's, excluding an exchange gain and a favourable commercial litigation outcome.In Japan, the London main market-listed outfit deployed new ID upload units, which promise a 35% faster return on investment, while low revenue machines were relocated and unprofitable ones were completely removed.Photo-Me said: "Whilst the photo-identification market in Japan remains highly competitive, the benefits of Photo-Me's initiatives are becoming evident earlier than initially expected. The board is confident that its Japanese subsidiary will return to growth in FY 2019."In Europe, Photo-Me said it was in "advanced discussions" with French and Dutch authorities to roll out its encrypted passport photo upload technology.Photo-Me's tech has only approved to be used in driving licence renewals in France, but the firm plans to extend its offerings to include encrypted uploads for new passports and identification cards.As of 1035 BST, Photo-Me shares had shot up 10.44% to 110p.