Photo-Me picture looks ugly

SHARES in Photo-Me International fell more than 8% as the world's largest operator of photo booths revealed the true extent of its terrible year. As pre-tax losses spiralled to £10m from £400,000 last year, PMI said no parts of its business had performed well.

Chief executive Serge Crasnianski said: 'PMI believes that the UK is unlikely to return to profit for at least two years.' He warned that recovery in the current year is 'likely to be limited and to be dependent on a strong second half for manufacturing'.

Crasnianski talked up the opportunities for PMI in selling digital minilabs, claiming the market could be worth £5bn a year. The first 30 units capable of producing 1,500 prints an hour - more than twice the number churned out by the old machines - start operating next month.

Turnover dropped 10% to £186.9m for the year ended 30 April and basic earnings per share were 0.3p against 4.01p last time. PMI notched up £12.5m of exceptional charges, including £1m converting its machines to euros and £1m in litigation fees. Last year exceptional items totalled £24.1m. There is no final dividend.