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Last Updated: Monday, 2 July 2007, 14:12 GMT 15:12 UK
Directors quit troubled Photo-Me
Photo-Me digital media kiosks
The future of the company's photo-booth business is key issue
Four directors have resigned from Photo-Me International, the operator of automatic photo booths, following pressure from a major shareholder.

Their departure came as the company announced annual pre-tax profits had slipped to 7.4m, from 21m a year ago.

The four men stepped down after Principle Capital, with 10% of the shares, sought a boardroom clear-out.

It is also recommending that the board should halt a review which could lead to a break-up of the business.

Possible sale

Despite the latest upheaval, Photo-Me said it would continue with the review, which it believed was backed by the majority of shareholders.

The board is unanimous in its belief that the strategy it is pursuing is the right one to maximise value
Vernon Sankey, PMI chairman

The review is looking at the possible sale of the vending division, which is responsible for photo booths and the media kiosks which process prints from digital cameras and phones.

The Surrey-based company said there had been "strong interest" from potential buyers.

The company's chairman, Vernon Sankey, said: "The board is unanimous in its belief that the strategy it is pursuing on a number of fronts is the right one to maximise value."

Photo-Me's other businesses include a manufacturing arm involved in making photo-processing equipment such as mini-labs installed in supermarkets and pharmacies.

The board members leaving now are executive directors Riccardo Costi and Francois Giuntini, and non-executive Francis Wahl. The company's life president Dan David will step down as a non-executive director by the end of the year.

Outlook

Looking ahead, chief executive Serge Crasnianski identified some areas for growth driven by the increasing appetite for ID cards around the world.

He forecast that the introduction of a national health card this year in France could see demand for 50 million photographs, while 25 million photos could be required for tobacco cards in Japan.




SEE ALSO
Photo-Me sees sharp profit fall
18 Dec 06 |  Business
Photo-Me in 5m Post Office deal
13 Feb 06 |  Business
Photo-Me helped by digital kiosks
21 Jun 05 |  Business

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