Putting you in the picture
Photo-Me International plc Annual Report 2005
Photo-Me International plc
Church Road
Bookham
Surrey KT23 3EU
T el:     +44 (0)1372 453399
Fax:  +44 (0)1372 459064
Web: www.photo-me.co.uk
Contents
01 Financial highlights
02 Chairman’s statement
04 Chief executive’s review
20 Financial review
24 Board of directors and secretary
26 Report of the directors
28 Corporate governance
31 Remuneration report
35 Statement of directors’ responsibilities
35 Independent auditor’s report
36 Group profit and loss account
37 Balance sheets
38 Group cash flow statement
38 Notes to the cash flow statement
40 Group statement of total recognised gains and losses
40 Reconciliation of movements in shareholders’ funds
41 Notes on the accounts
64 Five year summery
65 Company information and advisors
66 Group executives
67 Shareholder information
PMI is a specialist digital imaging
company focused on professional
laboratories and end-consumer
vending solutions.
PMI has 28,000 vending locations
worldwide and is the world’s leading
operator of photobooths, with 
20,000 sited. PMI has started to 
roll-out Digital Media Kiosks which
enable digital camera users to fulfil
their instant imaging needs.
PMI manufactures a unique and
complete range of photo-processing
equipment covering all market
segments, from wholesale, via
specialist and general retail, to 
end-consumer kiosks.
Open here to view our
equipment range
p
Photo-Me International plc Annual Report 2005
  Manufacturing
PMI’s Manufacturing business primarily comprises photo-processing equipment. 
The Grenoble (France) activity of Kis includes the R&D, design and manufacture 
of photobooths, primarily for use by the Vending division, and a range of minilabs
which are sold to retailers wishing to offer on-site photo-processing services. 
Volume production of such equipment has recently been sub-contracted to 
specialist manufacturers in low-cost territories (currently Poland and China). 
The Zurich-based subsidiary, Imaging Solutions, designs and builds high output
wholesale photo-processing machines.
h Imaging Solutions fastScan 20
At over 22,000 images per hour, the fastScan 20 is the
World’s fastest digital scanner of 35mm and APS films.
The fastScan allows wholesale photofinishers to print on
the fastPrint, to store or write to CD, all at very high
levels of productivity.
h Imaging Solutions fastPrint 20
The fastPrint 20 produces high quality colour prints at
speeds in excess of 20,000 prints per hour. Handling 
a range of inputs from scanned negatives, digital
cameras or other digital sources the printer uses more
than 2.2 million highly reflective mirrors to produce
quality colour prints on conventional photographic
paper. The fastPrint is used more widely by independent
labs all over the world than any other fast digital printer.
h DKS 1510 Minilab
The entry level minilab in the DKS 1500 range, with a
printing capacity of 800 prints per hour. As with other
DKS minilabs, red-eye reduction, enlargements,
calendars and white borders are among the many
premium rate services which can be offered.
h DKS 1530 Minilab
The DKS 1530 uses the same software, scanner 
and touch screen as the DKS 1550, but with an output
of 1,100 prints per hour.
h DKS 1550 Minilab
Winner of the DIMA award for the third successive year
at the prestigious PMA exhibition in the USA, the DKS
1550 can manipulate images from any digital or film
source (including 35mm, 120mm, APS, slides, digital
memory cards, CD’s, floppy disks and even existing
photos) and can print 1,500 photos per hour.
h DKS 900 Minilab
Launched in 2004, the DKS 900 is the first digital
minilab to offer thermal (dry process) technology.
Costing significantly less than a conventional minilab,
the DKS 900 offers a full range of printing services 
and is a fully expandable system, with an output of 
250-1,000 prints per hour.
h DKS Workstation
Used in conjunction with the DKS 1500 series of
minilabs, the DKS workstation acts as an additional
source of input of digital media and scanning of films, 
to increase productivity.
h e-Station
An instant digital media kiosk, ideally suited to a retail
environment. Can be networked to a digital minilab, or
connected via ADSL to a central laboratory, or can
operate as a stand-alone kiosk to create high quality
photos from all digital media. Consumers have the
ability to view, select and edit their digital photos 
before they print.
Vending
PMI’s Vending business comprises the operation of photobooths and other vending
equipment including digital media kiosks, photocopiers and express printing
machines, and increasing numbers of entertainment equipment and children’s rides.
With over 28,000 sited machines in 20 countries worldwide, PMI has a unique
maintenance and cash collection infrastructure.
h Photovision
Photovision combines the best of digital technology
image capture with the output being printed on Kodak
photographic paper. With Photo-Me’s usual view-before-
you-print system, Photovision has a proven track record
in ID photo provision.
h Minibooth
Fulfilling the needs for a compact solution, the
Minibooth offers photobooth convenience in a small
cabinet of under 0.9 square metres. It is also one of 
the fastest photobooths available, generating digital
prints in under one minute.
h Minibooth2
The latest generation Minibooth provides a full range 
of ID, portrait and ‘fun’ photos together with digital
printing services from cameras and mobile phones.
h ND 30
Developed for the Japanese market, the ND30 uses
digital technology, is compact in size and has extremely
fast printing, producing a photograph in as little as 
19 seconds.
h Digibooth
Using digital technologies, the Digibooth provides 
a range of ID, portrait and ‘fun’ photos or photographic
stickers. Prints are delivered in under one minute with
excellent results.
h Opera (Digital Media Kiosk)
A new concept in convenience printing that allows
digital camera users to print superb images from flash
memory and other digital inputs, as well as printing
camera phone pictures via infra-red and bluetooth links.
The images are all processed onto Kodak photographic
paper to give excellent archival quality.
h Symphonia (Digital Media Kiosk)
Offering similar services to the Opera but with a smaller
footprint, the Symphonia uses the latest thermal printing
technology. The prints are not only super sharp but are
also delivered in seconds.
h Symphonia 2 (Digital Media Kiosk)
The second generation of thermal Digital Media Kiosk
offers additional features (different print sizes, black and
white or sepia prints, white borders, etc.) and will be
built in volume in China.
Designed and produced by Radley Yeldar (London)
Environmental statement:
The Company’s commitment to environmental issues has been reflected in the production
of this Annual Report and Accounts. The cover and text pages are printed on Mega Matt,
using a chlorine free process, produced from 50% pre and post consumer waste. Nordic
Swan certified. Manufacturing
PMI’s Manufacturing business primarily comprises photo-processing equipment. 
The Grenoble (France) activity of Kis includes the R&D, design and manufacture 
of photobooths, primarily for use by the Vending division, and a range of minilabs
which are sold to retailers wishing to offer on-site photo-processing services. 
Volume production of such equipment has recently been sub-contracted to 
specialist manufacturers in low-cost territories (currently Poland and China). 
The Zurich-based subsidiary, Imaging Solutions, designs and builds high output
wholesale photo-processing machines.
h Imaging Solutions fastScan 20
At over 22,000 images per hour, the fastScan 20 is the
World’s fastest digital scanner of 35mm and APS films.
The fastScan allows wholesale photofinishers to print on
the fastPrint, to store or write to CD, all at very high
levels of productivity.
h Imaging Solutions fastPrint 20
The fastPrint 20 produces high quality colour prints at
speeds in excess of 20,000 prints per hour. Handling 
a range of inputs from scanned negatives, digital
cameras or other digital sources the printer uses more
than 2.2 million highly reflective mirrors to produce
quality colour prints on conventional photographic
paper. The fastPrint is used more widely by independent
labs all over the world than any other fast digital printer.
h DKS 1510 Minilab
The entry level minilab in the DKS 1500 range, with a
printing capacity of 800 prints per hour. As with other
DKS minilabs, red-eye reduction, enlargements,
calendars and white borders are among the many
premium rate services which can be offered.
h DKS 1530 Minilab
The DKS 1530 uses the same software, scanner 
and touch screen as the DKS 1550, but with an output
of 1,100 prints per hour.
h DKS 1550 Minilab
Winner of the DIMA award for the third successive year
at the prestigious PMA exhibition in the USA, the DKS
1550 can manipulate images from any digital or film
source (including 35mm, 120mm, APS, slides, digital
memory cards, CD’s, floppy disks and even existing
photos) and can print 1,500 photos per hour.
h DKS 900 Minilab
Launched in 2004, the DKS 900 is the first digital
minilab to offer thermal (dry process) technology.
Costing significantly less than a conventional minilab,
the DKS 900 offers a full range of printing services 
and is a fully expandable system, with an output of 
250-1,000 prints per hour.
h DKS Workstation
Used in conjunction with the DKS 1500 series of
minilabs, the DKS workstation acts as an additional
source of input of digital media and scanning of films, 
to increase productivity.
h e-Station
An instant digital media kiosk, ideally suited to a retail
environment. Can be networked to a digital minilab, or
connected via ADSL to a central laboratory, or can
operate as a stand-alone kiosk to create high quality
photos from all digital media. Consumers have the
ability to view, select and edit their digital photos 
before they print.
Vending
PMI’s Vending business comprises the operation of photobooths and other vending
equipment including digital media kiosks, photocopiers and express printing
machines, and increasing numbers of entertainment equipment and children’s rides.
With over 28,000 sited machines in 20 countries worldwide, PMI has a unique
maintenance and cash collection infrastructure.
h Photovision
Photovision combines the best of digital technology
image capture with the output being printed on Kodak
photographic paper. With Photo-Me’s usual view-before-
you-print system, Photovision has a proven track record
in ID photo provision.
h Minibooth
Fulfilling the needs for a compact solution, the
Minibooth offers photobooth convenience in a small
cabinet of under 0.9 square metres. It is also one of 
the fastest photobooths available, generating digital
prints in under one minute.
h Minibooth2
The latest generation Minibooth provides a full range 
of ID, portrait and ‘fun’ photos together with digital
printing services from cameras and mobile phones.
h ND 30
Developed for the Japanese market, the ND30 uses
digital technology, is compact in size and has extremely
fast printing, producing a photograph in as little as 
19 seconds.
h Digibooth
Using digital technologies, the Digibooth provides 
a range of ID, portrait and ‘fun’ photos or photographic
stickers. Prints are delivered in under one minute with
excellent results.
h Opera (Digital Media Kiosk)
A new concept in convenience printing that allows
digital camera users to print superb images from flash
memory and other digital inputs, as well as printing
camera phone pictures via infra-red and bluetooth links.
The images are all processed onto Kodak photographic
paper to give excellent archival quality.
h Symphonia (Digital Media Kiosk)
Offering similar services to the Opera but with a smaller
footprint, the Symphonia uses the latest thermal printing
technology. The prints are not only super sharp but are
also delivered in seconds.
h Symphonia 2 (Digital Media Kiosk)
The second generation of thermal Digital Media Kiosk
offers additional features (different print sizes, black and
white or sepia prints, white borders, etc.) and will be
built in volume in China.
Designed and produced by Radley Yeldar (London)
Environmental statement:
The Company’s commitment to environmental issues has been reflected in the production
of this Annual Report and Accounts. The cover and text pages are printed on Mega Matt,
using a chlorine free process, produced from 50% pre and post consumer waste. Nordic
Swan certified. Putting you in the picture
Photo-Me International plc Annual Report 2005
Photo-Me International plc
Church Road
Bookham
Surrey KT23 3EU
T el:     +44 (0)1372 453399
Fax:  +44 (0)1372 459064
Web: www.photo-me.co.uk
Contents
01 Financial highlights
02 Chairman’s statement
04 Chief executive’s review
20 Financial review
24 Board of directors and secretary
26 Report of the directors
28 Corporate governance
31 Remuneration report
35 Statement of directors’ responsibilities
35 Independent auditor’s report
36 Group profit and loss account
37 Balance sheets
38 Group cash flow statement
38 Notes to the cash flow statement
40 Group statement of total recognised gains and losses
40 Reconciliation of movements in shareholders’ funds
41 Notes on the accounts
64 Five year summery
65 Company information and advisors
66 Group executives
67 Shareholder information
PMI is a specialist digital imaging
company focused on professional
laboratories and end-consumer
vending solutions.
PMI has 28,000 vending locations
worldwide and is the world’s leading
operator of photobooths, with 
20,000 sited. PMI has started to 
roll-out Digital Media Kiosks which
enable digital camera users to fulfil
their instant imaging needs.
PMI manufactures a unique and
complete range of photo-processing
equipment covering all market
segments, from wholesale, via
specialist and general retail, to 
end-consumer kiosks.
Open here to view our
equipment range
p
Photo-Me International plc Annual Report 2005
  01 Photo-Me International plc 
Annual Report 2005
Financial highlights
+7 .3%
T urnover 2005: £236.0m 
2004: £219.9m
+62.0%
*Adjusted profit before tax 2005: £34.5m 
2004: £21.3m
+54.7%
*Adjusted basic earnings per share 2005: 6.28p 
2004: 4.06p
+100.0%
Dividends per share 2005: 2.0p 
2004: 1.0p
+£1 .2m
Net cash 2005: £4.1m 
2004: £2.9m
Financial highlights
*
’Adjusted’ excludes an exceptional charge of £0.8m
(2004: exceptional credit of £0.4m) and a goodwill
amortisation charge of £0.7m (2004: £0.5m). In the 
case of adjusted EPS, a tax credit on the exceptional
charge of £0.3m is also reflected in respect of 2005.
   02 Photo-Me International plc 
Annual Report 2005
Chairman’s statement
Chairman’ s statement
p
“I am delighted to report, for the year to 30 April
2005, a record year in terms of turnover, pre-tax
profit and earnings per share.”  03 Photo-Me International plc 
Annual Report 2005
In my first communication with you as Chairman, I am
delighted to report, for the year to 30 April 2005, a 
record year in terms of turnover, pre-tax profit and
earnings per share. 
The adjusted pre-tax profit, which totals £34.5m, 
has again exceeded market expectations. 
Prospects for further progress remain good.
Financial overview
On turnover up 7.3% at £236.0m, adjusted pre-tax profit
increased by 62.0% to £34.5m – a record by a wide
margin. Adjusted basic earnings per share were 54.7%
higher at 6.28p, reflecting an increased effective tax rate.
“ Adjusted” excludes an exceptional charge (in connection
with restructuring in Japan) of £0.8m (2004: exceptional
credit of £0.4m) and a goodwill amortisation charge of
£0.7m (2004: £0.5m). The reported figures are a pre-tax
profit of £33.0m (2004: £21.1m), up 56.4%, and EPS of
5.96p (2004: 4.01p), up 48.6%.
After £34.5m of capital expenditure and financial
investment, net cash balances increased to £4.1m 
from £2.9m.
Dividends
A final dividend per share of 1.2p (2004: 1.0p) 
is proposed. T ogether with the interim dividend of 
0.8p (2004: nil), dividends per share are doubled at
2.0p (2004: 1.0p) and are three times (2004: four 
times) covered.
If approved at the AGM on 28 September 2005, the 
final dividend will be paid on 2 November 2005 to
shareholders on the register at close of business on 
7 October 2005. The ex-dividend date is 5 October 2005. 
Business overview
In the Vending Division (which has an unrivalled network
of 28,000 sites worldwide), operating profit improved
although turnover decreased by 2.4%.
Manufacturing turnover increased by 24.8% to 
£98.0m, representing 42% (2004: 36%) of total 
turnover. Manufacturing contributed the bulk of the 
pre-tax profit and its increase, benefiting from increased
volumes and higher margins following the transfer of
minilab manufacture to a sub-contractor in Poland in
January 2004.
Board
On 1 February 2005, Dan David retired as Chairman,
having fulfilled that role for the past 12 years. Mr David
continues as a non-executive director and has been
appointed Life President. 
Subsequent to the year end, on 1 June 2005, David
Scotland resigned as a non-executive director, having
made a valuable contribution during his four years in that
role. He is succeeded by Hugo Swire who brings to the
Board wide-ranging experience in business development
in international markets. 
Employees
On behalf of my fellow Directors, I would like to thank
PMI's employees, who number more than 1,600
worldwide, for their tremendous efforts in helping to
achieve another hugely successful year.
Prospects
In the current year, in Vending, both photobooths and
Digital Media Kiosks should continue to make a positive
contribution. In Manufacturing, another good
performance is expected. Overall, the Directors are
confident of further progress.
Further out, in Vending, photobooths will benefit from
changes in ID regulations in France and Japan, two of
PMI’s principal markets. Additionally, the roll-out of
Digital Media Kiosks is expected to contribute
significantly to Group performance. In Manufacturing, 
the DKS 3 minilab (which is the first digital minilab of 
the third generation) enhances the product range, whilst
the North American market represents a significant
opportunity. Overall, prospects for sustained profitable
growth remain good. 
Vernon Sankey
Chairman
Chairman’s statement 04 Photo-Me International plc 
Annual Report 2005
Chief executive’s review
Chief executive’ s review
p
“I am confident that PMI has good opportunities 
for sustained profitable growth.” 05 Photo-Me International plc 
Annual Report 2005
Chief executive’s review
In my 2004 Chief Executive’s Review, I said that the year
to 30 April 2004 represented a turning point in PMI’s
history. The Board’s financial objectives had been
exceeded in an outstanding year and beyond its initial
expectations. Additionally, PMI’s product platform had
put PMI in a unique position to continue to benefit from
the digital revolution.
Happily, in the year to 30 April 2005, my confidence was
vindicated. The financial upwards momentum has been
maintained, with increases in adjusted pre-tax profit and
earnings per share of over 50% to figures which are a
record by a wide margin and ahead of market
expectations. Vending produced a solid performance,
increasing its contribution to profit, further upgrading its
operating equipment, and extending its service offer.
Manufacturing had an excellent year, in particular the
minilab business in its first full year of manufacture by a
sub-contractor in Poland, and also the Imaging Solutions
wholesale lab business in Switzerland.
Perhaps of considerable relevance for the future of
Vending was the encouraging start achieved by PMI’s
Digital Media Kiosks, in particular in France. Subsequent
to the year-end, production was transferred to a sub-
contractor in China, thereby reducing costs significantly.
The volume roll-out of Chinese manufactured Digital
Media Kiosks has recently begun. 
PMI has a unique Vending network and a unique
Manufacturing product range which will be
supplemented in the next year or so by a new generation
of digital minilab. PMI’s digital imaging market is
substantial, fast growing and changing to PMI’s
advantage. I am therefore confident that PMI has good
opportunities for sustained profitable growth.
Business review
Continental Europe, which includes the great majority of
the Manufacturing turnover, contributed 60% (2004:
59%) of Group turnover and, again, substantially all of
pre-tax profit. 
In the UK and Ireland, the result has been depressed by a
small reduction in profits from operating divisions, by an
increase in Head Office overheads, and by a decrease in
both profit on foreign exchange and other income.
The improved profitability in Asia – which is primarily
Japan – mainly resulted from a reduction in depreciation,
old technology photobooths having been fully
depreciated by 30 April 2004.
As the table below indicates, the 7.3% increase in Group
turnover was the net of a small decrease in Vending and
a 24.8% increase in Manufacturing. Vending accounted
for 58% (2004: 64%) of Group turnover.
Although the Board believes that detailed disclosure of
the results of the individual activities could be prejudicial
to the Group’s commercial interests, certain trends are
commented on below.
Vending
The Vending business comprises the operation of
photobooths and other vending equipment. During the
year, the total number of Vending sites worldwide
increased by approximately 2,000 to 28,000, including
some 20,000 photobooths. PMI is a global company,
operating in 20 countries, with three major Vending
territories: France, the UK and Ireland, and Japan – in all
of which it continues to enjoy a leading market position.
Globally, the turnover of the Vending Division, whose
photobooth operations are mature, decreased by 2.4%. 
Its contribution to profits, however, improved and it again
generated substantial cashflow.
Geographical analysis of turnover and profit
Turnover Pre-tax profit
†
2005 2004 Variance 2005 2004 
Year to 30 April £m £m %£m £m
Continental Europe 141.5 130.8 +8.2 30.6 17.3
UK & Republic of Ireland 60.9 54.0 +12.6 0.3 2.7
Asia and Australia 30.8 31.2 –1.4 3.0 1.1
USA 2.8 3.9 –29.1 – (0.3)
236.0 219.9 +7.3 33.9 20.8
†before exceptional items
Divisional analysis of turnover
2005 2004 Variance
Year to 30 April £m £m %
Vending 138.0 141.4 –2.4
Manufacturing 98.0 78.5 +24.8
236.0 219.9 +7.3 06 Photo-Me International plc 
Annual Report 2005
Chief executive’s review
Geographical Analysis
Vending turnover in France (with 9,300 sites, including
5,900 photobooths, of which 98% are digital) increased
by 1%. The increase in the number of sites, from 8,500
last year, reflects the siting of Digital Media Kiosks.
Demand for ID photographs in France will be boosted by
the planned introduction of photo-identity on personal
National Health cards, resulting in 48 million replacement
cards from calendar 2006.
Vending turnover in the UK and Ireland (with 9,300 sites,
including 5,600 photobooths, of which 78% are digital)
was flat. The increase of 1,000 sites over the year mainly
reflects expansion in the area of kiddie rides.
Vending turnover in Japan (with 4,700 sites, including
4,600 photobooths) decreased by 5% despite a 12%
increase in the number of machines and an increase in
the proportion of digital machines from 72% to 84%.
Despite the reduction in turnover, profits in Japan have
increased. During the year, the maintenance workforce
was reduced by one-third, reducing annual costs by
£1.5m. The Japanese Government announced during the
year that ID photographs will play an integral part in the
new generation of passports to be introduced in March
2006. These two developments are expected to improve
Japan’s profitability.
Digital Media Kiosks
Following successful trials, mainly in Continental Europe,
the roll-out of Digital Media Kiosks commenced in May
2004. Digital Media Kiosks are capable of printing from
both digital cameras and digital camera phones. By the
year end, 3,000 had been manufactured; 1,600 had been
sold and 1,400 were operated by PMI, of which 1,000 in
France. T o date, results have been encouraging.
The manufacture in China of thermal (i.e. dry process)
Digital Media Kiosks commenced in May 2005 and by 
31 December 2005 it is planned that 5,000 of these will
be in operation or sold. The move of production to China
reduces the cost of Digital Media Kiosks significantly
whilst improving a number of features.
Manufacturing
Manufacturing turnover primarily derives from the 
sale to third parties of photo-processing equipment
manufactured by PMI or, increasingly, by sub-contractors
located in low cost territories. PMI has a unique and
comprehensive range covering all market segments, 
from wholesale labs, via professional and retail labs, to
end-consumer vending kiosks. In output terms,
processing labs range from 250 to 20,000 prints per hour.
This Division increased its turnover by 24.8% in the full
year; in the second half, the increase was 40.5%.
Manufacturing contributed the bulk of the Group profit
and its increase.
Wholesale Labs
Imaging Solutions’ wholesale lab business was acquired 
in April 2003 and comfortably repaid its purchase price 
in the first year of ownership. Based near Zurich in
Switzerland, Imaging Solutions is involved in the
development, manufacture, sale and technical support 
of equipment and systems for high volume photo-
finishing laboratories (up to 20,000 prints per hour). 
In the year, Imaging Solutions increased its turnover by
16.9% to £15.9m and made another useful profit. An
increased contribution is anticipated in the current year.
Professional Labs
A substantial majority of Manufacturing turnover is
represented by sales of the DKS 15xx range of minilabs.
Their success reflects their quality, as evidenced by the
award of the DIMA minilab prize at the Photo Marketing
Association (PMA) Convention and T rade Show in
Orlando, Florida in February 2005, uniquely for a third
successive year. These minilabs have an output of 800 
to 1,500 prints an hour.
In the year, unit sales of minilabs increased by 40%. 
A significant proportion of the growth was in relation to
contracts signed in September 2004 and November 2004
with T esco, the UK’s largest retailer, and Klick, the UK’s
largest independent photo-processing retailer,
respectively. Margins benefited from the full year effect
of the move of production to PMI’s sub-contractor in
Poland, Flextronics, in January 2004. 
T rialling of PMI’s minilabs in North America continues
satisfactorily.  07 Photo-Me International plc 
Annual Report 2005
Chief executive’s review
Retail Labs
PMI’s retail lab is the DKS 900, the world’s first thermal
digital minilab, capable of printing from 250 to 1,000
prints per hour. Its compactness, reliability, ease of use
and price make it particularly suited for offering a digital
printing capability in a small retail environment.
The first deliveries of the DKS 900 were made in 
August 2004. An increased rate of sale is expected in 
the current year.
Consumer Labs
Digital Media Kiosks provide vending machine
convenience for digital camera and camera-phone
customers.
Manufacture of Digital Media Kiosks in Grenoble, France
ceased in April 2005 and commenced at a sub-contractor
in Shanghai, China in May 2005.
The digital imaging market
PMI believes that it enjoys a strong position in a
substantial and fast growing market which is developing
to its advantage:
– The installed base of digital cameras is expected shortly
to exceed that of analogue equipment;
– The installed base of camera phones is rising fast, 
as is the average of the megapixels offered, improving
the quality of photographs taken;
– Home printing is fast losing market share, for reasons
mainly of cost, quality and convenience; and
– Digital photographers are printing an increasing
proportion of the photographs that they take.
PMI is positioned optimally to exploit these trends:
– PMI benefits from a unique vending infrastructure 
of 28,000 sited machines worldwide, with related
arrangements for maintenance and cash collection. 
This network greatly facilitates the roll-out of Digital
Media Kiosks; 
– PMI is the only manufacturer globally to offer a
comprehensive digital range, covering the entire
spectrum of client needs with an outstanding and
recognised quality at realistic pricing points, for both
customers and the Group;
– PMI has only two significant competitors to its minilab
manufacturing business and only one competitor,
currently in receivership, for its wholesale lab
manufacturing business;
– PMI has two products of particular potential: the Digital
Media Kiosk, whose volume roll-out of lower cost,
Chinese-manufactured models has recently commenced,
and the next generation of DKS minilab, which is
expected to be available in the middle of calendar 2006;
and
– PMI, with its long track record of technical innovation,
has the capability to develop further market-leading
products.
Strategic objectives
PMI has reached a stepping-stone: financially, with its 
net cash balance and strong cash generation, and
commercially, with its extensive Vending network,
principally imaging-based, and proven and
comprehensive digital imaging manufacturing range.
PMI intends to use its financial strength to grow
organically and through acquisitions. 
In Vending, PMI intends to leverage its infrastructure and
extend its product range beyond photobooths, increasing 
its relevance to key site owners.
In Manufacturing, PMI intends to strengthen its footprint
and commercial network with a view to obtaining a
substantial and rewarding share of the world market for
digital photo-processing equipment. 
Serge Crasnianski
Chief Executive Officer 08 Photo-Me International plc 
Annual Report 2005
Vending
PMI, through its wholly-owned subsidiary, Nippon Auto-
Photo K.K., has been successfully operating in Japan for
over 43 years. Throughout this period, it has been the
market leader in the coin-operated photobooth market.
The 4,600 photobooths operated by Nippon Auto-
Photo throughout Japan are used year after year by 
many millions of customers who prefer our technology
and photographic quality to those of our Japanese
competitors.
Nippon Auto-Photo will increase the number of
photobooths it operates to more than 6,000 within 
the next two years.
Our thinking
p 09 Photo-Me International plc 
Annual Report 2005
Vending
Over the last two years, Nippon Auto-Photo has been
assembling its new ND30 and ND50 photobooths in
Japan, making good use of PMI’s technology and
manufacturing expertise and taking advantage of the
fact that the main components are developed and
manufactured by leading Japanese companies.
The ND30 and ND50 photobooths have a printing speed
of 19 seconds (the fastest on the market) and offer four
different sizes of ID photographs, an exciting range of
fun photographs and, in the near future, printing from
digital cameras and camera phones.
is releasing the potential in Japan 10 Photo-Me International plc 
Annual Report 2005
Vending
Our UK aim
p
PMI, with its ever-evolving and ever-expanding range of
equipment, is able to meet the most demanding needs.
In the UK, PMI is often viewed as a one-stop solution for
retailers’ vending product requirements.
Our long term experience of working with our 
site-owners, our nationwide coverage and our advanced
communications and service support systems, combine 
to ensure that our equipment operates at maximum
efficiency. 11 Photo-Me International plc 
Annual Report 2005
Vending
is to broaden our position 
in the marketplace
Building on our position as the number one operator 
of photobooths, PMI’s intentions are to also establish
itself as the market leader in the operation of both 
digital photo printing kiosks and children’s rides. Offering the only stand-alone digital media kiosk 
vending equipment, PMI is well positioned to 
consolidate its position in the rapidly growing digital
photo-printing market.
1,400 Digital Media Kiosks were operated by the 
Group by April 2005. 1,000 of these are located in 
France and have generated encouraging revenues.
12 Photo-Me International plc 
Annual Report 2005
Vending
Our digital technology
p The latest range of Digital Media Kiosks will be the main
driver behind expansion of the Group’s worldwide
Vending operations.
5,000 of the second-generation Digital Media Kiosks are
to be supplied for operation by the Group, or for sale, by
December 2005.
13 Photo-Me International plc 
Annual Report 2005
Vending
is facilitating future growth 14 Photo-Me International plc 
Annual Report 2005
Manufacturing
Our equipment
p
Minilabs with digital capabilities are in demand as
customers realise the quality and convenience of having
their digital images printed as “real” photographs.
This demand has fuelled the growth in the Manufacturing
division, as major supermarkets such as T esco and large
independents like Klick start to see real growth in their
photographic print business after the recent years of
declining film sales. 15 Photo-Me International plc 
Annual Report 2005
Manufacturing
is making inroads in the high street
The profile of the digital camera user has also seen some
changes in recent years, with the main user now being
the female within the family. This market segment is more
likely to use conventional methods of printing their
photos, which in turn, has lead to an increase in digital
prints purchased at “high street” processors. The last year
has seen a 300% increase in digital photos printed at
retail outlets compared to only a 37% increase in digital
photos printed at home.
The high street is not, however, just about minilabs.
Kiosks that act as the interface between the customer
and the minilab allow the customer to select which
images to print and their size, and can even turn them 
into fun gifts such as calendars and greetings cards. 16 Photo-Me International plc 
Annual Report 2005
Manufacturing
Our R&Dp
Research and Development is the “cornerstone” from
which the Group’s success has been built.  Every year,
more than 7% of Manufacturing turnover is devoted 
to R&D.
Comprising more than 80 engineers and technicians who
are at the forefront of a complex mix of technologies,
including optics, digital, photographic film and chemistry,
software and hardware,  the R&D team has kept the
Group at the cutting edge of innovation. 17 Photo-Me International plc 
Annual Report 2005
Manufacturing
is consistently producing results
Constant development and improvement of our
technology has enabled us to maintain a “winning”
position in this competitive industry.
This achievement has been recognised by the industry, in
the form of the DIMA award. This award is presented by
the Photo Marketing Association at its annual show in the
USA, where all manufacturers are judged anonymously by
a panel of experts; looking at print criteria such as flesh
tones, saturation and image detail. PMI is proud to be 
the winner of this prestigious award for the past three
consecutive years – a record never before achieved by 
a minilab manufacturer. 18 Photo-Me International plc 
Annual Report 2005
Manufacturing
Our progress
p
Our photo processing equipment ranges from our fastest
minilab, which produces 1,500 prints per hour, to our
wholesale labs, which work at 20,000 prints per hour, 
and more. This past year has seen the introduction of our
new fastPrint 20 which outputs at over 20,000 images
per hour at a high resolution of 300 dpi. 19 Photo-Me International plc 
Annual Report 2005
Manufacturing
is keeping our machines the fastest
f fastScan 20
Capable of processing more than 22,000 images 
per hour, the fastScan 20 is the world’s fastest digital
scanner of 35mm and APS films.
f fastPrint 20 
Generating high quality colour prints at speeds in 
excess of 20,000 per hour, the fastPrint 20 is one 
of the fastest digital printers in the world. 20 Photo-Me International plc 
Annual Report 2005
Financial review
“Our main target for future years is to use the strength
of the balance sheet for expansion, generating
sustained improvement in shareholder value.”
Financial review
p 21 Photo-Me International plc 
Annual Report 2005
Profit & loss 
The profit and loss account for the year to 30 April 2005 may be summarised as follows:
2005 2004 Change
Turnover (£m) 236.0 219.9 +7.3%
EBITDA (£m)† 58.9 52.1 +12.9%
Operating profit (£m)† 35.8 22.8 +57.2%
PBT (£m)† 34.5 21.3 +62.0%
Basic earnings per share (p)† 6.28 4.06 +54.7%
Dividends per share (p) 2.00 1.00 +100.0%
† excluding exceptional items and, where appropriate, goodwill amortisation
The turnover figure, up 7.3% on the previous year, was a record.
Demonstrating the usual strength of PMI’s cash generation, EBITDA, before exceptional items, was £58.9m (2004:
£52.1m). This represents 25.0% of turnover – a high proportion.
Adjusted operating profit increased by 57.2% to £35.8m (2004: £22.8m). “ Adjusted” excludes an exceptional charge 
(in connection with restructuring in Japan) of £0.8m (2004: exceptional credit of £0.4m) and a goodwill amortisation
charge of £0.7m (2004: £0.5m). The adjusted operating margin increased to 15.2% (2004: 10.4%).
The net interest charge reduced to £1.3m (2004: £1.5m), reflecting reduced average indebtedness. The net interest
charge was covered 46 times (2004: 34 times) by EBITDA and 27 times (2004: 15 times) by profit before interest and
tax. The average interest rate was 5.7% (2004: 4.6%) and the average gross debt was £29.5m (2004: £36.9m).
Adjusted pre-tax profit advanced by 62.0% to £34.5m (2004: £21.3m).
Adjusted EPS were 54.7% higher at 6.28p (2004: 4.06p), reflecting an increased effective tax rate of 32.6% 
(2004: 28.5%).
The reported figures are an operating profit of £34.3m (2004: £22.3m), up 53.9%, a pre-tax profit of £33.0m 
(2004: £21.1m), up 56.4%, and EPS of 5.96p (2004: 4.01p), up 48.6%. 
On both adjusted and reported bases, the pre-tax profit was a record by a wide margin.
The adjusted pre-tax profit in the second half (traditionally, the weaker half of the year for Vending) of £16.2m 
compared with £6.3m in 2004 and a pre-tax loss of £3.3m in 2003, reflecting in large part the increased importance 
of Manufacturing. 
Net assets 
The Group balance sheet further strengthened.  At the year end, shareholders’ funds had increased by 20.7% to 
£83.5m  (2004: £69.1m), whilst shareholders’ funds less intangible assets totalled £59.2m (2004: £47.7m). 
The largest individual asset category remains fixed assets. The £96.4m of fixed assets can be analysed as to £71.9m
tangible assets, £24.2m intangible assets, and £0.3m investments. T angible assets include £57.9m of operating
equipment, notably £41.0m of photobooths and £11.1m of Digital Media Kiosks. An impairment review has been
undertaken as at 30 April 2005 in respect of intangible and tangible fixed assets. No adjustment to the carrying value 
of such assets was required.
Current assets increased to £99.8m (2004: £87.4m). They are represented by, in order of value, debtors, stocks, cash at
bank and in hand, and investments and short-term deposits. The principal reason for the increase in current assets is the
increase in debtors to £42.7m from £32.3m, which reflects the increase in Manufacturing turnover towards the end of
the year.
Cash and borrowings 
The net cash balance rose to £4.1m (2004: £2.9m), after capital expenditure and financial investment of £34.5m 
(2004: £21.0m).  This was principally in the following areas:  Digital Media Kiosks (£12.1m), photobooths (£10.9m), the
purchase of kiddie ride activities which leverage off PMI’s UK infrastructure (£2.2m), and the acquisition of the 30.3%
minority interest in PMI’s German subsidiary, Fotofix-Schnellphotoautomaten GmbH (£2.5m).
The year end net cash of £4.1m compares with net cash of £2.9m at 30 April 2004, net debt of £33.4m at 30 April 2003
and net debt of £51.4m at 30 April 2002. This remarkable turnaround reflects the cash-generative nature of the Vending
business, the improved Manufacturing result in the last two years, and the receipt of a payment on account from the
Group’s insurers in respect of a claim for the Bookham fire of 22 December 2004.
Financial review 22 Photo-Me International plc 
Annual Report 2005
Financial review
Funding and treasury policy 
The £1.2m improvement in net cash is explained in the following summarised cash flow statement:
2005 2004
£m £m
Opening net cash/(debt) 2.9 (33.4)
Gross cash inflow 58.3 52.8
Working capital movement (6.5) 5.9
Returns on investments and servicing of finance (1.3) (1.6)
Tax (5.9) (1.1)
Capital expenditure and financial investment (34.5) (21.0)
Acquisitions and disposals (2.5) (0.2)
Dividends (6.5) –
Other movements – net 0.1 1.5
Closing net cash 4.1 2.9
The Group’s funding policy is to maintain a timely flow of funds to meet investment requirements. The Board regularly
reviews the cash requirements of the Group and sets guidelines and policy, which are then monitored and managed by
the Finance and T reasury Committees. 
The Group’s principal financial instruments comprise bank loans, finance leases and overdrafts. These instruments are
used to raise finance for the Group’s operations and to cover capital expenditure and working capital requirements. 
Details of the financial instruments are shown in note 16 to the accounts, including currency and interest rate analysis.
The Group takes the view (as permitted by FRS13) that short-term debtors and creditors are not financial instruments
that play a significant medium to long-term role in the financial risk profile of the Group. They are excluded from the 
FRS13 disclosures, other than currency analysis. 
The Bookham fire
On 22 December 2004, the Group’s 62,000 sq.ft. warehouse and workshop at Bookham, Surrey were destroyed by 
fire, together with their contents. These principally comprised minilabs for resale, vending equipment being refurbished,
spare parts and consumables. The adjacent Group Head Office building was undamaged by the fire.
The Group successfully minimised the disruption caused to its business.
A substantial payment on account was received during the year from the Group’s insurers, and the Board is confident
that the risk was fully covered.  Furthermore, since the insurance cover is based on replacement cost, a material
accounting surplus could arise.  However, as parts of the claim will not be finalised for some months, no gain has been
recognised in these accounts.
Financial risks
The Group is exposed to a variety of financial risks, including changes in foreign exchange rates and interest rates. The
Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential risks for the Group. The Board reviews and agrees policies for managing risks.
Foreign exchange risk
The Group has a number of overseas subsidiaries whose functional currency is not Sterling, being principally Euro, Swiss
Francs and Japanese Y en.  As a result, changes in exchange rates can impact on the net assets of the Group’s balance
sheet. Borrowings by subsidiaries in local currency help to mitigate the effects of exchange movements.  Individual
subsidiaries are exposed to exchange rate movements as a result of selling or purchasing in foreign currencies. Subject to
approval of the Risk Management Committee, hedges may be taken out to cover forward foreign exchange contracts to
assist in managing the exchange risk from trading. During the year under review, hedging commenced and this policy is
likely to continue in the current year. Generally, the amounts hedged are short term (less than one year) and are
monitored for their effectiveness.  23 Photo-Me International plc 
Annual Report 2005
Financial review
Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in interest rates. The Group
finances its operations through a mixture of retained profit and bank borrowings. The Group borrows in the desired
currencies at both fixed and floating rates of interest. The Group regularly monitors the possibility of switching from
floating to fixed rate and from fixed to floating. It also monitors the possibility of using cap and floor arrangements.
The Group may also take out derivative contracts to limit interest rate exposure and this activity commenced during
the year.  At the year end, 13% of the Group’s borrowings were at fixed rates (2004: 19%).
Liquidity risk  
The Group’s objective is to ensure adequate facilities are available and to maintain a balance between continuity of
funding and flexibility through use of overdrafts, bank loans and finance leases. At 30 April 2005, £34.1m  (2004:
£35.0m) of undrawn committed facilities were available. At 30 April 2005, 16.1% (2004: 15.3%) of total borrowings
will mature after two years. Surplus funds are placed in bank deposit accounts and other investments with high credit
ratings. 
International Financial Reporting Standards
Financial statements for EU quoted companies for accounting periods beginning on or after 1 January 2005 have to
be prepared in accordance with International Financial Reporting Standards (IFRS). PMI will thus publish accounts for
the year ended 30 April 2006 in accordance with IFRS. The interim results to 31 October 2005 will be the first reported
in line with IFRS. The accounts for the year ended 30 April 2005 will be the last to be produced under UK Generally
Accepted Accounting Practice (UK GAAP).
The International Accounting Standards Board (IASB) finalised in early 2004 the standards to be applied for IFRS
conversion for 2005. Since then, new standards and amendments have been issued. These standards have to be
endorsed by the EU before they can be applied.  Most standards have been endorsed and the process is continuing. 
PMI’s IFRS conversion project is on schedule. The IFRS conversion project team has examined the implementation
aspects, including examination of changes in accounting policies, the presentation of the Group’s results, system
changes and wider business issues arising from the changes. The Group’s IFRS project conversion team will be shortly
finalising the restatement of the results for the year ended 30 April 2005. 
It is our current view that IFRS will have an impact in the following principal areas: expensing of the fair value of share
options, accounting for goodwill acquired in business combinations, and the translation of results at average exchange
rates. The net impact on both profits and the balance sheet is not expected to be significant.
Financial objective
Having achieved a healthy financial structure, our main target for future years is to use the strength of the balance
sheet for expansion, generating sustained improvement in shareholder value.
Jean-Luc Peurois
Group Finance Director 24 Photo-Me International plc 
Annual Report 2005
Board of directors and secretary
Board of directors and secretary
1 Vernon Sankey
Non-executive Chairman
Age 56. Elected to the Board in 2000. Appointed
Chairman on 1 February 2005. The Deputy Chairman 
and senior independent non-executive director until 
1 February 2005. Chairman of the Remuneration and
Nomination Committees and a member of the Audit
Committee. Formerly Chief Executive of Reckitt &
Colman plc, Chairman of Thomson T ravel plc and
Chairman of Gala plc. Currently a director of Pearson
Group plc, Zurich Financial Services AG, T aylor Woodrow
plc, Cofra AG, Vividas Group plc and several other
companies.
2 Serge Crasnianski
Chief Executive Officer
Age 62. Founded KIS in 1963. Elected to the Board 
of Photo-Me International plc in 1990. Chief Executive
Officer since 1998. Member of the Nomination
Committee.
3 Jean-Luc Peurois 
Group Finance Director
Age 47. Joined KIS in 1985. Elected to the Board 
of Photo-Me International plc in 1994. Appointed 
Group Finance Director in 2000. 
4 Riccardo Costi
Executive director
Age 60. Joined the Group in 1969. Elected to the Board
in 1992. Executive director of the Group’s Japanese
subsidiary, Nippon Auto-Photo K.K.
5 François Giuntini 
Executive director
Age 58. Joined KIS in 1986. Elected to the Board 
of Photo-Me International plc in 1994. Group General
Counsel. Secretary General of group companies 
in France. Responsible for human resources, risk
management and health, safety and environmental
matters.
6 Dan David
Non-executive director
Age 76. Joined the Group in 1961. Elected to the Board
in 1968. Executive Chairman from 1992, non-executive
Chairman from 1998 until 1 February 2005. Member 
of the Nomination Committee. Director of GLG Global
Convertible Fund plc and a member of the Board of
Governors of T el Aviv University. Founder of the
internationally recognised Dan David Prize.
7 Sir Patrick McNair-Wilson
Non-executive director
Age 76. Elected to the Board in 1996. Member of the
Audit, Remuneration and Nomination Committees.
Served as a Member of Parliament for West Lewisham
1964-1966 and New Forest 1968-1997.
8 Hugo Swire
Non-executive director
Age 45. Elected to the Board on 1 June 2005. Member
of Parliament for East Devon since 2001 and the Shadow
Minister for the Arts. A consultant to Aon Limited.
Previously served in the Armed Forces, was the first Head
of Development at the National Gallery and involved in
business development for Sothebys, London.
9 Francis Wahl
Non-executive director
Age 57. Elected to the Board in 1990. Chairman of the
Audit Committee and a member of the Remuneration
Committee. Director of a number of European financial
institutions.
10 Robert E Lowes 
Company Secretary
Age 54. Joined the Group in 1981. Appointed Company
Secretary in 1994. 25 Photo-Me International plc 
Annual Report 2005
Board of directors and secretary
123
4 5
678
910 The directors submit to the shareholders their report and the audited Group accounts of Photo-Me International plc for the year
ended 30 April 2005.
Principal activities
The principal activities of the Group continue to be the manufacture, sale and operation of coin-operated automatic photobooths
for identification and fun purposes, copiers, express print services and children’s rides together with the manufacture (including by
sub-contractors) and sale of photo-processing equipment (mainly minilabs and central processing laboratories), throughout the
world. The Group’s activities are increasingly based on digital photographic applications.
The principal subsidiary and associated undertakings of the Group are shown on page 63.
Results and dividends
The results for the year are set out in the Group profit and loss account on page 36.
The directors recommend a final dividend of 1.2p per Ordinary share which, if approved at the Annual General Meeting, will be paid
on 2 November 2005 to shareholders on the register at 7 October 2005 (ex-dividend date: 5 October 2005). This, together with the
interim dividend of 0.8p per share paid on 8 April 2005, makes a total dividend for the year of 2.0p per Ordinary share.
Review of the business and future developments
The Chairman’s statement, the Chief Executive’s review and the Financial review, all of which form part of this Report, describe the
activities of the business during the financial year, recent events and the outlook for the future.
Market value of land and buildings
The directors consider that the market value of the Group’s interest in land and buildings exceeds, by around 50%, its aggregate net
book value of £9,264,000 that is included in these accounts.
Research and development
The Group is committed to its research and development programme in order to maintain its position as a market leader. 
The expenditure incurred on the development of new vending equipment and photo-processing equipment is shown in Notes 
3 and 9 to the accounts.
Employees
The Group’s loyal and skilled workforce is essential for its future prosperity. Where appropriate, employees are provided with
information on matters of interest and concern to them. The Group encourages contact and interaction between all members of
staff at all levels.
The equal opportunities policy followed by the Group gives full and fair consideration to applicants for employment who are
disabled, for continuing the employment of those who become disabled and for training and developing disabled employees.
The Company continues to support Investors in People, thus demonstrating its commitment to the ongoing development of its staff
at every level of the organisation within the UK.
Health, safety, the environment and social responsibilities
Photo-Me International recognises its responsibilities to the environment and believes that health, safety and environmental (‘HSE’)
issues are integral and important components of best practice in business management.
The Group’s commitment to HSE matters is demonstrated through the appointment of François Giuntini as the responsible director
and through the activities of committees and advisers. This structure establishes HSE objectives, reviews significant issues,
recommends policy and provides strategy and direction. National training centres have been set up to provide effective training of
employees, including HSE awareness. The involvement of the whole workforce in HSE procedures is actively encouraged.
The Group’s environmental policies include:
– the management of operations to meet relevant legal regulations;
– the minimisation of energy, road transport and waste;
– the minimisation of exposure to any potential environmental liabilities.
The most significant environmental impacts by the Group have been reduced by:
– the safe destruction of all waste;
– using diesel fuel in most company vehicles;
– reviewing transport-related impacts by improved route planning;
– elimination of the use of halons for fire extinguishing;
– increased use of electronic communications to reduce paper consumption.
The Group’s social responsibilities include the sponsorship of VALIDATE UK, a voluntary proof of age scheme for young people 
aged 12 years and over. One of the aims of the scheme is to reduce under-age sales of age-restricted products and, in so doing, 
it helps to control many health and social problems associated with early addiction to alcohol, smoking, solvents and gambling.
Working with Trading Standards Officers, Health Professionals, Community Safety Officers and the Police, the scheme has been
awarded PASS accreditation (‘Proof of Age Standards Scheme’), the UK Government standard for proof of age. VALIDATE UK 
now operates in 73 local authorities and various police authorities across the United Kingdom. More information is available at
www.validateuk.co.uk or info@validateuk.co.uk
Report of the directors
26 Photo-Me International plc 
Annual Report 2005
Report of the directors Board of directors and their interests
Details of the present directors of the Company can be found on page 24, together with a brief biography of each director. Each of
them served on the Board throughout the year under review with the exception of Hugo Swire who was appointed on 
1 June 2005. In addition, David Scotland served as a director until his resignation on 1 June 2005.
As a newly appointed director, Hugo Swire will stand for re-election at the Annual General Meeting in accordance with the
Company’s Articles of Association. The directors retiring by rotation at the Annual General Meeting are Riccardo Costi, Sir Patrick
McNair-Wilson and Francis Wahl. Riccardo Costi and Francis Wahl offer themselves for re-election.
Details of the directors’ contracts, emoluments and share interests are given in the Remuneration report on pages 31 to 34.
Substantial shareholders
On 20 June 2005 the following shareholders had a notifiable interest in the Ordinary shares of the Company:
Number of % of issued
Ordinary Ordinary
shares share capital
Serge Crasnianski (director) 71,143,070 19.53%
Fidelity International Ltd. 54,637,855 14.99%
The Capital Group Companies, Inc. 17,400,000 4.78%
Morgan Stanley Securities Ltd. 13,993,813 3.84%
The Goldman Sachs Group, Inc. 11,056,462 3.04%
Authority to purchase shares
The Company was given authority at the 2004 Annual General Meeting to make market purchases of up to 18,212,618 of its own
Ordinary shares (representing 5% of the shares in issue) at a maximum price per share of not more than 5% above the market value.
This authority will expire on the earlier of 4 May 2006 or the conclusion of the next Annual General Meeting. 
No market purchases of Ordinary shares were made by the Company in the year to 30 April 2005.
Although the Company has no current intention to make any market purchases of its own shares, approval will be sought from
shareholders at the 2005 Annual General Meeting to renew and extend the authority up to 10% of the shares in issue, being
36,428,912 shares.
Related party transactions
Details of related party transactions are set out in Note 26 to the accounts.
Creditor payment policy
The Company does not follow a universal code which deals specifically with payments to suppliers but, where appropriate, the
Company’s practice is to:
(a) agree the terms of payment at the start of business with the supplier;
(b) ensure that those suppliers are made aware of the terms of payment;
(c) pay in accordance with its contractual and other legal obligations.
United Kingdom subsidiaries follow the same policy and overseas subsidiaries are encouraged to adopt similar policies, by applying
local best practices. The Company’s average creditor payment period at 30 April 2005 was 57 days.
Going concern
The directors consider that the Company and the Group have adequate resources to remain in operation for the foreseeable future.
Accordingly the directors continue to operate the going concern basis in preparing the accounts.
Auditors
The auditors, Ernst & Young LLP, have expressed their willingness to continue in office. It is intended to move resolutions at the
Annual General Meeting to re-appoint them and authorise the directors to fix their remuneration.
By order of the Board
Robert E Lowes
Company Secretary
Church Road
Bookham
Surrey KT23 3EU
20 June 2005
27 Photo-Me International plc 
Annual Report 2005
Report of the directors This statement describes how the Company has applied the principles and complies with the provisions of the revised Combined
Code on Corporate Governance (adopted by the Financial Reporting Council in July 2003) which have been incorporated in the
Listing Rules of the Financial Services Authority. 
The Financial Services Authority requires listed companies to disclose, in relation to Section 1 of the Combined Code, how they have
applied its principles and whether they have complied with its provisions throughout the financial year.
Statement of application of the Principles of Good Governance
The Company has applied the Principles of Good Governance as set out in Section 1 of the Combined Code by complying with the
Code of Best Practice as reported above. Further explanations of how the Principles have been applied are set out below and, in
connection with directors’ service contracts, in the Remuneration report.
The Board
For the period under review and to date, the Board comprised the non-executive Chairman, the Chief Executive Officer, three other
executive directors and a further four non-executive directors. Dan David served as Chairman until 1 February 2005 when he retired
from this position, then being appointed Life President and continuing as a non-executive director. Vernon Sankey, previously
Deputy Chairman, was appointed Chairman on that date. David Scotland, a non-executive director, resigned from the Board on 
1 June 2005 and was replaced by Hugo Swire who was appointed with effect from that date.
The Chairman has the overall responsibility for managing the Board. The Chief Executive Officer has responsibilities for strategy,
operations and results. Clear division of responsibility exists such that no one individual or group of individuals can dominate the
Board’s decision-making process.
The Company readily acknowledges that certain non-executive directors (Dan David, Sir Patrick McNair-Wilson and Francis Wahl)
are considered by the Combined Code not to be ‘independent’, due to a previous executive position (Dan David), their business
relationships with the Group (Dan David and Sir Patrick McNair-Wilson) or their having served on the Board for more than nine
years (Dan David and Francis Wahl). However, the Company does consider that Vernon Sankey (until his appointment as Chairman),
David Scotland(until his resignation) and Hugo Swire (appointed on David Scotland’s resignation) are independent non-executives.
Thus, the Company has had, until Vernon Sankey’s appointment as Chairman, two independent non-executive directors and has
three non-executive directors who are not independent, as defined by the Code. Despite this apparent departure from the Code, the
Board has recognised the contribution made by each of these non-independent non-executive directors which, in most instances,
has been of greater benefit to the Group and to all shareholders due to the very factors which are deemed to make a director non-
independent – including their depth of knowledge of the unique business of the Group. The Board also believes that these directors
are independent in character and judgement.
The senior independent non-executive director was Vernon Sankey until his appointment as Chairman on 1 February 2005, when
David Scotland assumed the role. Following the resignation of David Scotland on 1 June 2005 no senior independent non-executive
director has been selected, pending the appointment of additional independent non-executive directors.
Sir Patrick McNair-Wilson will be retiring from the Board at the 2005 Annual General Meeting. At around that time it is intended
that additional independent non-executive directors will be appointed, at least one of whom will have recent and relevant financial
experience.
In the event of the appointment of a new director, the Company would ordinarily appoint someone who, it believes, has sufficient
knowledge and experience to fulfil the duties of a director. If this were not the case, an appropriate training course would be
provided. An appropriate induction programme is undertaken for all newly-appointed directors. All directors have access to the
advice and services of the Company Secretary. Any director, wishing to do so in furtherance of his duties, may take independent
advice at the Company’s expense. All directors are required to stand for re-election, at a maximum of every three years and newly
appointed directors are subject to election by shareholders at the first AGM after their appointment. Apart from this requirement,
non-executive directors are not appointed for specified terms.
The Chief Executive Officer and the Chairman review the performance of each executive director. The Chairman reviews the
performance of the Chief Executive and each non-executive director. Following the recent appointment of a new Chairman, his
effectiveness will be assessed in future years by the senior independent non-executive director in a meeting with other non-
executive directors, without the Chairman being present. A formalised process to review the effectiveness of the Board and its
Committees is due to be introduced within the coming year.
The Chairman meets with non-executive directors on an informal basis. Such meetings will be formalised, going forward.
The Board usually meets five or six times a year and ad-hoc meetings are convened to deal with urgent matters. The Board has a
formal schedule of matters reserved to it for decision. These include approval of the financial statements, dividend policy, major
acquisitions and disposals and other transactions outside delegated limits, significant changes in accounting policies, the
constitution of Board committees, risk management and corporate governance policy. 
The Board has delegated various matters to Committees, as detailed below. These Committees of the Board also meet regularly and
deal with specific aspects of the management of the Company. The Board has delegated authority to the Committees and they have
defined terms of reference which are available on request. Decision-making relating to operational matters is delegated to senior
management.
Corporate governance
28 Photo-Me International plc 
Annual Report 2005
Corporate governance Board and Committee papers are circulated in advance of each meeting and are supplemented by reports and presentations to
ensure that Board members are kept fully informed.
The Board had 5 scheduled meetings during this financial year. The attendance of directors at those meetings and meetings of
Board Committees is set out below.
Board Audit Remuneration Nomination 
Meetings Committee Committee Committee
No. of meetings held 5211
Director
V Sankey 5 2 1 1
S Crasnianski 5 N/A N/A 1
R Costi 4 N/A N/A N/A
F Giuntini 4 N/A N/A N/A
J L Peurois 5 N/A N/A N/A
D David 4 N/A N/A 1
P McNair-Wilson 5 2 1 1
D Scotland 4 0 0 N/A
F Wahl 3 1 1 N/A
The Company has arranged appropriate insurance cover in respect of legal action against its directors.
Board Committees
The Audit Committee
The Audit Committee consists entirely of non-executive directors, current membership being detailed on page 24; in addition David
Scotland served on the Committee until his resignation as a director. Whilst no member of the Committee has “recent and relevant
financial experience” as required by the Code, the members do have a broad range of experience. As noted above, it is intended to
appoint a new non-executive director who will possess the relevant qualities. Meetings are normally held twice per year. The Group
Finance Director, representatives of the external auditors and the Internal Audit Manager are generally invited to attend meetings.
The minutes of the meetings are circulated to all directors. 
The Committee meets with the external auditors, without executive directors present, at least once a year. The Committee reviews
the Group’s accounting and financial reporting practices, the reports of the internal and external auditors and compliance with
policies, procedures and applicable legislation. In addition, the Committee monitors the effectiveness of both the external and
internal audit functions and reviews the Group’s internal financial control and risk management procedures. It also sets a policy for
safeguarding the independence of the external auditors and reviews their work outside of the audit itself.
The Audit Committee has not established a procedure by which staff may raise concerns about possible impropriorities in matters of
financial reporting or other matters. This matter will be addressed in the near future.
The Remuneration Committee
The Remuneration Committee comprises only non-executive directors, current members being detailed on page 24; in addition
David Scotland served on the Committee until his resignation as a director. The Committee meets at least once per year. The
Committee makes recommendations to the full Board in respect of the Group’s remuneration policy. The Committee also keeps
under review the remuneration of the Group’s executive directors and senior executives to ensure that they are rewarded fairly for
their contribution. The Committee also makes awards under the Executive Share Option Scheme. 
The Remuneration report on pages 31 to 34 provides details of how the Committee applies the Directors’ remuneration principles of
the Combined Code and explains the area of non-compliance with the Code in respect of the notice periods of some overseas
service contracts.
The Nomination Committee
The Nomination Committee now consists of Vernon Sankey (Committee Chairman), Serge Crasnianski, Sir Patrick McNair-Wilson and
Dan David. Dan David served as Committee Chairman whilst he was Chairman of the Company. The Committee, which meets as
required, makes recommendations to the Board on the appointment of new directors.
Having served for four years as Deputy Chairman, the Nomination Committee were unanimous in their recommendation of Vernon
Sankey as Chairman of the Company upon the retirement of Dan David and did not consider it necessary to seek external
candidates. Vernon Sankey did not participate in this process.
The appointment of Hugo Swire was made following a personal introduction to the Committee Chairman, with the Committee taking
full account of his past experience and personal achievements.
It is the Committee’s intention, in respect of future appointments of independent non-executive directors, to prepare a description
of the role and the capabilities required and to utilise external search consultants.
29 Photo-Me International plc 
Annual Report 2005
Corporate governance Corporate governance (continued)
Relations with shareholders
The Chief Executive Officer and Group Finance Director have regular meetings with the Company’s major institutional shareholders.
The Chairman also meets with major shareholders and has contact with them, as and when required. The senior non-executive
director (Vernon Sankey) met with shareholders during the period. The senior non-executive director and, where appropriate, other
non-executive directors, are made available to meet with major shareholders, on request. Any pertinent feedback arising from such
meetings is reported to the Board at its regular meetings.
Private investors are encouraged to attend the Annual General Meeting and have the opportunity to question the Board. 
All members of the Board usually attend the Annual General Meeting. The notice of the meeting is sent to shareholders at least 
20 days before the Meeting. Shareholders are given the opportunity to vote on each separate issue. The number of proxy votes
lodged are announced after the vote on a show of hands for each resolution.
Internal control
The Board is ultimately responsible for the Group’s system of internal control and risk management, and for reviewing its
effectiveness. This is effected by receiving reports from the Audit Committee following its review. The Board is satisfied that such
systems have operated adequately throughout the period.
The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives. 
Such a system can, however, provide only reasonable and not absolute assurance against material misstatement or loss.
The Group has in place processes for identifying, evaluating and managing the significant risks which are applicable to the business.
The Board regularly reviews these processes. The procedures necessary to follow the Turnbull Guidance have applied during the year
under review and to the date of this Report.
The Board has appointed François Giuntini as the director with specific responsibility for co-ordinating risk management and for
reporting key risks and the risk management process to the Board. Executive managers of individual Group companies are
responsible for the identification, evaluation and management of the key risks applicable to their areas of responsibility. The risks
are assessed on a regular basis.
The managers of Group companies are aware of their responsibility to operate systems of internal control which are effective and
efficient for their businesses, to provide reliable financial information and to ensure compliance with local laws and regulations.
The Group has a comprehensive budgeting system with actual results being reported monthly and variances reviewed.
The effectiveness of the Group’s system of internal control is monitored by the Group Internal Audit Manager who reports directly to
the Audit Committee. A programme of visits to review operations in many Group companies has been undertaken in 2004–05.
The Audit Committee reviews reports from internal and external auditors and reports its conclusions to the Board.
Statement of compliance with the Combined Code 
The Company has complied throughout the year with the provisions of the Combined Code with the exception of those matters
which have been identified and explained above, being:
– a majority of non-executive directors were not independent, as defined by the Code;
– the Remuneration and Audit Committees do not comprise only independent non-executive directors and the Nomination
Committee does not contain a majority of independent non-executive directors, there is no member of the Audit Committee with
recent and relevant financial experience;
– non-executive directors are not appointed for a specified term;
– there is no formal procedure in place to review board effectiveness;
– the terms of reference of the Audit Committee need to be updated in order to comply with the new Code;
– there is no “whistle-blowing” procedure in place;
– some existing overseas service contracts for directors contain notice periods of more than one year.
30 Photo-Me International plc 
Annual Report 2005
Corporate governance The Remuneration Committee
In line with the requirements of the Combined Code, the Committee operates within agreed terms of reference and has responsibility
for determining the remuneration of the executive directors and the Group’s other senior executives. With the exception of the
constitution of the Remuneration Committee which, as explained below, includes two non-executive directors who are considered
by the Combined Code not to be independent, the Board confirms that the Company has complied throughout the relevant year 
with the provisions of the Combined Code relating to directors’ remuneration.
The Committee consists entirely of non-executive directors and held one meeting during the year. The directors who served on the
Committee throughout the year were as follows:
Vernon Sankey (Committee Chairman)
Sir Patrick McNair-Wilson
David Scotland
Francis Wahl 
The Board acknowledges that Sir Patrick McNair-Wilson (due to a past business relationship with the Group) and Francis Wahl
(due to length of service as a non-executive director) will not be deemed ‘independent’. However, they have, and will continue to,
apply entirely independent judgement in connection with executive remuneration issues.
The Committee is advised by New Bridge Street Consultants LLP, who have been appointed by the Committee and who advise it on
various matters relating to senior executive remuneration. New Bridge Street Consultants have provided no other services to the
Company. The Committee also received advice from Serge Crasnianski in relation to the remuneration of certain senior executives
(but not in relation to his own remuneration).
Remuneration policy for executive directors
The Committee’s remuneration policy for the executive directors is to have regard to the directors’ experience and the nature and
complexity of their work in order to provide a competitive remuneration package that attracts, retains and motivates high calibre
executives from whom first class performance is expected. The remuneration policy is also intended to be consistent with the
Company’s business objectives and shareholder interests.
In order to align the interests of shareholders and executive directors, a significant proportion of the remuneration of executive
directors is performance-related through an annual bonus plan and the grant of share options.
The remuneration packages of the executive directors comprise the following main elements:
– Basic salary
– Annual bonus
– Share options
– Pensions
– Other benefits
Basic salary
The basic salaries of the executive directors are reviewed annually by the Committee. In conducting this review, the Committee 
takes account of the terms of existing service contracts and the performance of the individual executive director concerned.
The Committee also has regard to the pay of staff and management generally within the Group and takes into consideration 
the levels of basic salary paid by other relevant companies of similar size and standing, and market levels generally.
Annual bonus
In 2003 an annual bonus scheme was introduced, whereby executive directors may receive an award of up to 50% of basic salary,
subject to the extent to which annual performance targets are met. Such targets take account of current business plans and are
based largely on pre-tax profit and other objective financial tests. A threshold performance level is set, below which no bonus 
is payable.
With effect from May 2004 the Committee increased the maximum award level to 75% of basic salary; any bonus in excess of 50%
only being paid in return for outstanding performance. 
The first bonuses under the scheme were paid in the year to 30 April 2005.
Share options
In recent past years (until February 2004), the Company issued share options under the rules of the Approved and Unapproved
Senior Staff Share Option Schemes which were introduced in 1997. These schemes were the sole share-based long-term incentive
arrangement for senior executives. Existing options granted under the Schemes can only be exercised subject to the achievement of
a performance criterion. 
At the Annual General Meeting of 4 November 2004 the 1997 Approved and Unapproved Senior Staff Share Option Schemes 
were replaced with a new Photo-Me Executive Share Option Scheme (the “Scheme”), which will operate as the sole long-term
incentive arrangement for the Company’s executive directors and senior employees and which is more reflective of current best 
and market practice. 
The main features of the new Scheme are that options may be granted over shares worth up to 150% of a participant’s salary, each
year. The vesting of options is subject to an EPS-based performance condition relating to the extent to which the Company’s EPS
for the third financial year end, following the date of grant, reaches a sliding scale of challenging EPS targets. 
Remuneration report
31 Photo-Me International plc 
Annual Report 2005
Remuneration report
Remuneration report Remuneration policy for executive directors (continued)
Share options (continued)
These absolute EPS targets are used as the Committee believes that the Company’s senior executive team should focus on
delivering substantial EPS growth over subsequent three year periods. The extent to which these targets are met will be determined
by the Committee, with the assistance of external consultants to ensure independent verification. The Committee will take advice as
to the best approach to adopt to take account of new International Financial Reporting Standards, in relation to any EPS-based
targets that are set.
As yet, no options have been issued under the new scheme.
Pensions
Executive directors with salaries paid by the Company in the UK are entitled to join the Company’s Group Stakeholder Pension Plan,
to which the Company contributes 5% of their basic UK salaries. Serge Crasnianski, François Giuntini and Jean-Luc Peurois are
members of the Plan. Company contributions at the rate of 5% of their basic UK salaries were: 
2005 2004
£ £
Serge Crasnianski 4,870 4,791
François Giuntini 960 939
Jean-Luc Peurois 3,357 3,285
9,187 9,015
Other benefits
Executive directors are provided with employment related benefits which can include a company car, private medical insurance and
life assurance.
Service agreements
The following executive directors have service contracts which are terminable by the Company on giving 12 months’ notice. 
None are appointed for a specified period. The dates of these service contracts are as follows:
Serge Crasnianski 23 October 2000
François Giuntini 23 October 2000
Jean-Luc Peurois 23 October 2000
The overseas service contracts of François Giuntini and Jean-Luc Peurois provide for notice periods of 12 and 9 months respectively
and for the payment of a liquidated amount equal to 6 and 9 months of their overseas basic salary, respectively. The provisions in
Messrs Giuntini’s and Peurois’ service contracts are consistent with local practice in France, where these executives carry out a
significant proportion of their duties. Therefore, the Committee does not consider it appropriate to alter these existing contractual
entitlements.
Riccardo Costi has no service contract with the Company, but has a contract dated 16 June 1999 with the Group’s subsidiary
company, Nippon Auto-Photo KK. This contract is not for a specified period, is terminable by the company without notice but
provides for payment of a liquidated amount equal to 18 months of basic salary. Such a provision is consistent with local practice in
Japan for a senior executive with his length of service of over 30 years. Therefore, the Committee does not consider it appropriate
to alter this existing contractual entitlement.
The Committee’s policy is that no future executive director’s service contract shall be of a fixed term nor shall be terminable on
giving more than 12 months’ notice and that such contract shall contain no provisions for the payment of liquidated damages on
termination, which the Committee considers appropriately reflects market and best practice.
Within the restrictions imposed by the relevant service contracts, the Committee will apply the principle of mitigation when
determining any payment of compensation on an executive director’s termination.
Dan David, who served as non-executive Chairman until 1 February 2005, had service contracts with the Company (dated
23 October 2000) which were subject to 6 months’ notice from either party. In accordance with his contracts Dan David was
paid at the contracted rate until 4 May 2005, in order to ensure a smooth handover to the new Chairman. On 1 February 2005
Dan David was appointed Life President of the Company and remains a non-executive director, with no service contract, on
similar terms as other non-executive directors. The only difference to other non-executive directors is that Dan David is to be 
paid an additional £1,000 per annum and will continue to benefit from private health insurance, in recognition of his position as 
Life President. 
None of the non-executive directors are appointed for a specified term and none have service contracts, although they are subject
to re-election by shareholders at least every 3 years (as are the executive directors). None of the non-executive directors will be
entitled to compensation upon termination of their involvement with the Company.
Non-executive directors’ fees
The fees of the non-executive directors are determined by the executive directors, taking into account the level of fees paid by
companies of a similar size and standing. Non-executive directors are not entitled to participate in any Group pension scheme nor
will they be granted any awards under the Company’s option schemes or annual bonus plan.
The remuneration of the Chairman is determined by the Board as a whole (excluding the Chairman) and not by the Remuneration
Committee. The Board believes that this procedure is appropriate for the Company.
32 Photo-Me International plc 
Annual Report 2005
Remuneration report
Remuneration report Appointments outside the Group
It is the Committee’s policy that, in appropriate circumstances, executive directors will be allowed to accept outside appointments.
Whether or not an executive director would be entitled to retain any related fees, will be determined on a case-by-case basis. No
such outside appointments currently exist.
Directors’ remuneration
Table 1
Details of the individual directors’ emoluments for the year are as follows:
2005 2004
Salary Bonus Benefits
(1)
Total Total
Note £ ££ £ £
Executive directors
Serge Crasnianski 2 402,308 196,052 10,428 608,788 401,725
Riccardo Costi 142,892 36,994 2,267 182,153 150,157
François Giuntini 152,315 32,728 1,236 186,279 132,148
Jean-Luc Peurois 251,418 122,612 1,236 375,266 246,510
Non-executive directors
Vernon Sankey 90,000 – – 90,000 80,000
Dan David 3,4 117,729 – 4,607 122,336 118,249
Sir Patrick McNair-Wilson 25,000 – – 25,000 25,000
Peter Ogborne 5 –– –– 12,812
David Scotland 25,000 – – 25,000 25,000
Francis Wahl 25,000 – – 25,000 25,000
Philippe Wahl 6 – – –– 10,960
1,231,662 388,386 19,774 1,639,822 1,227,561
Notes:
1. Benefits can include a company car, private medical insurance and life assurance.
2. The amounts stated above include an amount of £446,758 (2004: £292,205) paid to a third party in respect of making available the services of Serge Crasnianski to
the Company.
3. The amounts stated above include an amount of £92,378 (2004: £89,053) paid to a third party in respect of making available the services of Dan David to the
Company.
4. Dan David donated the whole of his salary and fees for the years 2004 and 2005 to a registered educational charity.
5. Peter Ogborne retired from his executive duties on 9 July 2002, becoming a non-executive director. He retired from his non-executive position on 5 November 2003.
Subsequent to his retirement from the Board until 4 November 2004, Peter Ogborne provided consultancy services to the Group, with earnings of £12,885 in the year
to 30 April 2005 (2004: £12,188).
6. Philippe Wahl retired from the Board on 8 October 2003.
Directors’ interests
Table 2
Interests in shares
According to the records kept by the Company, the directors had interests in the share capital of the Company as shown below. 
All interests shown are beneficial except for 900,000 shares of Dan David’s interests at 30 April 2005 and 20 June 2005 which are
considered to be non-beneficial. The interests in Ordinary shares at 20 June 2005 are analysed between those registered in their
own names, and those registered in other names:
20 June 2005
Note 30 April 2004 30 April 2005 Self Other Total
Riccardo Costi 123,177 123,177 123,177 – 123,177
Serge Crasnianski 1 71,143,070 71,143,070 63,750 71,079,320 71,143,070
Dan David 2,000,000 2,900,000 – 2,900,000 2,900,000
François Giuntini 407,540 407,540 407,540 – 407,540
Sir Patrick McNair-Wilson 2,400 2,400 – 2,400 2,400
Jean-Luc Peurois 207,540 207,540 207,540 – 207,540
Vernon Sankey 64,000 64,000 – 64,000 64,000
David Scotland 2 17,000 17,000 N/A N/A N/A
Hugo Swire 3 N/A N/A – ––
Francis Wahl 2,000 2,000 – 2,000 2,000
1. The interests of Serge Crasnianski include 71,079,320 shares which are owned by Tibergest Investments B.V., a company in which he has declared an interest.
2. David Scotland resigned from the Board on 1 June 2005.
3. Hugo Swire was appointed to the Board on 1 June 2005.
33 Photo-Me International plc 
Annual Report 2005
Remuneration report
Remuneration report Directors’ interests (continued)
Table 3
Interests in share options
Details of directors’ options over Ordinary shares are as follows:
Number of 
options
as at 
1 May 2004 Date
and Exercise from which
30 April 2005 price exercisable Expiry date
Riccardo Costi 175,000 74.20p 8 Sep 2003 7 Sep 2007
200,000 35.33p 10 Jan 2007 9 Jan 2011
500,000 18.33p 13 Dec 2007 12 Dec 2011
François Giuntini 125,000 74.20p 8 Sep 2003 7 Sep 2007
200,000 35.33p 10 Jan 2007 9 Jan 2011
135,000 138.50p 13 Feb 2009 12 Feb 2013
Jean-Luc Peurois 250,000 35.33p 10 Jan 2007 9 Jan 2011
750,000 18.33p 13 Dec 2007 12 Dec 2011
No other directors have been granted options over shares of the Company.
No new options were granted and no existing options were exercised or lapsed during the year to 30 April 2005 (the gains on 
the exercise of share options during the year to 30 April 2004, calculated on the difference between the exercise price and the
closing market price on the day of exercise, totalled £214,000). There have been no movements in directors’ share options since 
30 April 2005.
Each tranche of options granted to an individual was granted for a total consideration of £1. Options which are shown as being
exercisable from dates of 8 September 2003 and 10 January 2007 are subject to a performance criterion that, over a 3 year period,
the Company achieves real earnings per share growth averaging 2% a year, or more. Options shown as being exercisable from 
13 December 2007 and 13 February 2009 are subject to a performance criterion which requires real earnings per share growth
averaging 3% a year, or more, over a 3 year period.
The middle market price of an Ordinary share at the close of business on 30 April 2005 was 94.75p (2004: 119.0p). The highest and
lowest middle market prices of an Ordinary share during the year to 30 April 2005 were 122.75p and 83.5p respectively.
Performance graph
The Directors’ Remuneration Report Regulations 2002 require the Remuneration report to contain a graph showing the performance
of the Company and a ‘broad equity market index’ over the past 5 years. As the Company was a constituent of the FTSE Mid 250
Index at the start and end of the relevant period, this index is considered an appropriate form of ‘broad equity market index’ against
which the Company’s performance should be compared. Performance, as required by the Regulations, is measured by Total
Shareholder Return (share price growth plus dividends reinvested).
Pension contributions, tables 1 and 3 and related footnotes and paragraphs are audited information.
By order of the Board
Vernon Sankey
Chairman of the Remuneration Committee
20 June 2005
34 Photo-Me International plc 
Annual Report 2005
Remuneration report
Remuneration report
0
20
40
60
80
100
120
140
30 Apr 00 30 Apr 01
The value of £100 invested in Photo-Me International on 30 April 2000 compared with the value of £100 invested in the FTSE Mid 250 Index.
Total shareholder return
30 Apr 02 30 Apr 03 30 Apr 04 30 Apr 05
Photo-Me International
value (£)
Source: Thompson Financial FTSE Mid 250 Index Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs
of the Company and of the Group and of the profit or loss of the Group for that period. In preparing those accounts, the directors
are required to:
– select suitable accounting policies and then apply them consistently;
– make judgements and estimates that are reasonable and prudent; and
– state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the accounts.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that the accounts comply with the Companies Act 1985. They are also
responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Statement of directors’ responsibilities
35 Photo-Me International plc 
Annual Report 2005
Statement of directors’ responsibilities/Independent auditor’s report
Statement of directors’ responsibilities
Independent auditor’s report
to the members of Photo-Me International plc
We have audited the Group’s financial statements for the year ended 30 April 2005 which comprise the Group profit and loss account,
Group balance sheet, Company balance sheet, Group cash flow statement and related notes, Group statement of total recognised gains
and losses, Reconciliation of movements in shareholders’ funds and the related notes 1 to 27. These financial statements have been
prepared on the basis of the accounting policies set out therein. We have also audited the information in the directors’ Remuneration
report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an
auditor’s report and for no other purpose. T o the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report, including the financial statements which are required to be prepared in
accordance with applicable United Kingdom law and accounting standards as set out in the Statement of directors’ responsibilities in
relation to the financial statements.
Our responsibility is to audit the financial statements and the part of the directors’ Remuneration report to be audited in accordance with
relevant legal and regulatory requirements, United Kingdom Auditing Standards and the Listing Rules of the Financial Services Authority.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and
the part of the directors’ Remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985.
We also report to you if, in our opinion, the Report of the directors is not consistent with the financial statements, if the Company has
not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law or the Listing Rules regarding directors’ remuneration and transactions with the Group is not disclosed.
We review whether the Corporate governance statement reflects the Company’s compliance with the seven provisions of the Combined
Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider whether the Board’s
statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group’s corporate governance
procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.
This other information comprises the Report of the directors, the unaudited part of the directors’ Remuneration report, Chairman’s
statement, Chief executive’s review, Financial review, Board of directors and secretary and Corporate governance statement. We consider
the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial
statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the
directors’ Remuneration report to be audited. It also includes an assessment of the significant estimates and judgements made by the
directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the directors’ Remuneration
report to be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the directors’
Remuneration report to be audited.
Opinion
In our opinion:
– the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 30 April 2005 
and of its profit for the year then ended; and
– the financial statements and the part of the directors’ Remuneration report to be audited have been properly prepared in
accordance with the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
London
20 June 2005 2005 2004
Note £’000 £’000 
Turnover – continuing operations 236,054 219,949
Less: share of turnover of joint venture (82) –
Group turnover – continuing operations 2 235,972 219,949
Cost of sales (176,013) (177,826)
Exceptional cost of sales 3 (816) –
Total cost of sales (176,829) (177,826)
Gross profit 59,143 42,123
Administrative expenses (26,256) (20,847)
Other operating income 1,468 983
Operating profit – continuing operations 34,355 22,259
Share of operating loss of joint venture (78) –
Share of operating profit of associates 34 32
Total operating profit 34,311 22,291
Profit on the sale of a joint venture 3 – 358
Profit on ordinary activities before interest 34,311 22,649
Interest receivable 415 195
Interest payable 3 (1,689) (1,714)
Profit on ordinary activities before taxation 3 33,037 21,130
Tax charge on profit on ordinary activities (11,253) (6,018)
Tax credit on exceptional item 5 343 –
Total tax charge 5 (10,910) (6,018)
Profit on ordinary activities after taxation  22,127 15,112
Minority interests
– equity interests (389) (535)
– non-equity interests (18) (19)
Profit attributable to members of the holding company 21,720 14,558
Dividends – equity interests 7 (7,285) (3,643)
Retained profit for the year 14,435 10,915
Earnings per share
Basic earnings per share 8 5.96p 4.01p
Adjusted basic earnings per share
†
8 6.28p 4.06p
Diluted earnings per share 8 5.90p 3.97p
Adjusted diluted earnings per share
†
8 6.21p 4.02p    
†The alternative measure of earnings per share is provided because it reflects the Group’s underlying trading performance excluding the effects of goodwill amortisation
and exceptional items.
Dividends per share 7 2.00p 1.00p
36 Photo-Me International plc 
Annual Report 2005
Group profit and loss account
for the year ended 30 April 2005
Group profit and loss account 37 Photo-Me International plc 
Annual Report 2005
Group Company
2005 2004 2005 2004
Note £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 9 24,231 21,395 – –
Tangible assets 10 71,856 63,971 17,284 18,210
Investments 11 260 282 32,593 30,127 
96,347 85,648 49,877 48,337 
Current assets
Stocks 12 23,126 23,018 5,402 3,170
Debtors 13 42,728 32,345 12,557 12,855
Investments and short-term deposits 14 14,278 13,983 – –
Cash at bank and in hand 19,637 18,026 715 140
99,769 87,372 18,674 16,165
Creditors
Amounts falling due within one year 15 78,292 68,649 48,996 40,649
Net current assets/(liabilities) 21,477 18,723 (30,322) (24,484) 
Total assets less current liabilities 117,824 104,371 19,555 23,853
Creditors
Amounts falling due after more than one year 15 18,477 17,651 13,023 14,355
99,347 86,720 6,532 9,498
Provision for liabilities and charges
Provisions 17 4,760 6,323 250 101
Provision for joint venture deficit
– gross assets (461) – – –
– gross liabilities 546 – – –
18 85 – – –
Deferred taxation 19 9,075 8,747 – –
13,920 15,070 250 101
85,427 71,650 6,282 9,397
Minority interests
– equity interests 1,187 1,713 – –
– non-equity interests 764 803 – –
83,476 69,134 6,282 9,397
Capital and reserves
Called-up share capital 20 2,022 2,022 2,022 2,022 
Reserves:
Share premium account 21 3,487 3,487 3,487 3,487 
Other reserves 21 2,806 2,765 – –
Profit and loss account 21 75,161 60,860 773 3,888
83,476 69,134 6,282 9,397
Shareholders’ funds are attributable to:
Equity interests 83,275 68,933 6,081 9,196
Non-equity interests 201 201 201 201
83,476 69,134 6,282 9,397
The accounts were approved by the Board on 20 June 2005.
Serge Crasnianski Jean-Luc Peurois
Chief Executive Officer Group Finance Director
Balance sheets
as at 30 April 2005
Balance sheets 38 Photo-Me International plc 
Annual Report 2005
2005 2004
Note £’000 £’000
Net cash inflow from operating activities a 51,827 58,743
Dividends from associated undertakings 55 26
Returns on investments and servicing of finance b (1,301) (1,553)
Taxation b (5,912) (1,102)
Capital expenditure and financial investment b (34,529) (20,979)
Acquisitions and disposals b (2,456) (154)
Dividends paid – equity shareholders (6,557) –
Cash inflow before use of liquid resources and financing 1,127 34,981
Management of liquid resources b (292) (12,876)
Financing b 3,674 (15,103)
Increase in cash in the year 4,509 7,002
Reconciliation of net cash flow to movement in net cash/debt c
Increase in cash in the year 4,509 7,002
Repayment of capital element of finance leases 622 2,151
Cash flow from (increase)/decrease in debt (4,286) 13,942
Cash flow from increase in liquid resources                                                292 12,876
Change in net cash/debt resulting from cash flows 1,137 35,971
Foreign exchange translation differences 1 355
Movement in net cash/debt in the year 1,138 36,326
Opening net cash/(debt) 2,925 (33,401)
Closing net cash c 4,063 2,925
(a) Reconciliation of operating profit to operating cash flow
2005 2004
£’000 £’000
Operating profit 34,355 22,259
Depreciation and amortisation charges 23,684 29,863
Loss on sale of assets 128 467
Other non-cash movements 142 200
Gross cash inflow 58,309 52,789
Increase in stocks (142) (3,422)
Increase in debtors (9,244) (7,058)
Increase in creditors 4,397 15,162
(Decrease)/increase in provisions (1,493) 1,272
Net cash inflow from operating activities 51,827 58,743
Group cash flow statement
for the year ended 30 April 2005
Notes to the cash flow statement
for the year ended 30 April 2005
Group cash flow statement/Notes to the cash flow statement (b) Analysis of cash flows for headings netted in the cash flow statement
2005 2004
£’000 £’000
Returns on investments and servicing of finance
Interest received 411 195
Interest paid (1,665) (1,623)
Interest element of finance lease rentals paid (15) (91)
Dividends paid to minorities (32) (34)
Net cash outflow from returns on investments and servicing of finance (1,301) (1,553)
Taxation
UK corporation tax paid (597) (507)
Overseas tax paid (5,315) (595)
Net cash outflow for taxation (5,912) (1,102)
Capital expenditure and financial investment
Purchase of intangible assets (6,574) (7,735)
Purchase of tangible assets (29,437) (13,895)
Purchase of other investments (20) (1)
Sale of tangible assets 1,502 652
Net cash outflow for capital expenditure and financial investment (34,529) (20,979)
Acquisitions and disposals
Purchase of shares from minority interests (2,454) (154)
Purchase of joint venture (2) –
Net cash outflow for acquisitions and disposals (2,456) (154)
Management of liquid resources
Net decrease/(increase) of liquid resources 2,500 (11,221)
Net movement in term deposits (2,792) (1,655)
Net cash outflow from management of liquid resources (292) (12,876)
Financing
Issue of Ordinary shares – 764
Share capital in subsidiary undertakings contributed by minorities 10 226
Debt due within one year – increase in short-term borrowings 256 14
– repayment of short-term borrowings (8,674) (11,996)
Debt due after one year – increase in long-term borrowings 13,270 21
– repayment of long-term borrowings (566) (1,981)
– capital element of finance lease rental payments (622) (2,151)
Net cash inflow/outflow from financing 3,674 (15,103)
(c) Analysis of net cash/(debt)
Other
At Exchange non-cash At
1 May 2004 Cash flow movement changes 30 April 2005
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 18,026 1,692 (81) – 19,637
Overdrafts (5,674)2,817–– (2,857)
4,509
Debt due after one year (14,342) (12,704) 57 11,124 (15,865)
Debt due within one year (8,436) 8,418 22 (11,124) (11,120)
Financeleases (632)622–– (10)
(3,664)
Current asset investments and short-term deposits 13,983 292 3 – 14,278
Total 2,925 1,137 1 – 4,063
39 Photo-Me International plc 
Annual Report 2005
Notes to the cash flow statement 40 Photo-Me International plc 
Annual Report 2005
2005 2004
£’000 £’000
Profit attributable to shareholders 21,720 14,558
Exchange and other adjustments (93) (2,476)
Total recognised gains and losses for the year 21,627 12,082
Group statement of total recognised gains and losses
for the year ended 30 April 2005
Group statement of total recognised gains and losses/Reconciliation of movements in shareholders’ funds
2005 2004
£’000 £’000
Profit for the financial year before dividends 21,720 14,558
Dividends (7,285) (3,643)
Exchange and other adjustments (93) (2,476)
Shares issued – 764
Net movements in shareholders’ funds 14,342 9,203
Opening shareholders’ funds 69,134 59,931
Closing shareholders’ funds 83,476 69,134
Reconciliation of movements in shareholders’ funds
for the year ended 30 April 2005 1 Accounting policies
(a) Basis of preparation
The accounts are prepared under the historical cost convention in accordance with applicable UK accounting standards (UKGAAP). 
A summary of the more significant Group accounting policies is set out below.
The accounts for the year-ended 30 April 2006 will be presented under International Financial Reporting Standards (IFRS) as noted
on page 23. 
The Group continued to adopt the transitional arrangement of FRS17 ‘Retirement Benefits’. FRS17 is not fully effective until
periods beginning on or after 1 January 2005.
(b) Basis of consolidation
The Group accounts consolidate the accounts of the Company and all of its subsidiary undertakings made up to 30 April 2005,
together with the appropriate share of the results of associated undertakings and of joint ventures made up to 30 April 2005. 
Entities in which the Group holds an interest on a long-term basis and are jointly controlled by the Group and one or more venturers
under a contractual arrangement are treated as joint ventures. In the Group accounts, joint ventures are accounted for using the
gross equity method.
Entities, other than subsidiary undertakings or joint ventures, in which the Group has a participating interest and over whose
operating and financial policies the Group exercises a significant influence are treated as associated undertakings. In the Group
accounts, associated undertakings are accounted for using the equity method.
The Group accounts include income from current asset investments as follows; dividend income on a dividend received basis, 
and other investment income on an accruals basis.
Where the accounts of subsidiary, associated undertakings and joint ventures do not conform with the Group’s accounting policies,
appropriate adjustments are made on consolidation to prepare the Group accounts on a consistent basis.
The Company has not presented its own profit and loss account, as permitted by Section 230 (4) of the Companies Act 1985.
(c) Foreign currencies
Group
The accounts of overseas subsidiary undertakings and joint ventures are translated at the rate of exchange ruling at the balance
sheet date. The exchange difference arising on the retranslation of opening net assets is taken directly to reserves. All other
translation differences are taken to the profit and loss account with the exception of differences on foreign currency borrowings 
to the extent that they are used to finance or provide a hedge against Group equity investments in foreign enterprises, which are
taken directly to reserves together with the exchange difference on the net investment in these enterprises. Tax charges and credits
attributable to exchange differences on those borrowings are also dealt with in reserves.
Company
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at the contracted rate if the
transaction is covered by a forward foreign currency contract. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate. All differences 
are taken to the profit and loss account with the exception of differences on foreign currency borrowings, to the extent that they
are used to finance or provide a hedge against foreign equity investments, which are taken directly to reserves together with the
exchange difference on the carrying amount of the related investments. Tax charges and credits attributable to exchange differences
on those borrowings are also dealt with in reserves.
(d) Goodwill
Goodwill or negative goodwill, which represents the difference between the fair value of net assets acquired and the fair value of
the amount paid, is capitalised in the balance sheet as an intangible asset. Goodwill is amortised on a straight line basis over the
useful life of the asset with a maximum period of 20 years. Negative goodwill arising on the acquisition of companies is written back
to the profit and loss account evenly over the period in which the non-monetary assets are recovered. Goodwill relating to
acquisitions prior to 1 May 1999 was charged directly to reserves and, in accordance with the transitional arrangements of FRS10,
has not been restated.
If an undertaking acquired before 1 May 1999 is subsequently divested, the appropriate goodwill is dealt with through the profit
and loss account in the period of the disposal as part of the calculation of gain or loss on investment.
(e) Other intangible assets
Research and development expenditure is written-off in the year in which it is incurred where the commercial viability of the item
being developed is uncertain. Development expenditure relating to a specific project is carried forward when its future recoverability
can reasonably be regarded as assured.
Intellectual property, such as acquired patents and licenses, is capitalised as an intangible asset.
Notes on the accounts
for the year ended 30 April 2005
41 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 1 Accounting policies (continued)
(f) Amortisation and depreciation
Intangible assets are amortised on a straight line basis to write-off the assets at the following rates:
Goodwill – over the estimated life of the asset with a maximum period of 20 years;
Development expenditure – amortised in line with the expected future sales from the related project, 
with a maximum period of 4 years following commercial production;
Intellectual property – over the estimated life of the asset with a maximum period of 20 years.
Depreciation is charged on either a straight line basis or on a reducing balance basis to reduce the cost of tangible fixed assets 
to their net realisable values over their estimated useful lives at the following rates:
Freehold land – nil
Freehold buildings – 2% – 5% straight line
Long lease property – 2% straight line
Short lease property – over the lives of the leases on a straight line basis
Photobooths, etc. – 10% – 30% straight line
Plant, etc. – 12.5% – 25% straight line or reducing balance
(g) Impairment of fixed assets and goodwill
When indicators of impairment exist, the carrying value of intangible and tangible fixed assets is compared to the higher of the
value in use and the net realisable value. If the carrying value exceeds the higher of the value in use and net realisable value, 
the asset is impaired and its value reduced by charging additional amortisation or depreciation.
(h) Leased assets
Rentals payable under operating leases are charged to the profit and loss account, as incurred, over the term of the lease. An asset
acquired under a finance lease agreement is capitalised in the balance sheet and depreciated over the shorter of the lease term and
its estimated useful life, on a straight line basis.
(i) Derivatives and other financial instruments
Foreign exchange contracts
The Group uses forward exchange contracts as part of its strategy to minimise foreign exchange exposure. Usually such contracts
are of a short-term nature and cover foreign currency purchases. The rates under such contracts are used to record the hedged item.
As a result, gains and losses are off-set against the foreign exchange gains and losses on the related financial assets and liabilities.
Debt instruments 
Financial instruments, mainly loans, are utilised to raise finance for the Group’s trading operations. Interest on borrowings is charged
to the profit and loss account as incurred.
Interest rate swaps 
Interest rate swaps are recognised where an instrument changes the character of the interest rate by converting a variable rate to 
a fixed rate or vice versa. Interest differentials are recognised by accruing with net interest payable. Interest rate swaps are not 
revalued to fair value nor shown on the Group balance sheet at the year end. If they are terminated early, the gain or loss is spread
over the remaining maturity of the original instrument.
(j) T axation
Corporation tax chargeable on profits assessed to taxation is provided for at current rates that have been enacted or substantively
enacted at the balance sheet date.
(k) Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date
where transactions and events have occurred by that date and which could give rise to an obligation to pay, or right to receive, more
or less taxation in the future with the following exceptions:
– Deferred tax assets are recognised only when, on the basis of all available evidence, it can be regarded as more likely than not
that there will be adequate taxable profits against which to recover carried forward tax losses from which the future reversal of
underlying timing differences can be deducted;
– Deferred taxation is recognised in respect of retained earnings of overseas subsidiary undertakings, associated undertakings
and joint ventures only to the extent that, at the balance sheet date, dividends have been accrued as receivable.
Deferred taxation is measured at the tax rate expected to apply in the period in which the timing differences are expected to
reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred taxation
balances are not discounted.
(l) Turnover
Turnover comprises the net invoiced value of sales to third parties and the revenue from cash takings in vending companies, 
stated net of value added tax.
Sales of operating equipment by the Group’s Manufacturing division to Group undertakings, which is then capitalised within the
accounts of Group undertakings, is excluded from sales as noted in the analysis of turnover (Note 2).
Revenue is recognised at the point of sale.
42 Photo-Me International plc 
Annual Report 2005
Notes on the accounts (m) Own work capitalised
The Group manufactures vending equipment which is used by Group vending companies. This is shown in cost of sales as own 
work capitalised and this figure includes direct costs associated with manufacture and applicable overheads attributable to the
Manufacturing facility but excludes general overheads and administration costs.
(n) Investments
Investments are stated in the balance sheet at cost less amounts written-off.
(o) Stocks
Stocks are stated at the lower of cost and net realisable value as follows:
Cost incurred in bringing each product to its present location and condition:
Raw materials and consumables – purchase cost on a first-in, first-out basis
Work-in-progress and finished goods – cost of direct materials and labour plus attributable overheads based 
on the normal level of activity
Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal.
(p) Cash and liquid resources
In the cash flow statement, ‘Cash at bank’ and ‘Overdrafts’ are balances with banks, repayable on demand. ‘Liquid resources’
include term deposit accounts and other investment instruments used by the Group to manage its overall cash position.
In the balance sheet, ‘Current assets – Investments and short-term deposits’ include liquid resources and other investments held 
for resale.
(q) Pension costs
Some of the Company’s longer serving employees belong to a pension scheme, which is closed to new entrants. The scheme is
funded by both employer’s and employees’ contributions and is of the defined benefit type. The defined benefits are based upon 
an employee’s years of service and final pensionable salary. The pension cost is assessed in accordance with the advice of an
independent qualified actuary. Actuarial valuations are undertaken at least every 3 years. Any difference between the cost charged
and amounts paid by the Company is treated as a prepayment or accrual. Contributions to the scheme are charged to the profit and
loss account so as to spread the cost of pensions over employees’ working lives with the Company, in accordance with SSAP 24
‘Accounting for Pension Costs’.
The Company also operates a defined contribution pension scheme for senior employees. One overseas subsidiary undertaking
operates a defined contribution pension schemes for employees. The profit and loss account is charged with the contributions
payable in respect of all such schemes.
Certain overseas companies are required by local legal circumstances to make provision for employee retirement. Provision for costs
are based on local circumstances, length of service and salaries of employees.
2 Segmental analysis
Turnover was contributed as follows:
2005 2004
Analysis by activity £’000 % £’000 %
Manufacturing:
Total sales 110,286 82,448
Sales of capital equipment to Group undertakings for own use (12,272) (3,889)
Sales to third parties 98,014 41.5 78,559 35.7
Vending 137,958 58.5 141,390 64.3
Total sales to third parties 235,972 100.0 219,949 100.0
2005 2004
Geographical analysis by origin £’000 % £’000 %
Continental Europe 141,526 60.0 130,765 59.5
United Kingdom and Republic of Ireland 60,870 25.8 54,035 24.6 
Asia 30,782 13.0 31,210 14.1
United States of America 2,794 1.2 3,939 1.8
235,972 100.0 219,949 100.0 
Sales of capital equipment to Group undertakings of £12,272,000 (2004: £3,889,000) originates from Continental Europe and has
been excluded from the geographical analysis by origin.
43 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 2 Segmental analysis (continued)
Profit on ordinary activities before taxation was contributed as follows:
2005
After
exceptional
Before exceptional items items 2004
Geographical analysis £’000 % £’000 £’000 %
Continental Europe 30,547 90.2 30,547 17,344 82.1
United Kingdom and Republic of Ireland 299 0.9 299 3,016 14.3
Asia and Australia 3,007 8.9 2,191 1,096 5.2
United States of America –– – (326) (1.6)
33,853 100.0 33,037 21,130 100.0
United Kingdom and Ireland profit is stated after charging head office costs.
It is the opinion of the directors that disclosure of the net assets and of the profit before taxation by activity (Manufacturing and
Vending), the net assets by geographical analysis and the turnover by geographical analysis by destination, in accordance with
Statement of Standard Accounting Practice 25 (Segmental Reporting), would be seriously prejudicial to the interests of the Group.
3 Profit on ordinary activities before taxation
Profit before taxation (from continuing operations) is stated after charging or (crediting):
2005 2004
£’000 £’000
Research and development:
Amortisation of intangible fixed assets 4,327 4,080
Depreciation of tangible fixed assets 116 98
Current year expenditure 708 669
Amortisation of goodwill 676 570
Amortisation of negative goodwill – (25)
Amortisation of intellectual property 307 222
Depreciation of tangible fixed assets – owned 17,125 22,984
– leased 1,133 1,934 
Operating lease rentals – plant and machinery 1,377 1,365
– land and buildings 13,152 11,803 
Own work capitalised (12,272) (3,889)
Loss on sale of fixed assets 128 467
Auditors remuneration – Company 153 145
Auditors remuneration – subsidiary undertakings 293 206
Auditors – other services to the Company and its UK subsidiaries 83 92
Operating exceptional items charge/(credit)
2005 2004
£’000 £’000
Exceptional restructuring costs 816 –
The exceptional item of £816,000 shown in cost of sales, relates to restructuring in Japan arising from the reduction in the
workforce, following the introduction of new digital photobooths, which are less labour intensive to maintain. This cost was paid 
in the year.
Non-operating exceptional items
2005 2004
£’000 £’000
Profit on disposal of joint venture – (358) 
The non-operating exceptional item for 2004 relates to the profit on disposal of the joint venture, Digital Portal Inc.
44 Photo-Me International plc 
Annual Report 2005
Notes on the accounts Fire loss
On 22 December 2004, the Group’s 62,000 sq ft warehouse and workshop building at Bookham was destroyed by fire, together
with its contents. The contents principally comprised minilabs for resale, spare parts and consumables, together classified within
stocks, and vending equipment being refurbished, classified as tangible fixed assets. The Group’s head office building, on the same
site, was undamaged.
The destroyed building and its contents were adequately insured and the directors are entirely satisfied that no loss will arise, either
in relation to the loss of stocks and tangible fixed assets or a loss of profits to the business as a result of the disruption caused.
The Group’s insurers have already advanced £10 million on account, in respect of the claim, which supports the directors’ view that
the losses are fully covered. Furthermore, since the insurance cover is based on replacement cost, a material accounting surplus
could arise. However, as the claim has not been finalised, no gain has been recognised in these accounts.
The cash flows in respect of the insurance receipts and payments in order to re-stock have been recognised in working capital
cash flows within the cash flow statement.
Interest payable
2005 2004
£’000 £’000
Bank loans and overdrafts 1,557 1,239
Other loans 108 384
Finance leases and hire purchase agreements 15 91
Joint venture 9 –
1,689 1,714
4 Employees
The average number of employees worldwide during the year (including executive directors) comprised:
2005 2004
Full time 1,498 1,546
Part time 173 273
1,671 1,819
Staff costs during the year, for the above persons, amounted to:
2005 2004
£’000 £’000
Wages and salaries 41,033 39,568
Social security costs 9,402 9,488
Other pension costs 
– Defined benefit scheme 111 126
– Defined contribution schemes 453 499
50,999 49,681
Directors’ emoluments:
Details of directors’ remuneration and share options are given in the Remuneration report on pages 31 to 34.
45 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 5 Taxation
The taxation charge which is based on profits for the year comprised:
2005 2004
£’000 £’000
Current taxation:
UK corporation tax
– Current year 2,473 1,564
– Prior years (360) (34)
2,113 1,530
– Double taxation relief (2,039) (4)
74 1,526
Overseas taxation
– Current year 10,452 3,022
– Prior years (100) (472)
10,352 2,550 
Share of associates’ taxation 8 5
Total current tax 10,434 4,081
Deferred taxation:
Origination and reversal of timing differences – current year: UK (115) (542)
Overseas 536 3,051
Changes in tax rates – current year: Overseas (19) 44
Total deferred tax – current year 402 2,553
Adjustments to estimated recoverable amounts of deferred tax assets arising in previous years: UK 74 (616)
Total deferred tax 476 1,937
Tax charge on profit on ordinary activities 10,910 6,018 
The tax credit on the exceptional item amounts to £343,000 and is included in overseas corporation tax.
The tax for the year is lower (2004: lower) than the weighted average rate of corporation tax in the Group of 34.91% 
(2004: 33.44%).
The differences are explained below:
2005 2004
£’000 £’000
Profit on ordinary activities before taxation 33,037 21,130
Profit on ordinary activities multiplied by weighted average rate of corporation tax in the Group 
of 34.91% (2004: 33.44 %) 11,533 7,066
Effects of:
Goodwill amortisation not deductible for tax 204 200
Fixed asset timing differences (1,632) 255
Other timing differences: 
– Research and development (682) (1,236)
– Movement on provisions 136 (1,222)
– Other short-term timing differences 1,702 (350)
Income not taxable/expenses not deductible for taxation purposes (546) 167
Unrelieved/(relieved) losses 179 (293)
Adjustments to tax in respect of prior periods (460) (506)
Current tax charge per accounts 10,434 4,081 
6 Profit of the holding company
Of the profit for the financial year, a profit of £4,170,000 (2004: £1,327,000) is dealt with in the accounts of Photo-Me
International plc.
7 Dividends
Dividends on equity – Ordinary shares
2005 2004
£’000 £’000
Interim dividend paid of 0.8p per share (2004: nil) 2,914 –
Proposed final dividend of 1.2p per share (2004: 1.0p) 4,371 3,643
2.0p per share (2004: 1.0p) 7,285 3,643
The Deferred Shares have no dividend rights.
46 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 8 Earnings per share
Basic earnings per share is calculated as the profits available to shareholders for the year divided by the weighted average number
of Ordinary shares in issue during the year.
For diluted earnings per share, the weighted average number of Ordinary shares in issue is adjusted to assume conversion of all
dilutive potential Ordinary shares. The Group has only one category of dilutive potential Ordinary shares: the share options granted
to senior staff, including directors, as detailed in Note 20, where the exercise price is less than the average market price of the
Company’s Ordinary shares during the year.
The earnings and weighted average number of shares used in the calculation are set out in the table below:
2005 2004
Number of Earnings Number of Earnings 
Earnings shares per share Earnings shares per share
£’000 ’000 pence £’000 ’000 pence
Basic earnings per share
Earnings available to Ordinary shareholders 21,720 364,253 5.96 14,558 363,387 4.01 
Effect of dilutive securities:
Options 3,921 3,613
Diluted earnings per share 21,720 368,174 5.90 14,558 367,000 3.97
Basic earnings available to shareholders 21,720 14,558
Adjustment for exceptional items 816 (358)
Adjustment for tax on exceptional items (343) –
Adjustment for goodwill amortisation 676 545
Adjusted earnings available to shareholders 22,869 14,745
Adjusted earnings per share
Basic 22,869 364,253 6.28 14,745 363,387 4.06
Diluted 22,869 368,174 6.21 14,745 367,000 4.02
The alternative measure of earnings per share is provided because it reflects the Group’s underlying trading performance excluding
the effects of goodwill amortisation and exceptional items.
9 Intangible fixed assets
Group
Negative Development Patents and
Goodwill goodwill costs licenses Total
£’000 £’000 £’000 £’000 £’000
Cost:
At 1 May 2004 10,586 (302) 23,509 1,388 35,181
Exchange adjustment 2 – 14 2 18
Additions 1,762–6,366–8,128
At 30 April 2005 12,350 (302) 29,889 1,390 43,327
Amortisation:
At 1 May 2004 2,602 (302) 10,864 622 13,786
Provided during year 676 – 4,327 307 5,310
At 30 April 2005 3,278 (302) 15,191 929 19,096
Net book value:
At 30 April 2005 9,072 – 14,698 461 24,231
At 1 May 2004 7,984 – 12,645 766 21,395
The addition to goodwill during the year mainly arises from the acquisition of the minority interest in Fotofix-
Schnellphotoautomaten GmbH.
Goodwill is being amortised at rates of between 3 and 20 years on a straight line basis.
Company
Patents and
licenses Total
£’000 £’000
Cost:
At 30 April 2005 and 1 May 2004 600 600
Amortisation:
At 30 April 2005 and 1 May 2004 600 600
Net book value:
At 30 April 2005 and 1 May 2004 – –
47 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 10 Tangible fixed assets
Group
Plant,
machinery,
Photobooths furniture,
Land and and vending fixtures and
buildings machines motor vehicles Total
£’000 £’000 £’000 £’000
Cost:
At 1 May 2004 22,012 223,309 26,331 271,652
Exchange adjustment (41) (1,644) (14) (1,699)
Reclassification –62(153)(91)
Additions 42827,1191,88929,436
Disposals (2,028)(41,044)(5,415)(48,487)
At 30 April 2005 20,371 207,802 22,638 250,811
Depreciation:
At 1 May 2004 12,031 175,085 20,565 207,681
Exchange adjustment (25) (1,300) (12) (1,337)
Reclassification – 62 (32) 30
Provided during year 899 14,813 2,662 18,374
Disposals (1,798)(38,805)(5,190)(45,793)
At 30 April 2005 11,107 149,855 17,993 178,955
Net book value:
At 30 April 2005 9,264 57,947 4,645 71,856
At 1 May 2004 9,981 48,224 5,766 63,971
Included within Group tangible fixed assets (photobooths, vending machines and motor vehicles) are assets held under finance 
lease agreements with a net book value of £25,000 (2004: £1,148,000). The depreciation charge on these assets was £ 1,133,000
(2004: £1,934,000).
Company
Cost:
At 1 May 2004 2,669 74,908 5,462 83,039
Additions – external – 6,170 515 6,685
Additions – intra group – 285 – 285
Disposals – external (291) (17,730) (4,051) (22,072)
Disposals – intra group – (240) – (240)
At 30 April 2005 2,378 63,393 1,926 67,697
Depreciation:
At 1 May 2004 1,207 58,861 4,761 64,829
Provided during year 67 5,689 471 6,227
Disposals – external (224) (16,518) (3,900) (20,642)
Disposals – intra group – (1) – (1)
At 30 April 2005 1,050 48,031 1,332 50,413
Net book value:
At 30 April 2005 1,328 15,362 594 17,284
At 1 May 2004 1,462 16,047 701 18,210
Land and buildings at net book value comprises:
Group Company
30 April 1 May 30 April 1 May
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Freehold 7,208 7,808 1,328 1,462
Short leasehold 1,944 2,058 – –
Long leasehold 112 115 – –
9,264 9,981 1,328 1,462 
48 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 11 Fixed asset investments
Group
Associated
undertakings Other Total
£’000 £’000 £’000
Cost:
At 1 May 2004 273 2,345 2,618
Exchange adjustment (19) – (19)
Retained reserves (23) – (23)
Additions – 20 20
Disposals – (118) (118)
At 30 April 2005 231 2,247 2,478
Provision:
At 1 May 2004 – 2,336 2,336
Disposals – (118) (118)
At 30 April 2005 – 2,218 2,218
Net book value:
At 30 April 2005 231 29 260
At 1 May 2004 273 9 282
The details of Group undertakings are given in Note 27.
Although the Group has an investment of more than 20% of the voting rights in the following undertakings, the Group does not
influence the managerial, operating and financial policies of these companies and has no board representation. As the Group does
not have significant influence, it accounts for these investments as ‘other investments’. Full provision has been made against the
cost of these investments.
% held Country of operation
Fotomatica do Brasil Repr. Ind. E. Com. Ltda. 45 Brazil
KIS Dominicana S.A. 30 Dominican Republic
Full provision has been made against the cost of these investments.
Company
Group Joint Associated
undertakings venture undertakings Other Total
£’000 £’000 £’000 £’000 £’000
Cost:
At 1 May 2004 35,297 – 373 895 36,565
Additions 2,4642––2,466
Disposals (67)––(118)(185)
At 30 April 2005 37,694 2 373 777 38,846
Provision:
At 1 May 2004 5,543 – – 895 6,438
Disposals (67)––(118)(185)
At 30 April 2005 5,476 – – 777 6,253
Net book value:
At 30 April 2005 32,218 2 373 – 32,593
At 1 May 2004 29,754 – 373 – 30,127
The only significant addition to Group undertakings during the year was the acquisition of the minority interest in Fotofix-
Schnellphotoautomaten GmbH.
The new joint venture relates to the formation of Photo-Me Australia Pty Ltd.
49 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 12 Stocks
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Raw materials and consumables 15,618 18,587 3,707 3,151
Work-in-progress 1,207 1,355 – –
Finished goods 6,301 3,076 1,695 19 
23,126 23,018 5,402 3,170
The replacement value of stocks was not materially different from that stated above.
13 Debtors
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Trade debtors 33,365 20,772 4,642 3,448 
Amount owed by Group undertakings – – 5,800 7,805 
Amount owed by joint venture 548 – 168 –
Amount owed by associated undertakings 102 1 1 1
Corporation tax 126 383 – –
Deferred tax debtor 955 1,119 955 885 
Other debtors 4,677 6,892 479 332
Prepayments and accrued income 2,955 3,178 512 384 
42,728 32,345 12,557 12,855 
Included within Group debtors are amounts due after one year in respect of deferred taxation of £955,000 (2004: £1,119,000),
other debtors of £963,000 (2004: £947,000) and prepayments and accrued income of £38,000 (2004: £45,000).
Included within Company debtors are amounts due after one year in respect of deferred taxation of £995,000 (2004: £885,000).
14 Current asset investments and short-term deposits
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Investments 8,750 11,251 – –
Bank deposits 5,528 2,732 – –
Liquid resources 14,278 13,983 – –
Liquid resources comprise short-term investments and bank deposit accounts where the notice period is greater than 24 hours. 
They are stated at cost less provisions. The realisable value of the investments is not materially different from their written 
down value.
50 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 15 Creditors
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Current instalments due on loans 11,120 8,436 6,243 4,342
Bank overdrafts 2,857 5,674 2,661 5,104 
Trade creditors 21,443 24,439 5,331 2,889 
Amount owed to Group undertakings – – 18,982 20,496
Lease creditors 4 614 – –
Current corporation tax 9,843 5,592 665 1,330
Other taxes and social security costs 4,445 3,227 2,315 907 
Proposed dividend 4,371 3,643 4,371 3,643
Other creditors 14,038 10,945 3,653 353 
Accruals and deferred income 10,171 6,079 4,775 1,585 
78,292 68,649 48,996 40,649
Amounts falling due after more than one year:
Loans 15,865 14,342 5,750 6,993 
Amounts owed to Group undertakings – – 7,273 7,362 
Lease creditors 6 18 – –
Other creditors 2 2 – –
Accruals and deferred income 2,604 3,289 – –
18,477 17,651 13,023 14,355
The Group has secured bank loans totalling £3,819,000 (2004: £1,635,000) on various freehold properties, trade marks and current
asset investments.
Loans repayable after 5 years totalling £nil (2004: £566,000) are repayable by instalments. For 2004 these loans included interest
free loans with repayment terms linked to the successful outcome of research and development projects.
Operating leases
Payments during the next year committed in respect of operating leases:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Land and buildings
Leases expiring:
Within one year 4,261 6,589 1,159 558
In 2nd to 5th years inclusive 6,836 3,102 1,297 448 
Over 5 years 51 27 51 27 
11,148 9,718 2,507 1,033
Other
Leases expiring:
Within one year 208 377 92 117 
In 2nd to 5th years inclusive 1,223 602 579 376 
1,431 979 671 493
Total
Leases expiring:
Within one year 4,469 6,966 1,251 675 
In 2nd to 5th years inclusive 8,059 3,704 1,876 824 
Over 5 years 51 27 51 27 
12,579 10,697 3,178 1,526 
The Group and Company have entered into lease agreements in respect of property and plant and machinery, mainly motor vehicles,
for which payment extends over a number of years. In addition the Group and Company have entered into various agreements with
site owners to secure their sites for a number of years. Such amounts payable under these agreements have been reflected as
operating lease rentals in the profit and loss account and included in the property lease rentals in the table above.
51 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 16 Financial instruments
(a) Short-term debtors and creditors
An explanation of the Group’s objectives, policies and strategies for the role of derivatives and other financial instruments in
managing and changing the risks of the Group in its activities can be found on pages 22 and 23.
Short-term debtors and creditors have been excluded from all of the following disclosures, other than the currency 
exposures section.
(b) Interest rate risk profile of financial liabilities
The interest rate risk profile of the Group’s financial liabilities at 30 April 2005 is as follows:
Financial
Floating rate Fixed rate liabilities
financial financial on which no
Total liabilities liabilities interest is paid
Currency £’000 £’000 £’000 £’000
Sterling 14,701 14,701 – –
Euros 13,938 11,322 10 2,606
US Dollars 619 – 619 –
Yen 3,790 – 3,790 –
At 30 April 2005 33,048 26,023 4,419 2,606
Sterling 16,38316,383––
Euros 12,7226,5952,2703,857
US Dollars 689 – 689 –
Yen 3,217–3,217–
At 30 April 2004 33,011 22,978 6,176 3,857
All the Group’s creditors falling due within one year (other than bank and other borrowings) are excluded from the above 
tables either due to the exclusion of short-term items or because they do not meet the definition of a financial liability, such as
taxation balances.
Included in the above analysis for fixed rate US Dollar denominated liabilities is the issued value of the US$ 3% (cumulative)
preference shares in Auto Photo Systems Inc. not owned by the Group, of £590,000 (2004: £636,000).
The Company has in issue 8,040,000 (2004: 8,040,000) Deferred shares with a nominal value of £201,000 (2004: £201,000) which
are non-equity interests. They have no voting and no dividend rights and can be redeemed for 1 penny in aggregate. They are not
shown in the above analysis.
Liabilities on which no interest is paid include other creditors, accruals and deferred income falling due after one year. In 2004, they
also included liabilities which were linked to research and development projects. 
Fixed rate financial liabilities
Weighted average
Weighted average period for which
interest rate rate is fixed
Currency % years
Euros 6.0 1.6
US Dollars 5.0 1.5
Yen 3.3 2.1
At 30 April 2005 2.1
Euros 4.7 1.5
US Dollars 6.9 1.6
Yen 2.5 2.4
At 30 April 2004 2.0
The above table does not include the Auto Photo Systems Inc. preference shares with a fixed interest rate coupon of 3% as there is
no fixed redemption period for these shares.
Floating rate financial liabilities comprise bank borrowings and overdrafts that bear interest at rates based on relevant national
LIBOR, base rate or similar equivalents. Interest rates on bank borrowings are fixed in advance for periods of between one month
and 12 months.
52 Photo-Me International plc 
Annual Report 2005
Notes on the accounts (c) Interest rate risk of financial assets
2005 2004
Investments Investments
Cash at and Cash at and 
bank and short-term Long-term Other bank and short-term Long-term Other
inhand deposits debtors investments Total inhand deposits debtors investments Total
Currency £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Sterling 603 – – – 603 453 – – – 453
Euros 5,371 10,291 992 29 16,683 4,676 13,619 984 9 19,288
Swiss Francs 660 831 9 – 1,500 2,545 364 8 – 2,917
US Dollars 9,310 3,156 – – 12,466 6,042 – – – 6,042
Yen 3,574 – – – 3,574 4,086 – – – 4,086
Other currencies 119 – – – 119 224 – – – 224
19,637 14,278 1,001 29 34,945 18,026 13,983 992 9 33,010
Investments and short-term deposits consist of deposit accounts and other short-term liquid investments. Surplus funds are invested
in accordance with approved limits on security and liquidity. Generally these are of a short-term nature and earn interest based on
current interest rates for such instruments.
Cash at bank and in hand includes non-interest earning cash and cash in transit.
Other investments consist of investments in equity. These are held for the long-term and, by their nature, they have no fixed maturity.
(d) Maturity of financial liabilities
The maturity profile of the carrying amount of the Group’s financial liabilities, other than short-term creditors such as trade creditors
and accruals, was as follows:
2005 2004
Other Other
Finance financial Finance financial
Debt leases liabilities Total Debt leases liabilities Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Within one year or on demand 13,977 4 – 13,981 14,110 614 – 14,724
Between one and 2 years 11,066 6 767 11,839 9,999 – 850 10,849
Between 2 and 5 years 4,799 – 1,839 6,638 3,777 18 2,441 6,236
Over 5 years – – 590 590 566 – 636 1,202
29,842 10 3,196 33,048 28,452 632 3,927 33,011
(e) Borrowing facilities
The Group has undrawn committed facilities available to it at 30 April 2005 of £34,078,000 (2004: £34,995,000). Having regard 
to the Group’s cash flows, it is considered that these facilities are adequate for the Group’s needs. These facilities are normally 
reaffirmed by banks annually. All undrawn facilities are subject to a floating rate of interest.
(f) Fair values of financial assets and financial liabilities
The following table provides a comparison by category of the carrying amounts and fair values of the Group’s financial assets 
and liabilities:
2005 2004
Book value Fair value Book value Fair value
£’000 £’000 £’000 £’000
Primary financial instruments held or issued to finance the Group’s operations:
Short-term borrowings (13,977) (13,977) (14,110) (14,110)
Long-term borrowings (15,865) (15,788) (14,342) (13,399)
Long-term creditors (2,606) (2,407) (3,292) (3,065)
Finance leases (10) (10) (632) (632)
Minority non-equity interests (590) (557) (636) (617)
Investments and short-term deposits 14,278 14,278 13,983 13,983
Cash at bank and in hand 19,637 19,637 18,026 18,026
Other investments 29 29 9 9
Long-term debtors 1,001 923 992 967
Forward contracts –56 ––
For the purpose of the above table, the fair value of short-term deposits, loans and overdrafts approximates to the carrying value
because of the short-term maturity of these instruments.
The fair value of all items have been calculated by discounting the expected future cash flows at prevailing interest rates.
The fair value and book value of minority non-equity interests only includes the 3% preference shares in Auto Photo Systems Inc.
owned by the minority. It does not include the arrears of dividends which, together with the principal amount, are shown as non-
equity interests in the balance sheet.
53 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 16 Financial instruments (continued)
(g) Currency exposures
Overseas subsidiary undertakings have local borrowings in their domestic currency and this mitigates the effect of currency
exposures arising from the net investment in overseas operations. Exchange differences on the retranslation of overseas net assets 
is recognised in the statement of total recognised gains and losses.
The table below shows the extent to which the Group undertakings have monetary assets and liabilities in currencies other than
their local currency. Exchange differences on retranslation of these assets and liabilities are taken to the profit and loss account.
Net foreign currency monetary assets (liabilities)
Swiss Other
Sterling Euros Francs US Dollars Yen currencies Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Functional currency of Group operation:
Sterling – (2,649) (9,561) (40) 36 216 (11,998)
Euros 807 – (788) 15,137 (250) – 14,906
Swiss Francs 2,052 5,902 – 785 – – 8,739
US Dollars – (58) – – – – (58)
Yen (147) 1,386 (572) 52 – – 719
Other currencies (297) (683) – (52) (2) – (1,034)
At 30 April 2005 2,415 3,898 (10,921) 15,882 (216) 216 11,274
Functional currency of Group operation:
Sterling –(4,790)(10,261)382(1,195)(106)(15,970)
Euros 127 – 163 6,939 (694) (2) 6,533 
Swiss Francs 2,026 2,117 – 155 – – 4,298
US Dollars (1,125) 393 – – – – (732)
Yen (139)1,430–42––1,333
Other currencies (284) (361) – – – – (645) 
At 30 April 2004 605 (1,211) (10,098) 7,518 (1,889) (108) (5,183)
(h) Hedges
Gains and losses on instruments used for hedging are not recognized until the exposure that is being hedged is recognised.
Unrecognised gains and losses on instruments used for hedging, and the movements therein are as follows.
At 30 April 2004 there were no hedging instruments.
Recognised Unrecognised
gains gains
£’000 £’000
Gains and losses arising in the year to 30 April 2005 recognised in the profit and loss account 108 –
Unrecognised gains and losses at 30 April 2005 – 56
Gains and losses expected to be realised in the year to 30 April 2006 – 56
Figures in the above table are derived from fair value of the derivative concerned at 30 April 2005.
(i) Financial instruments held for trading purposes
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall 
be undertaken.
54 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 17 Provisions for liabilities and charges
Group
Employee Employee
related retirement Product
claims allowances warranties Other Total
£’000 £’000 £’000 £’000 £’000
At 1 May 2004 281 3,985 1,911 146 6,323
Exchange adjustment – (72) 2 – (70)
Utilised (58)(1,307)(1,599)(15)(2,979)
Profit and loss charge 82 296 1,017 91 1,486
At 30 April 2005 305 2,902 1,331 222 4,760
Company
Product
warranties Total
£’000 £’000
At 1 May 2004 101 101
Utilised (101) (101)
Profit and loss charged 250 250
At 30 April 2005 250 250
Employee related claims
Certain overseas Group undertakings have made provision for claims made by former employees. It is expected that most of these
costs will be incurred in the next financial year.
Employee retirement allowances
Certain overseas Group undertakings are required by local legal circumstances to make provision for employee retirement. 
Provisions are based on local circumstances, length of service and salaries of employees.
The provision will reduce as the existing workforce retire but will be increased by provision for retirement benefits of continuing 
and new employees.
Product warranties
A provision is made for claims on products sold under warranty. The provision will reduce as the warranty period expires but will 
be increased by warranties given with new sales.
Other provisions
Other provisions are expected to be incurred in the next financial year.
18 Group investment in joint venture
£’000
At 1 May 2004 –
Share of joint venture losses (85)
At 30 April 2005 (85)
Group investment in joint venture is represented by:
2005 2004
£’000 £’000
Share of gross assets:
Fixed assets 366 –
Current assets 95 –
Share of gross liabilities:
Creditors falling due within one year (253) –
Creditors falling due after one year (293) –
Share of net liabilities (85) –
The joint venture, Photo-Me Australia Pty Ltd, was formed during the year.
55 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 19 Deferred taxation
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Capital allowances in advance of depreciation (530) (562) (559) (562) 
Differences relating to tangible assets in overseas subsidiary undertakings 3,623 2,021 – –
Other differences in recognising revenue and expense items in other periods 
for taxation purposes: 
– Research and development 4,988 4,301 – –
– Movement on provisions 2,051 2,132 – –
– Other short-term timing differences (2,012) (264) (396) (323)
8,120 7,628 (955) (885)
The closing balance comprises:
Deferred tax debtor 955 1,119 955 885
Deferred tax creditors 9,075 8,747 – –
The movements on deferred taxation during the year were:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Opening balance 7,628 6,009 (885) 270 
Exchange adjustment 16 (318) – –
Transferred from subsidiary undertaking – – – (616)
Charge/(credit) for the year 476 1,937 (70) (539)
Closing balance 8,120 7,628 (955) (885)
Factors that may affect future tax charges
Based on current capital expenditure plans, the Group expects that capital allowances will be lower than depreciation charges and
that the deferred tax provision will reduce in the future.
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries, associates and the joint venture, except to the
extent that dividends have been accrued for in the parent company.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in future periods in which the timing
difference will reverse, based on tax rates and laws substantively enacted at the balance sheet date.
Unrecognised deferred tax assets
Deferred tax assets amounting to £4,985,000 (2004: £4,912,000) in respect of unrelieved tax losses, have not been recognised as
their future economic benefit is uncertain.
56 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 20 Share capital
2005 2004 2005 2004
Number Number £’000 £’000
Authorised:
Ordinary shares of 0.5p each 439,800,000 439,800,000 2,199 2,199 
Deferred shares of 2.5p each 8,040,000 8,040,000 201 201 
447,840,000 447,840,000 2,400 2,400 
Allotted, issued and fully paid:
Ordinary shares of 0.5p each 364,289,120 364,252,370 1,821 1,821 
Deferred shares of 2.5p each 8,040,000 8,040,000 201 201 
372,329,120 372,292,370 2,022 2,022 
The nominal value of the 36,750 Ordinary shares issued during the year was £184 (2004: £6,053). The consideration received for
the shares issued during the year was £184.
The Deferred shares carry no dividend rights and no voting rights. The Company may at its option, at any time, redeem all of the
Deferred shares, at an aggregate price not exceeding 1p.
In accordance with Financial Reporting Standard 4 (FRS4) ‘Capital Instruments’, 8,040,000 Deferred shares have been classified as
non-equity interests.
Share options which have been granted to senior staff, including directors, to purchase Ordinary shares of 0.5p each are as follows:
Number of options
as at
1 May 2004 Date from
and Exercise which
Date options granted 30 April 2005 price exercisable
10 Feb 1998 50,000 38.20p 10 Feb 2003
8 Sep 1998 300,000 74.20p 8 Sep 2003
22 Aug 2000 308,500 87.00p 22 Aug 2005
10 Jan 2002 1,035,000 35.33p 10 Jan 2007
13 Dec 2002 3,135,000 18.33p 13 Dec 2007
3 July 2003 325,000 63.17p 3 July 2008
13 Feb 2004 415,000 138.50p 13 Feb 2009
Total 5,568,500
No new options were granted and no existing options were exercised or lapsed during the year to 30 April 2005.
Full details of directors’ share options are given in the Remuneration report on page 34.
All options can be exercised, in normal circumstances, within a period of 4 years from the exercise of option date, providing that the
performance criterion has been achieved. The performance criterion applying to options issued on or before 10 January 2002 is that,
over a 3 year period, the Company achieves real earnings per share growth averaging 2% a year, or more. The performance criterion
applying to the options granted on or after 13 December 2002 is that, over a 3 year period, the Company achieves real earnings 
per share growth averaging 3% a year, or more. The subscription price for all options is based upon the average market price on 
the 3 days prior to the date of grant. Options are restricted if the grantee leaves the employment of the Group before the first
exercise date.
57 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 21 Reserves
Group
Share premium Other Profit and
account reserves loss account Total
£’000 £’000 £’000 £’000
At 1 May 2004 3,487 2,765 60,860 67,112
Transfers between reserves – 42 (42) –
Profit for the year – – 21,720 21,720
Dividend – – (7,285) (7,285)
Exchange and other adjustments – (1) (92) (93)
At 30 April 2005 3,487 2,806 75,161 81,454
Goodwill charged to reserves is £13,063,000 (2004: £13,063,000).
Company
Share premium Profit and
account loss account Total
£’000 £’000 £’000
At 1 May 2004 3,487 3,888 7,375
Profit for the year – 4,170 4,170
Dividend – (7,285) (7,285)
At 30 April 2005 3,487 773 4,260
22 Capital commitments
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Contracts placed for future capital expenditure not provided in the accounts:
For supply by third parties 3,721 1,961 157 271
In addition, the Groups Vending companies have contracted with a Group Manufacturing company for the supply of machines
totalling £9,562,000 (2004: £3,470,000), of which the Company’s commitments total £1,273,000 (2004: £1,467,000).
23 Contingent liabilities
The Group and Company have issued guarantees as follows:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
In respect of subsidiary undertakings
– liabilities – overdrafts – – 78 98
– loans – – 982 1,568 
– contingent liabilities – overseas taxation 1,583 1,566 1,583 1,566
– others 124 124 – –
In respect of third parties 35 – 35 –
1,742 1,690 2,678 3,232
The Company has given guarantees for loans and overdrafts to subsidiary undertakings and for overseas taxation of a subsidiary
undertaking. In addition, the Company and subsidiary undertakings have given other guarantees in the normal course of business 
to third parties. No losses are expected from guarantees given by the Company and subsidiary undertakings.
Adequate provision has been made for legal disputes and the directors thus consider no contingent liability for litigation exists.
24 Post balance sheet event
On 27 May 2005 the Company acquired 100% of the issued share capital of Jolly Roger (Amusement Rides) Limited for
£1,550,000. The company, which is based in the UK, is a manufacturer of quality children’s rides. 
58 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 25 Pensions
The Company and its principal subsidiaries operate pension and other retirement schemes including both defined benefit schemes,
whereby retirement benefits are based on the employee’s final remuneration and length of service, and defined contribution
schemes, whereby retirement benefits reflect the accumulated value of agreed contributions paid by, and in respect of, employees. 
Defined benefit schemes
The Company operates a defined benefit scheme for a few long-serving employees. This pension scheme (the Photo-Me
International plc Pension and Life Assurance Fund) is closed to new entrants.
Contributions to the scheme are made in accordance with the recommendations of an independent qualified actuary on the basis of
triennial valuations using the Attained Age method. The most recent valuation of the scheme was prepared as at 1 June 2003 for
the purpose of SSAP 24 “Accounting for Pension Costs”. The principal assumptions which have the most significant effect on the
valuation were: investment returns on equities of 7.5% per annum, investment returns on gilts/bonds of 5% per annum, salary
increases of 3.5% per annum, and price inflation of 2.5% per annum. The market value of the scheme’s assets at the valuation date
was £4,055,000, representing 91% of the value of the aggregate benefits that had accrued to members, after allowing for expected
future increases in salaries. 
The deficit identified above is being recognised over 10 years, being the average remaining service lives of employees. With
agreement from the actuary, the Company will make contributions to the Scheme at 13.1% of pensionable salaries for the year
ending 30 April 2006, plus an additional payment of £56,000 (2004: £51,000) to reduce the deficit revealed in the actuarial
valuation as at 1 June 2003, which is planned to be removed over a 5 year period.
The total pension cost (as disclosed in Note 4) amounted to £111,000 (2004: £100,000) and included an amount in respect of 
the amortisation of the deficit in the scheme as at 1 June 2003.
The next actuarial valuation of the scheme is due as at 1 June 2006. 
Other retirement provisions
Provisions for obligations to make termination payments on retirement, to staff who are not members of the pension and retirement
schemes, are included in provisions for liabilities and charges (Note 17), as follows:   
– The Group’s Japanese subsidiary undertaking, Nippon Auto-Photo K.K., has a retirement provision, based on employee’s length of
service with the company and their current salary. The allowance is paid to employees when they leave the company. This has
been provided for in full within the accounts.
– To meet the legal obligations within France, the Group’s subsidiary undertakings have retirement provisions which have been
valued by an actuary using the Projected Unit Credit Method. Following the latest valuation in the year to April 2004, the
estimated obligation has been fully provided for within the accounts.
The amount charged to the profit and loss account in respect of these obligations is £296,000 (2004: £727,000).
Defined contribution schemes
The total pension cost for the year for defined contribution schemes (as disclosed in Note 4) is reconciled as follows:
2005 2004
£’000 £’000
Photo-Me International plc (United Kingdom) 68 58
Imaging Solutions AG (Switzerland) 385 441
Total defined contribution expense 453 499
In respect of the Company’s United Kingdom defined contribution scheme, £6,000 of contributions were outstanding at 
30 April 2005 (2004: £5,000).
Disclosures in respect of FRS17 – Retirement benefits
The above figures have been prepared in accordance with the requirements of SSAP24. FRS17 “Retirement Benefits” will replace
SSAP 24 for periods commencing on or after 1 January 2005. The accounting requirements of FRS17 are broadly as follows:
– Pension scheme assets are valued at market values at the balance sheet date
– Pension scheme liabilities are measured using a projected unit credit method and discounted at the current rate of return on high
quality (AA) corporate bonds of equivalent term and currency to the liability
– For accounting periods beginning on or after 1 January 2005 the pension scheme surplus (to the extent it is considered
recoverable) or deficit will be recognised in full and presented on the face of the balance sheet; and
– The movement in the scheme surplus/deficit will be split between operating charges, financing items and, in the statement of
total recognised gains and losses, actuarial gains and losses.
59 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 25 Pensions (continued)
The transitional disclosures in respect of FRS 17 are set out below:
A full actuarial valuation of the UK scheme was carried out as at 1 June 2003 and updated to 30 April 2005 by a qualified
independent actuary.
The principal actuarial assumptions were:
At AtAt
30 April 2005 30 April 2004 30 April 2003
% % %
Rate of increase in salaries 3.8 4.0 4.5
Rate of increase to pensions in payment for pensions accrued before 6 April 1997 3.0 3.0 3.0
Rate of increase to pensions in payment for pensions accrued after 5 April 1997 2.8 3.0 2.5 
Rate of increase of deferred pensions 2.8 3.0 2.5
Discount rate 5.3 5.7 5.5 
Inflation assumption 2.8 3.0 2.5 
The Company contributions during the accounting period amounted to £85,000 (2004: £49,000) and the agreed Company
contribution rate for the coming year is 13.1% of pensionable pay plus an additional amount of £56,000 (2004: £51,000) to reduce
the deficit revealed in the actuarial valuation as at 1 June 2003, which is planned to be removed over a 5 year period.
The scheme is closed to new entrants. In accordance with FRS17, using the projected unit method for closed schemes, the
contribution rate underlying the current service cost will increase as the members of the scheme approach retirement.
The assets and liabilities in the scheme and the expected rate of return were:
30 April 2005 30 April 2004 30 April 2003
Expected Expected Expected 
long-term long-term long-term
rate of Value rate of Value rate of Value
return £’000 return £’000 return £’000
Equities 8.0% 1,852 8.0% 1,781 8.0% 1,435 
Bonds 5.0% 2,139 5.4% 2,027 5.0% 2,538
Other 2.8% 376 3.0% 256 2.5% 123
Total market value of assets 4,367 4,064 4,096 
Present value of scheme liabilities (4,808) (4,491) (4,716)
Deficit in the scheme (441) (427) (620)
Related deferred tax asset 132 128 186 
Net pension liability (309) (299) (434)
If the above amounts had been recognised in the accounts, the Group’s shareholders’ funds and profit and loss reserve would be 
as follows:
2005 2004
£’000 £’000
Shareholders’ funds
Shareholders’ funds excluding net pension liability 83,476 69,134
Net pension liability under FRS17 (309) (299)
Shareholders’ funds including net pension liability 83,167 68,835
Profit and loss reserve
Profit and loss reserve excluding net pension liability 75,161 60,860
Net pension liability under FRS17 (309) (299)
Profit and loss reserve including net pension liability 74,852 60,561
60 Photo-Me International plc 
Annual Report 2005
Notes on the accounts On the basis of the above assumptions and in compliance with FRS17 the amounts that would have been charged to the Group profit
and loss account and the Group statement of total recognised gains and losses would be as follows:
2005 2004
£’000 £’000
Analysis of amount charged to operating profit:
Current service cost 36 54
Past service cost – –
Total operating charge 36 54
Analysis of amount credited/(charged) to other finance income:
Expected return on pension scheme assets 256 240
Interest on pension scheme liabilities (251) (254)
Net finance return 5 (14)
Analysis of the amount recognised in the Group statement of total recognised gains and losses:
2005 2004
£’000 £’000
Actual return less expected return on pension scheme assets 177 (75)
Experience gain arising on pension scheme liabilities – 142
(Loss)/gain arising from changes in assumptions underlying the scheme liabilities (245) 145
Actuarial (loss)/gain recognised (68) 212
Movement in deficit during the year
Deficit in scheme at beginning of the year (427) (620)
Movement in year:
Current service cost (36) (54)
Contributions 85 49
Past service costs – –
Other finance income 5 (14)
Actuarial (loss)/gain recognised (68) 212
Deficit in scheme at end of the year (441) (427)
History of experience gains and losses
2005 2004 2003
Difference between expected and actual return on scheme assets:
Amount (£’000) 177 (75) (617)
Percentage of scheme assets 4% (2%) (15%)
Experience gain on scheme liabilities:
Amount (£’000) – 142 398
Percentage of the present value of scheme liabilities 0% 3% 8%
Total amount recognised in statement of total recognised gains and losses:
Amount (£’000) (68) 212 (386)
Percentage of the present value of scheme liabilities (1%) 5% (8%)
61 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 26 Related parties
The Group’s related parties (as defined by Financial Reporting Standard 8), the nature of the relationship and the extent of the
transactions with them are summarised below.
All transactions with related parties were conducted at arm’s length in the ordinary course of business.
Directors
Philippe Wahl, who resigned as a director on 8 October 2003, had an interest in Automax Holding B.V. which owned 24.5% of the
preference shares in Auto Photo Systems Inc. Automax Holding B.V. has provided to the Company a Euro loan, which is repayable 
in instalments over a 3 year period and bears interest at a margin of 1% above Euro LIBOR. The balance due at 30 April 2005 was
£nil (2004: £56,000) and interest paid in the year to 30 April 2005 was £nil (2004: £3,000).
Philippe Wahl declared an interest of 30.3% in FOTOFIX-Schnellphotoautomaten G.m.b.H., until his disposal of the interest on 
18 September 2003.
Dan David and Philippe Wahl have declared an interest in Oserdam Corporation B.V. (‘Oserdam’). This is a holding company,
subsidiaries of which trade with the Group. The value of transactions between the Group and subsidiaries of Oserdam during 
the year ended 30 April 2005 were: sales £7,659,000 (2004: £5,385,000); purchases £3,799,000 (2004: £910,000); debtors at 
30 April 2005 £3,339,000 (2004: £2,364,000) and creditors at 30 April 2005 £147,000 (2004: £112,000).
Sir Patrick McNair-Wilson had an interest in a public relations and public affairs consultancy partnership (‘Ferret’) which provided
services to the Group, including the management of the ‘VALIDATE UK’ proof of age card scheme. This interest ceased on 1 March
2004. The value of such services during the year ended 30 April 2004 was £75,000. At 30 April 2004 the outstanding amount
payable to the partnership was £nil.
Associated undertakings
Transactions by the Group with Max Sight Limited during the year to 30 April 2005 were: sales £35,000 (2004: £46,000) and
debtors at 30 April 2005 £1,000 (2004: £1,000).
Transactions by the Group with Photomaton Maroc SARL during the year to 30 April 2005 were: sales £3,000 (2004: £nil) and
debtors at 30 April 2005 £101,000 (2004: £nil).
Joint venture
The joint venture, Photo-Me Australia Pty Ltd, was formed during the year. Transactions by the Group with the joint venture during
the year to 30 April 2005 were: sales £642,000 and debtors at 30 April 2005 £548,000 (which included shareholder’s loans of
£168,000 of which £5,000 was received as interest).
62 Photo-Me International plc 
Annual Report 2005
Notes on the accounts 27 Group undertakings
The list below represents the principal subsidiary, associated undertakings and joint ventures of the Group at 30 April 2005, with
details of the country of incorporation and principal country of operation. Details of other subsidiary and associated undertakings
not listed here will be annexed to the Company’s next Annual Return.
The Company’s interest in the Group undertakings is the same as the Group’s interest, with the exception of investments marked (*)
where the shares are held by another Group undertaking. All holdings shown relate to ordinary shares. In addition, the Company
holds 75.5% of the preference shares issued by Auto Photo Systems Inc.
The principal activities of the Group undertakings are the manufacture, sale and operation of coin-operated automatic photobooths,
copiers and express print services, together with the manufacture and sale of photo-processing equipment.
Principal Group’s
activity interest Country
Subsidiary undertakings
Animate Fotofixe E Máquinas Automáticas Lda. Vending 100% Portugal
Auto Photo Systems Inc. Investment 100% USA
FOTOFIX-Schnellphotoautomaten G.m.b.H. Vending 100% Germany
Fototronic Ausweissysteme G.m.b.H. Sales 100% Germany
Imaging Solutions A.G. Manufacturing 86% Switzerland
Imagus S.A. Research *100% France
KIS S.A.S. Manufacturing *100% France
Morenar S.A. Investment 100% Switzerland
Nippon Auto-Photo Kabushiki Kaisha Vending 100% Japan
K.K. Photec Sales *100% Japan
Photomatico (Singapore) Pte. Limited Vending 100% Singapore
Photomaton S.A. Vending *100% France
Photo-Me CR s.p.o.l. s.r.o. Vending *80% Czech Republic
Photo-Me France S.A.S. Investment 100% France
Photo-Me Hungary K.f.t. Vending *51% Hungary
Photo-Me Ireland Limited Vending 100% Ireland
Photo-Me Northern Ireland Limited Vending 100% Northern Ireland
Photo-Me USA L.L.C. Vending *94% USA
Prontophot Austria G.m.b.H. Vending 100% Austria
Prontophot Belgium N.V. Vending 100% Belgium
Prontophot Holding S.A. Investment 100% Switzerland
Prontophot Holland B.V. Vending 100% Holland
Prontophot (Schweiz) A.G. Vending 100% Switzerland
SCI du Lotissement d’Echirolles Property *61% France
SCI Immobiliere du 21 Property *100% France
Associated undertakings
Fullwise International Limited Vending 33% Hong Kong
Max Sight Limited Vending 33% Hong Kong
Photomaton Maroc SARL Vending 50% Morocco
Joint venture
Photo-Me Australia Pty Ltd Vending 50% Australia
63 Photo-Me International plc 
Annual Report 2005
Notes on the accounts Profit and loss account
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
Turnover
Manufacturing 98,014 78,559 37,598 39,770 45,431
Vending 137,958 141,390 149,790 147,121 163,385 
Total turnover 235,972 219,949 187,388 186,891 208,816 
Profit/(loss) on ordinary activities before interest 34,311 22,649 (1,077) (6,985) 2,714
Net interest (1,274) (1,519) (2,331) (3,047) (3,110) 
Profit/(loss) before taxation 33,037 21,130 (3,408) (10,032) (396)
Taxation (10,910) (6,018) (852) 574 (1,109) 
Profit/(loss) after taxation 22,127 15,112 (4,260) (9,458) (1,505) 
Minority interests (407) (554) (79) (154) 217 
Profit/(loss) attributable to shareholders 21,720 14,558 (4,339) (9,612) (1,288) 
Dividends (7,285) (3,643) – (1,089) (6,875)
Retained profit/(loss) for year 14,435 10,915 (4,339) (10,701) (8,163) 
Balance sheet
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
Intangible assets 24,231 21,395 18,273 15,595 15,156
Tangible assets 71,856 63,971 78,669 90,152 104,741
Other fixed assets 260 282 307 1,393 720 
Net current assets/(liabilities) 21,477 18,723 1,653 (4,584) 3,254 
Creditors: Amounts falling due after one year (18,477) (17,651) (24,959) (29,456) (38,647)
Provisions for liabilities and charges (13,920) (15,070) (12,036) (11,762) (13,100)
Minority interests (1,951) (2,516) (1,976) (1,999) (2,010)
Net assets 83,476 69,134 59,931 59,339 70,114 
Share capital 2,022 2,022 2,016 2,016 2,010 
Reserves 81,454 67,112 57,915 57,323 68,104 
Shareholders’ funds 83,476 69,134 59,931 59,339 70,114
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
Net cash/(debt) 4,063 2,925 (33,401) (51,404) (56,185)
Key statistics
2005 2004 2002 2001 2000
Basic earnings/(loss) per share 5.96p 4.01p (1.20p) (2.65p) (0.36p)
Dividends per share 2.00p 1.00p – 0.30p 1.90p
Dividend cover 2.98 3.98 – (8.82) (0.19)
Share price – highest 122.75p 144.00p 39.00p 124.00p 209.00p
Share price – lowest 83.50p 38.50p 14.50p 15.25p 75.00p
Share price – year end 94.75p 119.00p 39.00p 20.75p 128.50p
These figures have been extracted from the accounts for the relevant year and have not been adjusted for changes in accounting
policies as a result of adoption of new accounting standards.
64 Photo-Me International plc 
Annual Report 2005
Five year summary
for the years ending 30 April
Five year summary Registered in England
Number 735438
Registered Office
Church Road
Bookham
Surrey KT23 3EU
Tel: +44 (0)1372 453399
Fax: +44 (0)1372 459064
Web: www.photo-me.co.uk
e-mail: ir@photo-me.co.uk
Auditors
Ernst & Young LLP
1 More London Place
London SE1 2AF
Brokers
JPMorgan Cazenove Ltd
20 Moorgate
London EC2R 6DA
Evolution Securities Ltd 
100 Wood Street 
London EC2V 7AN
Bankers
Lloyds TSB Bank plc
City Office
11–15 Monument Street
London EC3V 9JA
HSBC Bank plc
54 Clarence Street
Kingston-upon-Thames
Surrey KT1 1NS
Alliance & Leicester 
Commercial Bank plc 
Regent’s Place
338 Euston Road
London NW1 3BT
Barclays Bank plc
1 Churchill Place
Canary Wharf
London E14 5HP
Financial Public Relations
Bankside Consultants Limited
1 Frederick’s Place
London EC2R 8AE
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Solicitors
Denton Wilde Sapte
One Fleet Place
London EC4M 7WS
Mundays
Cedar House
78 Portsmouth Road
Cobham
Surrey KT11 1AN
Remuneration advisers
New Bridge Street Consultants LLP
20 Little Britain
London EC1A 7DH
65 Photo-Me International plc 
Annual Report 2005
Company information and advisers
Company information and advisers United Kingdom and Ireland
L Antony 1997
N C Carter 2002
R J Cheeseman 1982
P Clarke 1995
B Crocker 1971
F De Freitas 1999
M-P Deville 1998
RDicey 1993
PDGlanvill 1996
PGurdin 1990
CHolbrook 1994
BHopkins 1999
PA Hughes 1988
TLeary 1993
AFLees 2000
GMacfarlane 1984
A J Marsh 1995
G Mercier 2000
CPalles 2003
TPeirce 2000
JE Roth 1989
A Stuart 1994
FThiollay 1995
GSTurner 2001
Continental Europe
L Bernard 1979
P MBuendia 1985
SBurkard 2000
PCanaud 1994
P Combet 1981
FCoutaz-Replan 1991
A Dierckx 1978
CDuret 1984
AFraile 1984
WOFranz 1999
SGibon 1996
GGyorko 1992
HDHestermann 1971
VHox 2001
PJobard 1998
PLavergne 1994
PLocatelli 1983
B Masson 1998
MMayaud 1990
EMergui 1996
GNiederhoff 1999
WPoint 1979
JLSattler 1978
NSeries 1995
HSuter 1990
P Tachovsky 1994
P Thelliez 1988
P Van Gerven 1985
H Van Soolingen 1973
B Wirtz-Odenthal 1994
C Wolf 1991
Asia
HAshizawa 1998
THanaoka 2001
VMathieu 1999
C Pietraszkiewicz 1989
KTezuka 1972
ATomlinson 1994
NUtsugi 1972
United States of America
MCarter 1998
66 Photo-Me International plc 
Annual Report 2005
Group executives
with year of commencement
Group executives Analysis of registered shareholdings (at 20 June 2005)
Number of % of issued
Number of Ordinary Ordinary
holdings shares share capital
Category:
Individuals 3,56212,511,8723.4
Nominees 723263,986,20472.5
Other corporate bodies 78 87,791,044 24.1
4,363 364,289,120 100.0
Size of holding:
1 – 1,000 2,102 1,146,969 0.3
1,001 – 10,000 1,770 5,464,122 1.5
10,001 – 100,000 320 10,906,923 3.0
100,001 – 500,000 91 22,509,467 6.2
500,001 – 1,000,000 23 16,454,689 4.5
1,000,001 and above 57 307,806,950 84.5
4,363 364,289,120 100.0
Capital gains tax
For shareholders wishing to calculate United Kingdom capital gains tax, the example below shows the effect on 100 shares at 
31 March 1982 after all subsequent capitalisations and subdivisions:
31.03.1982 100 Ordinary shares of 50p each (at market value of 445p per 50p share)
09.12.1983 (1 for 5 Cap.) 20 Ordinary shares of 50p each
120
12.12.1985 (1 for 6 Cap.) 20 Ordinary shares of 50p each
140
12.12.1985 (subdivision) 140 (50p to 25p)
280 Ordinary shares of 25p each
18.12.1987 (subdivision) 1,120 (25p to 5p)
1,400 Ordinary shares of 5p each
13.12.1989 (subdivision) 1,400 (5p to 2.5p)
2,800 Ordinary shares of 2.5p each
08.11.1999 (subdivision) 11,200 (2.5p to 0.5p)
14,000 Ordinary shares of 0.5p each
FTSE actuaries industry classification
The Photo-Me International plc share price is quoted in the ‘Media and Entertainment’ sector.
Investor relations website
Investor relations information, including share price, is available through the Company’s website www.photo-me.co.uk.
67 Photo-Me International plc 
Annual Report 2005
Shareholder information
Shareholder information Financial calendar
Annual General Meeting 28 September 2005
Half year results
(to 31 October 2005) Announcement in January 2006
Full year results
(to 30 April 2006) Announcement in June 2006
Dividend
Final(yearto30April2005) –ex-dividenddate 5October2005
– record date 7 October 2005
– payment date 2 November 2005
Transfer office and registration services
Lloyds TSB Registrars act on behalf of the Company. All shareholder enquiries, notifications of change of address, dividend
mandates, etc. should be referred to them at:
Lloyds TSB Registrars
The Causeway 
Worthing
West Sussex BN99 6DA
Tel: 0870 600 3970
Fax: 0870 600 3980
Lloyds TSB Registrars also offer a range of shareholder information on-line at www.shareview.co.uk
The Register of directors’ interests is maintained at the Registered Office at Bookham.
Copies of the Report and Accounts should be requested from:
Photo-Me International plc
Church Road
Bookham
Surrey KT23 3EU
Tel: 01372 453399
Fax: 01372 459064
e-mail: ir@photo-me.co.uk
68 Photo-Me International plc 
Annual Report 2005
Shareholder information Manufacturing
PMI’s Manufacturing business primarily comprises photo-processing equipment. 
The Grenoble (France) activity of Kis includes the R&D, design and manufacture 
of photobooths, primarily for use by the Vending division, and a range of minilabs
which are sold to retailers wishing to offer on-site photo-processing services. 
Volume production of such equipment has recently been sub-contracted to 
specialist manufacturers in low-cost territories (currently Poland and China). 
The Zurich-based subsidiary, Imaging Solutions, designs and builds high output
wholesale photo-processing machines.
h Imaging Solutions fastScan 20
At over 22,000 images per hour, the fastScan 20 is the
World’s fastest digital scanner of 35mm and APS films.
The fastScan allows wholesale photofinishers to print on
the fastPrint, to store or write to CD, all at very high
levels of productivity.
h Imaging Solutions fastPrint 20
The fastPrint 20 produces high quality colour prints at
speeds in excess of 20,000 prints per hour. Handling 
a range of inputs from scanned negatives, digital
cameras or other digital sources the printer uses more
than 2.2 million highly reflective mirrors to produce
quality colour prints on conventional photographic
paper. The fastPrint is used more widely by independent
labs all over the world than any other fast digital printer.
h DKS 1510 Minilab
The entry level minilab in the DKS 1500 range, with a
printing capacity of 800 prints per hour. As with other
DKS minilabs, red-eye reduction, enlargements,
calendars and white borders are among the many
premium rate services which can be offered.
h DKS 1530 Minilab
The DKS 1530 uses the same software, scanner 
and touch screen as the DKS 1550, but with an output
of 1,100 prints per hour.
h DKS 1550 Minilab
Winner of the DIMA award for the third successive year
at the prestigious PMA exhibition in the USA, the DKS
1550 can manipulate images from any digital or film
source (including 35mm, 120mm, APS, slides, digital
memory cards, CD’s, floppy disks and even existing
photos) and can print 1,500 photos per hour.
h DKS 900 Minilab
Launched in 2004, the DKS 900 is the first digital
minilab to offer thermal (dry process) technology.
Costing significantly less than a conventional minilab,
the DKS 900 offers a full range of printing services 
and is a fully expandable system, with an output of 
250-1,000 prints per hour.
h DKS Workstation
Used in conjunction with the DKS 1500 series of
minilabs, the DKS workstation acts as an additional
source of input of digital media and scanning of films, 
to increase productivity.
h e-Station
An instant digital media kiosk, ideally suited to a retail
environment. Can be networked to a digital minilab, or
connected via ADSL to a central laboratory, or can
operate as a stand-alone kiosk to create high quality
photos from all digital media. Consumers have the
ability to view, select and edit their digital photos 
before they print.
Vending
PMI’s Vending business comprises the operation of photobooths and other vending
equipment including digital media kiosks, photocopiers and express printing
machines, and increasing numbers of entertainment equipment and children’s rides.
With over 28,000 sited machines in 20 countries worldwide, PMI has a unique
maintenance and cash collection infrastructure.
h Photovision
Photovision combines the best of digital technology
image capture with the output being printed on Kodak
photographic paper. With Photo-Me’s usual view-before-
you-print system, Photovision has a proven track record
in ID photo provision.
h Minibooth
Fulfilling the needs for a compact solution, the
Minibooth offers photobooth convenience in a small
cabinet of under 0.9 square metres. It is also one of 
the fastest photobooths available, generating digital
prints in under one minute.
h Minibooth2
The latest generation Minibooth provides a full range 
of ID, portrait and ‘fun’ photos together with digital
printing services from cameras and mobile phones.
h ND 30
Developed for the Japanese market, the ND30 uses
digital technology, is compact in size and has extremely
fast printing, producing a photograph in as little as 
19 seconds.
h Digibooth
Using digital technologies, the Digibooth provides 
a range of ID, portrait and ‘fun’ photos or photographic
stickers. Prints are delivered in under one minute with
excellent results.
h Opera (Digital Media Kiosk)
A new concept in convenience printing that allows
digital camera users to print superb images from flash
memory and other digital inputs, as well as printing
camera phone pictures via infra-red and bluetooth links.
The images are all processed onto Kodak photographic
paper to give excellent archival quality.
h Symphonia (Digital Media Kiosk)
Offering similar services to the Opera but with a smaller
footprint, the Symphonia uses the latest thermal printing
technology. The prints are not only super sharp but are
also delivered in seconds.
h Symphonia 2 (Digital Media Kiosk)
The second generation of thermal Digital Media Kiosk
offers additional features (different print sizes, black and
white or sepia prints, white borders, etc.) and will be
built in volume in China.
Designed and produced by Radley Yeldar (London)
Environmental statement:
The Company’s commitment to environmental issues has been reflected in the production
of this Annual Report and Accounts. The cover and text pages are printed on Mega Matt,
using a chlorine free process, produced from 50% pre and post consumer waste. Nordic
Swan certified. Putting you in the picture
Photo-Me International plc Annual Report 2005
Photo-Me International plc
Church Road
Bookham
Surrey KT23 3EU
T el:     +44 (0)1372 453399
Fax:  +44 (0)1372 459064
Web: www.photo-me.co.uk
Contents
01 Financial highlights
02 Chairman’s statement
04 Chief executive’s review
20 Financial review
24 Board of directors and secretary
26 Report of the directors
28 Corporate governance
31 Remuneration report
35 Statement of directors’ responsibilities
35 Independent auditor’s report
36 Group profit and loss account
37 Balance sheets
38 Group cash flow statement
38 Notes to the cash flow statement
40 Group statement of total recognised gains and losses
40 Reconciliation of movements in shareholders’ funds
41 Notes on the accounts
64 Five year summery
65 Company information and advisors
66 Group executives
67 Shareholder information
PMI is a specialist digital imaging
company focused on professional
laboratories and end-consumer
vending solutions.
PMI has 28,000 vending locations
worldwide and is the world’s leading
operator of photobooths, with 
20,000 sited. PMI has started to 
roll-out Digital Media Kiosks which
enable digital camera users to fulfil
their instant imaging needs.
PMI manufactures a unique and
complete range of photo-processing
equipment covering all market
segments, from wholesale, via
specialist and general retail, to 
end-consumer kiosks.
Open here to view our
equipment range
p
Photo-Me International plc Annual Report 2005