putting you in the picture
photome international plc annual report 2005
photome international plc
church road
bookham
surrey kt23 3eu
t el     44 01372 453399
fax  44 01372 459064
web wwwphotomecouk
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 endconsumer
vending solutions
pmi has 28000 vending locations
worldwide and is the world’s leading
operator of photobooths with 
20000 sited pmi has started to 
rollout digital media kiosks which
enable digital camera users to fulfil
their instant imaging needs
pmi manufactures a unique and
complete range of photoprocessing
equipment covering all market
segments from wholesale via
specialist and general retail to 
endconsumer kiosks
open here to view our
equipment range
p
photome international plc annual report 2005
  manufacturing
pmi’s manufacturing business primarily comprises photoprocessing equipment 
the grenoble france activity of kis includes the rd 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 onsite photoprocessing services 
volume production of such equipment has recently been subcontracted to 
specialist manufacturers in lowcost territories currently poland and china 
the zurichbased subsidiary imaging solutions designs and builds high output
wholesale photoprocessing machines
h imaging solutions fastscan 20
at over 22000 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 20000 prints per hour handling 
a range of inputs from scanned negatives digital
cameras or other digital sources the printer uses more
than 22 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 redeye 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 1100 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 1500 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 
2501000 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 estation
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 standalone 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 28000 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 photome’s usual viewbefore
youprint 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 09 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 infrared 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 photoprocessing equipment 
the grenoble france activity of kis includes the rd 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 onsite photoprocessing services 
volume production of such equipment has recently been subcontracted to 
specialist manufacturers in lowcost territories currently poland and china 
the zurichbased subsidiary imaging solutions designs and builds high output
wholesale photoprocessing machines
h imaging solutions fastscan 20
at over 22000 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 20000 prints per hour handling 
a range of inputs from scanned negatives digital
cameras or other digital sources the printer uses more
than 22 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 redeye 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 1100 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 1500 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 
2501000 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 estation
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 standalone 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 28000 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 photome’s usual viewbefore
youprint 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 09 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 infrared 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
photome international plc annual report 2005
photome international plc
church road
bookham
surrey kt23 3eu
t el     44 01372 453399
fax  44 01372 459064
web wwwphotomecouk
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 endconsumer
vending solutions
pmi has 28000 vending locations
worldwide and is the world’s leading
operator of photobooths with 
20000 sited pmi has started to 
rollout digital media kiosks which
enable digital camera users to fulfil
their instant imaging needs
pmi manufactures a unique and
complete range of photoprocessing
equipment covering all market
segments from wholesale via
specialist and general retail to 
endconsumer kiosks
open here to view our
equipment range
p
photome international plc annual report 2005
  01 photome international plc 
annual report 2005
financial highlights
7 3
t urnover 2005 £2360m 
2004 £2199m
620
adjusted profit before tax 2005 £345m 
2004 £213m
547
adjusted basic earnings per share 2005 628p 
2004 406p
1000
dividends per share 2005 20p 
2004 10p
£1 2m
net cash 2005 £41m 
2004 £29m
financial highlights

’adjusted’ excludes an exceptional charge of £08m
2004 exceptional credit of £04m and a goodwill
amortisation charge of £07m 2004 £05m in the 
case of adjusted eps a tax credit on the exceptional
charge of £03m is also reflected in respect of 2005
   02 photome 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 pretax
profit and earnings per share”  03 photome 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 pretax profit and
earnings per share 
the adjusted pretax profit which totals £345m 
has again exceeded market expectations 
prospects for further progress remain good
financial overview
on turnover up 73 at £2360m adjusted pretax profit
increased by 620 to £345m – a record by a wide
margin adjusted basic earnings per share were 547
higher at 628p reflecting an increased effective tax rate
“ adjusted” excludes an exceptional charge in connection
with restructuring in japan of £08m 2004 exceptional
credit of £04m and a goodwill amortisation charge of
£07m 2004 £05m the reported figures are a pretax
profit of £330m 2004 £211m up 564 and eps of
596p 2004 401p up 486
after £345m of capital expenditure and financial
investment net cash balances increased to £41m 
from £29m
dividends
a final dividend per share of 12p 2004 10p 
is proposed t ogether with the interim dividend of 
08p 2004 nil dividends per share are doubled at
20p 2004 10p 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 exdividend date is 5 october 2005 
business overview
in the vending division which has an unrivalled network
of 28000 sites worldwide operating profit improved
although turnover decreased by 24
manufacturing turnover increased by 248 to 
£980m representing 42 2004 36 of total 
turnover manufacturing contributed the bulk of the 
pretax profit and its increase benefiting from increased
volumes and higher margins following the transfer of
minilab manufacture to a subcontractor 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 nonexecutive director and has been
appointed life president 
subsequent to the year end on 1 june 2005 david
scotland resigned as a nonexecutive director having
made a valuable contribution during his four years in that
role he is succeeded by hugo swire who brings to the
board wideranging experience in business development
in international markets 
employees
on behalf of my fellow directors i would like to thank
pmis employees who number more than 1600
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 rollout 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 photome 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 photome 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 pretax 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
subcontractor 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 yearend production was transferred to a sub
contractor in china thereby reducing costs significantly
the volume rollout 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
pretax 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 73 increase in group
turnover was the net of a small decrease in vending and
a 248 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 2000 to 28000 including
some 20000 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 24 
its contribution to profits however improved and it again
generated substantial cashflow
geographical analysis of turnover and profit
turnover pretax profit
†
2005 2004 variance 2005 2004 
year to 30 april £m £m £m £m
continental europe 1415 1308 82 306 173
uk  republic of ireland 609 540 126 03 27
asia and australia 308 312 –14 30 11
usa 28 39 –291 – 03
2360 2199 73 339 208
†before exceptional items
divisional analysis of turnover
2005 2004 variance
year to 30 april £m £m 
vending 1380 1414 –24
manufacturing 980 785 248
2360 2199 73 06 photome international plc 
annual report 2005
chief executive’s review
geographical analysis
vending turnover in france with 9300 sites including
5900 photobooths of which 98 are digital increased
by 1 the increase in the number of sites from 8500
last year reflects the siting of digital media kiosks
demand for id photographs in france will be boosted by
the planned introduction of photoidentity on personal
national health cards resulting in 48 million replacement
cards from calendar 2006
vending turnover in the uk and ireland with 9300 sites
including 5600 photobooths of which 78 are digital
was flat the increase of 1000 sites over the year mainly
reflects expansion in the area of kiddie rides
vending turnover in japan with 4700 sites including
4600 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 onethird reducing annual costs by
£15m 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 rollout 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 3000 had been manufactured 1600 had been
sold and 1400 were operated by pmi of which 1000 in
france t o date results have been encouraging
the manufacture in china of thermal ie dry process
digital media kiosks commenced in may 2005 and by 
31 december 2005 it is planned that 5000 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 photoprocessing equipment
manufactured by pmi or increasingly by subcontractors
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
endconsumer vending kiosks in output terms
processing labs range from 250 to 20000 prints per hour
this division increased its turnover by 248 in the full
year in the second half the increase was 405
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 20000 prints per hour 
in the year imaging solutions increased its turnover by
169 to £159m 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 1500 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 photoprocessing retailer
respectively margins benefited from the full year effect
of the move of production to pmi’s subcontractor in
poland flextronics in january 2004 
t rialling of pmi’s minilabs in north america continues
satisfactorily  07 photome 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 1000
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 cameraphone
customers
manufacture of digital media kiosks in grenoble france
ceased in april 2005 and commenced at a subcontractor
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 28000 sited machines worldwide with related
arrangements for maintenance and cash collection 
this network greatly facilitates the rollout 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 rollout of lower cost
chinesemanufactured 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 marketleading
products
strategic objectives
pmi has reached a steppingstone financially with its 
net cash balance and strong cash generation and
commercially with its extensive vending network
principally imagingbased 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 photoprocessing equipment 
serge crasnianski
chief executive officer 08 photome international plc 
annual report 2005
vending
pmi through its whollyowned subsidiary nippon auto
photo kk has been successfully operating in japan for
over 43 years throughout this period it has been the
market leader in the coinoperated photobooth market
the 4600 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 autophoto will increase the number of
photobooths it operates to more than 6000 within 
the next two years
our thinking
p 09 photome international plc 
annual report 2005
vending
over the last two years nippon autophoto 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 photome international plc 
annual report 2005
vending
our uk aim
p
pmi with its everevolving and everexpanding range of
equipment is able to meet the most demanding needs
in the uk pmi is often viewed as a onestop solution for
retailers’ vending product requirements
our long term experience of working with our 
siteowners our nationwide coverage and our advanced
communications and service support systems combine 
to ensure that our equipment operates at maximum
efficiency 11 photome 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 standalone digital media kiosk 
vending equipment pmi is well positioned to 
consolidate its position in the rapidly growing digital
photoprinting market
1400 digital media kiosks were operated by the 
group by april 2005 1000 of these are located in 
france and have generated encouraging revenues
12 photome 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
5000 of the secondgeneration digital media kiosks are
to be supplied for operation by the group or for sale by
december 2005
13 photome international plc 
annual report 2005
vending
is facilitating future growth 14 photome 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 photome 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 photome international plc 
annual report 2005
manufacturing
our rdp
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 rd
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 rd team has kept the
group at the cutting edge of innovation 17 photome 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 photome international plc 
annual report 2005
manufacturing
our progress
p
our photo processing equipment ranges from our fastest
minilab which produces 1500 prints per hour to our
wholesale labs which work at 20000 prints per hour 
and more this past year has seen the introduction of our
new fastprint 20 which outputs at over 20000 images
per hour at a high resolution of 300 dpi 19 photome international plc 
annual report 2005
manufacturing
is keeping our machines the fastest
f fastscan 20
capable of processing more than 22000 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 20000 per hour the fastprint 20 is one 
of the fastest digital printers in the world 20 photome 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 photome 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 2360 2199 73
ebitda £m† 589 521 129
operating profit £m† 358 228 572
pbt £m† 345 213 620
basic earnings per share p† 628 406 547
dividends per share p 200 100 1000
† excluding exceptional items and where appropriate goodwill amortisation
the turnover figure up 73 on the previous year was a record
demonstrating the usual strength of pmi’s cash generation ebitda before exceptional items was £589m 2004
£521m this represents 250 of turnover – a high proportion
adjusted operating profit increased by 572 to £358m 2004 £228m “ adjusted” excludes an exceptional charge 
in connection with restructuring in japan of £08m 2004 exceptional credit of £04m and a goodwill amortisation
charge of £07m 2004 £05m the adjusted operating margin increased to 152 2004 104
the net interest charge reduced to £13m 2004 £15m 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 57 2004 46 and the average gross debt was £295m 2004 £369m
adjusted pretax profit advanced by 620 to £345m 2004 £213m
adjusted eps were 547 higher at 628p 2004 406p reflecting an increased effective tax rate of 326 
2004 285
the reported figures are an operating profit of £343m 2004 £223m up 539 a pretax profit of £330m 
2004 £211m up 564 and eps of 596p 2004 401p up 486 
on both adjusted and reported bases the pretax profit was a record by a wide margin
the adjusted pretax profit in the second half traditionally the weaker half of the year for vending of £162m 
compared with £63m in 2004 and a pretax loss of £33m 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 207 to 
£835m  2004 £691m whilst shareholders’ funds less intangible assets totalled £592m 2004 £477m 
the largest individual asset category remains fixed assets the £964m of fixed assets can be analysed as to £719m
tangible assets £242m intangible assets and £03m investments t angible assets include £579m of operating
equipment notably £410m of photobooths and £111m 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 £998m 2004 £874m they are represented by in order of value debtors stocks cash at
bank and in hand and investments and shortterm deposits the principal reason for the increase in current assets is the
increase in debtors to £427m from £323m which reflects the increase in manufacturing turnover towards the end of
the year
cash and borrowings 
the net cash balance rose to £41m 2004 £29m after capital expenditure and financial investment of £345m 
2004 £210m  this was principally in the following areas  digital media kiosks £121m photobooths £109m the
purchase of kiddie ride activities which leverage off pmi’s uk infrastructure £22m and the acquisition of the 303
minority interest in pmi’s german subsidiary fotofixschnellphotoautomaten gmbh £25m
the year end net cash of £41m compares with net cash of £29m at 30 april 2004 net debt of £334m at 30 april 2003
and net debt of £514m at 30 april 2002 this remarkable turnaround reflects the cashgenerative 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 photome international plc 
annual report 2005
financial review
funding and treasury policy 
the £12m improvement in net cash is explained in the following summarised cash flow statement
2005 2004
£m £m
opening net cashdebt 29 334
gross cash inflow 583 528
working capital movement 65 59
returns on investments and servicing of finance 13 16
tax 59 11
capital expenditure and financial investment 345 210
acquisitions and disposals 25 02
dividends 65 –
other movements – net 01 15
closing net cash 41 29
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 shortterm debtors and creditors are not financial instruments
that play a significant medium to longterm 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 62000 sqft 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 photome 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 £341m  2004
£350m of undrawn committed facilities were available at 30 april 2005 161 2004 153 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
jeanluc peurois
group finance director 24 photome international plc 
annual report 2005
board of directors and secretary
board of directors and secretary
1 vernon sankey
nonexecutive chairman
age 56 elected to the board in 2000 appointed
chairman on 1 february 2005 the deputy chairman 
and senior independent nonexecutive 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 photome international plc in 1990 chief executive
officer since 1998 member of the nomination
committee
3 jeanluc peurois 
group finance director
age 47 joined kis in 1985 elected to the board 
of photome 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 autophoto kk
5 françois giuntini 
executive director
age 58 joined kis in 1986 elected to the board 
of photome 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
nonexecutive director
age 76 joined the group in 1961 elected to the board
in 1968 executive chairman from 1992 nonexecutive
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 mcnairwilson
nonexecutive 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
19641966 and new forest 19681997
8 hugo swire
nonexecutive 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
nonexecutive 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 photome 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 photome 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 coinoperated automatic photobooths
for identification and fun purposes copiers express print services and children’s rides together with the manufacture including by
subcontractors and sale of photoprocessing 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 12p 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 exdividend date 5 october 2005 this together with the
interim dividend of 08p per share paid on 8 april 2005 makes a total dividend for the year of 20p 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 £9264000 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 photoprocessing 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
photome 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 transportrelated 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 underage sales of agerestricted 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
wwwvalidateukcouk or infovalidateukcouk
report of the directors
26 photome 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 reelection 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
mcnairwilson and francis wahl riccardo costi and francis wahl offer themselves for reelection
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 71143070 1953
fidelity international ltd 54637855 1499
the capital group companies inc 17400000 478
morgan stanley securities ltd 13993813 384
the goldman sachs group inc 11056462 304
authority to purchase shares
the company was given authority at the 2004 annual general meeting to make market purchases of up to 18212618 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
36428912 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 reappoint 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 photome 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 nonexecutive chairman the chief executive officer three other
executive directors and a further four nonexecutive 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 nonexecutive director vernon sankey previously
deputy chairman was appointed chairman on that date david scotland a nonexecutive 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 decisionmaking process
the company readily acknowledges that certain nonexecutive directors dan david sir patrick mcnairwilson 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 mcnairwilson 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 scotlanduntil his resignation and hugo swire appointed on david scotland’s resignation are independent nonexecutives
thus the company has had until vernon sankey’s appointment as chairman two independent nonexecutive directors and has
three nonexecutive 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 nonindependent nonexecutive 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 nonexecutive 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 nonexecutive
director has been selected pending the appointment of additional independent nonexecutive directors
sir patrick mcnairwilson will be retiring from the board at the 2005 annual general meeting at around that time it is intended
that additional independent nonexecutive 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 newlyappointed 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 reelection 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
nonexecutive 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 nonexecutive director following the recent appointment of a new chairman his
effectiveness will be assessed in future years by the senior independent nonexecutive 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 nonexecutive directors on an informal basis such meetings will be formalised going forward
the board usually meets five or six times a year and adhoc 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 decisionmaking relating to operational matters is delegated to senior
management
corporate governance
28 photome 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 na na 1
r costi 4 na na na
f giuntini 4 na na na
j l peurois 5 na na na
d david 4 na na 1
p mcnairwilson 5 2 1 1
d scotland 4 0 0 na
f wahl 3 1 1 na
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 nonexecutive 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 nonexecutive 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 nonexecutive 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 noncompliance 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 mcnairwilson 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 nonexecutive directors to prepare a description
of the role and the capabilities required and to utilise external search consultants
29 photome 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 nonexecutive
director vernon sankey met with shareholders during the period the senior nonexecutive director and where appropriate other
nonexecutive 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 coordinating 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 nonexecutive directors were not independent as defined by the code
– the remuneration and audit committees do not comprise only independent nonexecutive directors and the nomination
committee does not contain a majority of independent nonexecutive directors there is no member of the audit committee with
recent and relevant financial experience
– nonexecutive 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 “whistleblowing” procedure in place
– some existing overseas service contracts for directors contain notice periods of more than one year
30 photome 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 nonexecutive 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 nonexecutive 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 mcnairwilson
david scotland
francis wahl 
the board acknowledges that sir patrick mcnairwilson due to a past business relationship with the group and francis wahl
due to length of service as a nonexecutive 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 performancerelated 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 pretax 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 sharebased longterm 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 photome executive share option scheme the “scheme” which will operate as the sole longterm
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 epsbased 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 photome 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 epsbased
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 jeanluc peurois are
members of the plan company contributions at the rate of 5 of their basic uk salaries were 
2005 2004
£ £
serge crasnianski 4870 4791
françois giuntini 960 939
jeanluc peurois 3357 3285
9187 9015
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
jeanluc peurois 23 october 2000
the overseas service contracts of françois giuntini and jeanluc 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 autophoto 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 nonexecutive 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 nonexecutive director with no service contract on
similar terms as other nonexecutive directors the only difference to other nonexecutive directors is that dan david is to be 
paid an additional £1000 per annum and will continue to benefit from private health insurance in recognition of his position as 
life president 
none of the nonexecutive directors are appointed for a specified term and none have service contracts although they are subject
to reelection by shareholders at least every 3 years as are the executive directors none of the nonexecutive directors will be
entitled to compensation upon termination of their involvement with the company
nonexecutive directors’ fees
the fees of the nonexecutive directors are determined by the executive directors taking into account the level of fees paid by
companies of a similar size and standing nonexecutive 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 photome 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 casebycase 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 402308 196052 10428 608788 401725
riccardo costi 142892 36994 2267 182153 150157
françois giuntini 152315 32728 1236 186279 132148
jeanluc peurois 251418 122612 1236 375266 246510
nonexecutive directors
vernon sankey 90000 – – 90000 80000
dan david 34 117729 – 4607 122336 118249
sir patrick mcnairwilson 25000 – – 25000 25000
peter ogborne 5 –– –– 12812
david scotland 25000 – – 25000 25000
francis wahl 25000 – – 25000 25000
philippe wahl 6 – – –– 10960
1231662 388386 19774 1639822 1227561
notes
1 benefits can include a company car private medical insurance and life assurance
2 the amounts stated above include an amount of £446758 2004 £292205 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 £92378 2004 £89053 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 nonexecutive director he retired from his nonexecutive 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 £12885 in the year
to 30 april 2005 2004 £12188
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 900000 shares of dan david’s interests at 30 april 2005 and 20 june 2005 which are
considered to be nonbeneficial 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 123177 123177 123177 – 123177
serge crasnianski 1 71143070 71143070 63750 71079320 71143070
dan david 2000000 2900000 – 2900000 2900000
françois giuntini 407540 407540 407540 – 407540
sir patrick mcnairwilson 2400 2400 – 2400 2400
jeanluc peurois 207540 207540 207540 – 207540
vernon sankey 64000 64000 – 64000 64000
david scotland 2 17000 17000 na na na
hugo swire 3 na na – ––
francis wahl 2000 2000 – 2000 2000
1 the interests of serge crasnianski include 71079320 shares which are owned by tibergest investments bv 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 photome 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 175000 7420p 8 sep 2003 7 sep 2007
200000 3533p 10 jan 2007 9 jan 2011
500000 1833p 13 dec 2007 12 dec 2011
françois giuntini 125000 7420p 8 sep 2003 7 sep 2007
200000 3533p 10 jan 2007 9 jan 2011
135000 13850p 13 feb 2009 12 feb 2013
jeanluc peurois 250000 3533p 10 jan 2007 9 jan 2011
750000 1833p 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 £214000 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 9475p 2004 1190p the highest and
lowest middle market prices of an ordinary share during the year to 30 april 2005 were 12275p and 835p 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 photome 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 photome 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
photome 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 photome international plc 
annual report 2005
statement of directors’ responsibilitiesindependent auditor’s report
statement of directors’ responsibilities
independent auditor’s report
to the members of photome 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 236054 219949
less share of turnover of joint venture 82 –
group turnover – continuing operations 2 235972 219949
cost of sales 176013 177826
exceptional cost of sales 3 816 –
total cost of sales 176829 177826
gross profit 59143 42123
administrative expenses 26256 20847
other operating income 1468 983
operating profit – continuing operations 34355 22259
share of operating loss of joint venture 78 –
share of operating profit of associates 34 32
total operating profit 34311 22291
profit on the sale of a joint venture 3 – 358
profit on ordinary activities before interest 34311 22649
interest receivable 415 195
interest payable 3 1689 1714
profit on ordinary activities before taxation 3 33037 21130
tax charge on profit on ordinary activities 11253 6018
tax credit on exceptional item 5 343 –
total tax charge 5 10910 6018
profit on ordinary activities after taxation  22127 15112
minority interests
– equity interests 389 535
– nonequity interests 18 19
profit attributable to members of the holding company 21720 14558
dividends – equity interests 7 7285 3643
retained profit for the year 14435 10915
earnings per share
basic earnings per share 8 596p 401p
adjusted basic earnings per share
†
8 628p 406p
diluted earnings per share 8 590p 397p
adjusted diluted earnings per share
†
8 621p 402p    
†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 200p 100p
36 photome international plc 
annual report 2005
group profit and loss account
for the year ended 30 april 2005
group profit and loss account 37 photome international plc 
annual report 2005
group company
2005 2004 2005 2004
note £’000 £’000 £’000 £’000
fixed assets
intangible assets 9 24231 21395 – –
tangible assets 10 71856 63971 17284 18210
investments 11 260 282 32593 30127 
96347 85648 49877 48337 
current assets
stocks 12 23126 23018 5402 3170
debtors 13 42728 32345 12557 12855
investments and shortterm deposits 14 14278 13983 – –
cash at bank and in hand 19637 18026 715 140
99769 87372 18674 16165
creditors
amounts falling due within one year 15 78292 68649 48996 40649
net current assetsliabilities 21477 18723 30322 24484 
total assets less current liabilities 117824 104371 19555 23853
creditors
amounts falling due after more than one year 15 18477 17651 13023 14355
99347 86720 6532 9498
provision for liabilities and charges
provisions 17 4760 6323 250 101
provision for joint venture deficit
– gross assets 461 – – –
– gross liabilities 546 – – –
18 85 – – –
deferred taxation 19 9075 8747 – –
13920 15070 250 101
85427 71650 6282 9397
minority interests
– equity interests 1187 1713 – –
– nonequity interests 764 803 – –
83476 69134 6282 9397
capital and reserves
calledup share capital 20 2022 2022 2022 2022 
reserves
share premium account 21 3487 3487 3487 3487 
other reserves 21 2806 2765 – –
profit and loss account 21 75161 60860 773 3888
83476 69134 6282 9397
shareholders’ funds are attributable to
equity interests 83275 68933 6081 9196
nonequity interests 201 201 201 201
83476 69134 6282 9397
the accounts were approved by the board on 20 june 2005
serge crasnianski jeanluc peurois
chief executive officer group finance director
balance sheets
as at 30 april 2005
balance sheets 38 photome international plc 
annual report 2005
2005 2004
note £’000 £’000
net cash inflow from operating activities a 51827 58743
dividends from associated undertakings 55 26
returns on investments and servicing of finance b 1301 1553
taxation b 5912 1102
capital expenditure and financial investment b 34529 20979
acquisitions and disposals b 2456 154
dividends paid – equity shareholders 6557 –
cash inflow before use of liquid resources and financing 1127 34981
management of liquid resources b 292 12876
financing b 3674 15103
increase in cash in the year 4509 7002
reconciliation of net cash flow to movement in net cashdebt c
increase in cash in the year 4509 7002
repayment of capital element of finance leases 622 2151
cash flow from increasedecrease in debt 4286 13942
cash flow from increase in liquid resources                                                292 12876
change in net cashdebt resulting from cash flows 1137 35971
foreign exchange translation differences 1 355
movement in net cashdebt in the year 1138 36326
opening net cashdebt 2925 33401
closing net cash c 4063 2925
a reconciliation of operating profit to operating cash flow
2005 2004
£’000 £’000
operating profit 34355 22259
depreciation and amortisation charges 23684 29863
loss on sale of assets 128 467
other noncash movements 142 200
gross cash inflow 58309 52789
increase in stocks 142 3422
increase in debtors 9244 7058
increase in creditors 4397 15162
decreaseincrease in provisions 1493 1272
net cash inflow from operating activities 51827 58743
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 statementnotes 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 1665 1623
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 1301 1553
taxation
uk corporation tax paid 597 507
overseas tax paid 5315 595
net cash outflow for taxation 5912 1102
capital expenditure and financial investment
purchase of intangible assets 6574 7735
purchase of tangible assets 29437 13895
purchase of other investments 20 1
sale of tangible assets 1502 652
net cash outflow for capital expenditure and financial investment 34529 20979
acquisitions and disposals
purchase of shares from minority interests 2454 154
purchase of joint venture 2 –
net cash outflow for acquisitions and disposals 2456 154
management of liquid resources
net decreaseincrease of liquid resources 2500 11221
net movement in term deposits 2792 1655
net cash outflow from management of liquid resources 292 12876
financing
issue of ordinary shares – 764
share capital in subsidiary undertakings contributed by minorities 10 226
debt due within one year – increase in shortterm borrowings 256 14
– repayment of shortterm borrowings 8674 11996
debt due after one year – increase in longterm borrowings 13270 21
– repayment of longterm borrowings 566 1981
– capital element of finance lease rental payments 622 2151
net cash inflowoutflow from financing 3674 15103
c analysis of net cashdebt
other
at exchange noncash at
1 may 2004 cash flow movement changes 30 april 2005
£’000 £’000 £’000 £’000 £’000
cash at bank and in hand 18026 1692 81 – 19637
overdrafts 56742817–– 2857
4509
debt due after one year 14342 12704 57 11124 15865
debt due within one year 8436 8418 22 11124 11120
financeleases 632622–– 10
3664
current asset investments and shortterm deposits 13983 292 3 – 14278
total 2925 1137 1 – 4063
39 photome international plc 
annual report 2005
notes to the cash flow statement 40 photome international plc 
annual report 2005
2005 2004
£’000 £’000
profit attributable to shareholders 21720 14558
exchange and other adjustments 93 2476
total recognised gains and losses for the year 21627 12082
group statement of total recognised gains and losses
for the year ended 30 april 2005
group statement of total recognised gains and lossesreconciliation of movements in shareholders’ funds
2005 2004
£’000 £’000
profit for the financial year before dividends 21720 14558
dividends 7285 3643
exchange and other adjustments 93 2476
shares issued – 764
net movements in shareholders’ funds 14342 9203
opening shareholders’ funds 69134 59931
closing shareholders’ funds 83476 69134
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 yearended 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 longterm 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 nonmonetary 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 writtenoff 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 photome 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 writeoff 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 – 125 – 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 shortterm 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 offset 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 photome 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 writtenoff
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 firstin firstout basis
workinprogress 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 shortterm 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 110286 82448
sales of capital equipment to group undertakings for own use 12272 3889
sales to third parties 98014 415 78559 357
vending 137958 585 141390 643
total sales to third parties 235972 1000 219949 1000
2005 2004
geographical analysis by origin £’000  £’000 
continental europe 141526 600 130765 595
united kingdom and republic of ireland 60870 258 54035 246 
asia 30782 130 31210 141
united states of america 2794 12 3939 18
235972 1000 219949 1000 
sales of capital equipment to group undertakings of £12272000 2004 £3889000 originates from continental europe and has
been excluded from the geographical analysis by origin
43 photome 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 30547 902 30547 17344 821
united kingdom and republic of ireland 299 09 299 3016 143
asia and australia 3007 89 2191 1096 52
united states of america –– – 326 16
33853 1000 33037 21130 1000
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 4327 4080
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 17125 22984
– leased 1133 1934 
operating lease rentals – plant and machinery 1377 1365
– land and buildings 13152 11803 
own work capitalised 12272 3889
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 chargecredit
2005 2004
£’000 £’000
exceptional restructuring costs 816 –
the exceptional item of £816000 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
nonoperating exceptional items
2005 2004
£’000 £’000
profit on disposal of joint venture – 358 
the nonoperating exceptional item for 2004 relates to the profit on disposal of the joint venture digital portal inc
44 photome international plc 
annual report 2005
notes on the accounts fire loss
on 22 december 2004 the group’s 62000 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 restock have been recognised in working capital
cash flows within the cash flow statement
interest payable
2005 2004
£’000 £’000
bank loans and overdrafts 1557 1239
other loans 108 384
finance leases and hire purchase agreements 15 91
joint venture 9 –
1689 1714
4 employees
the average number of employees worldwide during the year including executive directors comprised
2005 2004
full time 1498 1546
part time 173 273
1671 1819
staff costs during the year for the above persons amounted to
2005 2004
£’000 £’000
wages and salaries 41033 39568
social security costs 9402 9488
other pension costs 
– defined benefit scheme 111 126
– defined contribution schemes 453 499
50999 49681
directors’ emoluments
details of directors’ remuneration and share options are given in the remuneration report on pages 31 to 34
45 photome 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 2473 1564
– prior years 360 34
2113 1530
– double taxation relief 2039 4
74 1526
overseas taxation
– current year 10452 3022
– prior years 100 472
10352 2550 
share of associates’ taxation 8 5
total current tax 10434 4081
deferred taxation
origination and reversal of timing differences – current year uk 115 542
overseas 536 3051
changes in tax rates – current year overseas 19 44
total deferred tax – current year 402 2553
adjustments to estimated recoverable amounts of deferred tax assets arising in previous years uk 74 616
total deferred tax 476 1937
tax charge on profit on ordinary activities 10910 6018 
the tax credit on the exceptional item amounts to £343000 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 3491 
2004 3344
the differences are explained below
2005 2004
£’000 £’000
profit on ordinary activities before taxation 33037 21130
profit on ordinary activities multiplied by weighted average rate of corporation tax in the group 
of 3491 2004 3344  11533 7066
effects of
goodwill amortisation not deductible for tax 204 200
fixed asset timing differences 1632 255
other timing differences 
– research and development 682 1236
– movement on provisions 136 1222
– other shortterm timing differences 1702 350
income not taxableexpenses not deductible for taxation purposes 546 167
unrelievedrelieved losses 179 293
adjustments to tax in respect of prior periods 460 506
current tax charge per accounts 10434 4081 
6 profit of the holding company
of the profit for the financial year a profit of £4170000 2004 £1327000 is dealt with in the accounts of photome
international plc
7 dividends
dividends on equity – ordinary shares
2005 2004
£’000 £’000
interim dividend paid of 08p per share 2004 nil 2914 –
proposed final dividend of 12p per share 2004 10p 4371 3643
20p per share 2004 10p 7285 3643
the deferred shares have no dividend rights
46 photome 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 21720 364253 596 14558 363387 401 
effect of dilutive securities
options 3921 3613
diluted earnings per share 21720 368174 590 14558 367000 397
basic earnings available to shareholders 21720 14558
adjustment for exceptional items 816 358
adjustment for tax on exceptional items 343 –
adjustment for goodwill amortisation 676 545
adjusted earnings available to shareholders 22869 14745
adjusted earnings per share
basic 22869 364253 628 14745 363387 406
diluted 22869 368174 621 14745 367000 402
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 10586 302 23509 1388 35181
exchange adjustment 2 – 14 2 18
additions 1762–6366–8128
at 30 april 2005 12350 302 29889 1390 43327
amortisation
at 1 may 2004 2602 302 10864 622 13786
provided during year 676 – 4327 307 5310
at 30 april 2005 3278 302 15191 929 19096
net book value
at 30 april 2005 9072 – 14698 461 24231
at 1 may 2004 7984 – 12645 766 21395
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 photome 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 22012 223309 26331 271652
exchange adjustment 41 1644 14 1699
reclassification –6215391
additions 42827119188929436
disposals 202841044541548487
at 30 april 2005 20371 207802 22638 250811
depreciation
at 1 may 2004 12031 175085 20565 207681
exchange adjustment 25 1300 12 1337
reclassification – 62 32 30
provided during year 899 14813 2662 18374
disposals 179838805519045793
at 30 april 2005 11107 149855 17993 178955
net book value
at 30 april 2005 9264 57947 4645 71856
at 1 may 2004 9981 48224 5766 63971
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 £25000 2004 £1148000 the depreciation charge on these assets was £ 1133000
2004 £1934000
company
cost
at 1 may 2004 2669 74908 5462 83039
additions – external – 6170 515 6685
additions – intra group – 285 – 285
disposals – external 291 17730 4051 22072
disposals – intra group – 240 – 240
at 30 april 2005 2378 63393 1926 67697
depreciation
at 1 may 2004 1207 58861 4761 64829
provided during year 67 5689 471 6227
disposals – external 224 16518 3900 20642
disposals – intra group – 1 – 1
at 30 april 2005 1050 48031 1332 50413
net book value
at 30 april 2005 1328 15362 594 17284
at 1 may 2004 1462 16047 701 18210
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 7208 7808 1328 1462
short leasehold 1944 2058 – –
long leasehold 112 115 – –
9264 9981 1328 1462 
48 photome 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 2345 2618
exchange adjustment 19 – 19
retained reserves 23 – 23
additions – 20 20
disposals – 118 118
at 30 april 2005 231 2247 2478
provision
at 1 may 2004 – 2336 2336
disposals – 118 118
at 30 april 2005 – 2218 2218
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 sa 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 35297 – 373 895 36565
additions 24642––2466
disposals 67––118185
at 30 april 2005 37694 2 373 777 38846
provision
at 1 may 2004 5543 – – 895 6438
disposals 67––118185
at 30 april 2005 5476 – – 777 6253
net book value
at 30 april 2005 32218 2 373 – 32593
at 1 may 2004 29754 – 373 – 30127
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 photome australia pty ltd
49 photome 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 15618 18587 3707 3151
workinprogress 1207 1355 – –
finished goods 6301 3076 1695 19 
23126 23018 5402 3170
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 33365 20772 4642 3448 
amount owed by group undertakings – – 5800 7805 
amount owed by joint venture 548 – 168 –
amount owed by associated undertakings 102 1 1 1
corporation tax 126 383 – –
deferred tax debtor 955 1119 955 885 
other debtors 4677 6892 479 332
prepayments and accrued income 2955 3178 512 384 
42728 32345 12557 12855 
included within group debtors are amounts due after one year in respect of deferred taxation of £955000 2004 £1119000
other debtors of £963000 2004 £947000 and prepayments and accrued income of £38000 2004 £45000
included within company debtors are amounts due after one year in respect of deferred taxation of £995000 2004 £885000
14 current asset investments and shortterm deposits
group company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
investments 8750 11251 – –
bank deposits 5528 2732 – –
liquid resources 14278 13983 – –
liquid resources comprise shortterm 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 photome 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 11120 8436 6243 4342
bank overdrafts 2857 5674 2661 5104 
trade creditors 21443 24439 5331 2889 
amount owed to group undertakings – – 18982 20496
lease creditors 4 614 – –
current corporation tax 9843 5592 665 1330
other taxes and social security costs 4445 3227 2315 907 
proposed dividend 4371 3643 4371 3643
other creditors 14038 10945 3653 353 
accruals and deferred income 10171 6079 4775 1585 
78292 68649 48996 40649
amounts falling due after more than one year
loans 15865 14342 5750 6993 
amounts owed to group undertakings – – 7273 7362 
lease creditors 6 18 – –
other creditors 2 2 – –
accruals and deferred income 2604 3289 – –
18477 17651 13023 14355
the group has secured bank loans totalling £3819000 2004 £1635000 on various freehold properties trade marks and current
asset investments
loans repayable after 5 years totalling £nil 2004 £566000 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 4261 6589 1159 558
in 2nd to 5th years inclusive 6836 3102 1297 448 
over 5 years 51 27 51 27 
11148 9718 2507 1033
other
leases expiring
within one year 208 377 92 117 
in 2nd to 5th years inclusive 1223 602 579 376 
1431 979 671 493
total
leases expiring
within one year 4469 6966 1251 675 
in 2nd to 5th years inclusive 8059 3704 1876 824 
over 5 years 51 27 51 27 
12579 10697 3178 1526 
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 photome international plc 
annual report 2005
notes on the accounts 16 financial instruments
a shortterm 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
shortterm 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 14701 14701 – –
euros 13938 11322 10 2606
us dollars 619 – 619 –
yen 3790 – 3790 –
at 30 april 2005 33048 26023 4419 2606
sterling 1638316383––
euros 12722659522703857
us dollars 689 – 689 –
yen 3217–3217–
at 30 april 2004 33011 22978 6176 3857
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 shortterm 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 £590000 2004 £636000
the company has in issue 8040000 2004 8040000 deferred shares with a nominal value of £201000 2004 £201000 which
are nonequity 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 60 16
us dollars 50 15
yen 33 21
at 30 april 2005 21
euros 47 15
us dollars 69 16
yen 25 24
at 30 april 2004 20
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 photome 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 shortterm longterm other bank and shortterm longterm 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 5371 10291 992 29 16683 4676 13619 984 9 19288
swiss francs 660 831 9 – 1500 2545 364 8 – 2917
us dollars 9310 3156 – – 12466 6042 – – – 6042
yen 3574 – – – 3574 4086 – – – 4086
other currencies 119 – – – 119 224 – – – 224
19637 14278 1001 29 34945 18026 13983 992 9 33010
investments and shortterm deposits consist of deposit accounts and other shortterm liquid investments surplus funds are invested
in accordance with approved limits on security and liquidity generally these are of a shortterm nature and earn interest based on
current interest rates for such instruments
cash at bank and in hand includes noninterest earning cash and cash in transit
other investments consist of investments in equity these are held for the longterm 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 shortterm 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 13977 4 – 13981 14110 614 – 14724
between one and 2 years 11066 6 767 11839 9999 – 850 10849
between 2 and 5 years 4799 – 1839 6638 3777 18 2441 6236
over 5 years – – 590 590 566 – 636 1202
29842 10 3196 33048 28452 632 3927 33011
e borrowing facilities
the group has undrawn committed facilities available to it at 30 april 2005 of £34078000 2004 £34995000 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
shortterm borrowings 13977 13977 14110 14110
longterm borrowings 15865 15788 14342 13399
longterm creditors 2606 2407 3292 3065
finance leases 10 10 632 632
minority nonequity interests 590 557 636 617
investments and shortterm deposits 14278 14278 13983 13983
cash at bank and in hand 19637 19637 18026 18026
other investments 29 29 9 9
longterm debtors 1001 923 992 967
forward contracts –56 ––
for the purpose of the above table the fair value of shortterm deposits loans and overdrafts approximates to the carrying value
because of the shortterm 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 nonequity 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 photome 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 – 2649 9561 40 36 216 11998
euros 807 – 788 15137 250 – 14906
swiss francs 2052 5902 – 785 – – 8739
us dollars – 58 – – – – 58
yen 147 1386 572 52 – – 719
other currencies 297 683 – 52 2 – 1034
at 30 april 2005 2415 3898 10921 15882 216 216 11274
functional currency of group operation
sterling –479010261382119510615970
euros 127 – 163 6939 694 2 6533 
swiss francs 2026 2117 – 155 – – 4298
us dollars 1125 393 – – – – 732
yen 1391430–42––1333
other currencies 284 361 – – – – 645 
at 30 april 2004 605 1211 10098 7518 1889 108 5183
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 photome 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 3985 1911 146 6323
exchange adjustment – 72 2 – 70
utilised 5813071599152979
profit and loss charge 82 296 1017 91 1486
at 30 april 2005 305 2902 1331 222 4760
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 photome australia pty ltd was formed during the year
55 photome 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 3623 2021 – –
other differences in recognising revenue and expense items in other periods 
for taxation purposes 
– research and development 4988 4301 – –
– movement on provisions 2051 2132 – –
– other shortterm timing differences 2012 264 396 323
8120 7628 955 885
the closing balance comprises
deferred tax debtor 955 1119 955 885
deferred tax creditors 9075 8747 – –
the movements on deferred taxation during the year were
group company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
opening balance 7628 6009 885 270 
exchange adjustment 16 318 – –
transferred from subsidiary undertaking – – – 616
chargecredit for the year 476 1937 70 539
closing balance 8120 7628 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 nondiscounted 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 £4985000 2004 £4912000 in respect of unrelieved tax losses have not been recognised as
their future economic benefit is uncertain
56 photome international plc 
annual report 2005
notes on the accounts 20 share capital
2005 2004 2005 2004
number number £’000 £’000
authorised
ordinary shares of 05p each 439800000 439800000 2199 2199 
deferred shares of 25p each 8040000 8040000 201 201 
447840000 447840000 2400 2400 
allotted issued and fully paid
ordinary shares of 05p each 364289120 364252370 1821 1821 
deferred shares of 25p each 8040000 8040000 201 201 
372329120 372292370 2022 2022 
the nominal value of the 36750 ordinary shares issued during the year was £184 2004 £6053 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’ 8040000 deferred shares have been classified as
nonequity interests
share options which have been granted to senior staff including directors to purchase ordinary shares of 05p 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 50000 3820p 10 feb 2003
8 sep 1998 300000 7420p 8 sep 2003
22 aug 2000 308500 8700p 22 aug 2005
10 jan 2002 1035000 3533p 10 jan 2007
13 dec 2002 3135000 1833p 13 dec 2007
3 july 2003 325000 6317p 3 july 2008
13 feb 2004 415000 13850p 13 feb 2009
total 5568500
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 photome 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 3487 2765 60860 67112
transfers between reserves – 42 42 –
profit for the year – – 21720 21720
dividend – – 7285 7285
exchange and other adjustments – 1 92 93
at 30 april 2005 3487 2806 75161 81454
goodwill charged to reserves is £13063000 2004 £13063000
company
share premium profit and
account loss account total
£’000 £’000 £’000
at 1 may 2004 3487 3888 7375
profit for the year – 4170 4170
dividend – 7285 7285
at 30 april 2005 3487 773 4260
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 3721 1961 157 271
in addition the groups vending companies have contracted with a group manufacturing company for the supply of machines
totalling £9562000 2004 £3470000 of which the company’s commitments total £1273000 2004 £1467000
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 1568 
– contingent liabilities – overseas taxation 1583 1566 1583 1566
– others 124 124 – –
in respect of third parties 35 – 35 –
1742 1690 2678 3232
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
£1550000 the company which is based in the uk is a manufacturer of quality children’s rides 
58 photome 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 longserving employees this pension scheme the photome
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 75 per annum investment returns on giltsbonds of 5 per annum salary
increases of 35 per annum and price inflation of 25 per annum the market value of the scheme’s assets at the valuation date
was £4055000 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 131 of pensionable salaries for the year
ending 30 april 2006 plus an additional payment of £56000 2004 £51000 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 £111000 2004 £100000 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 autophoto kk 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 £296000 2004 £727000
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
photome 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 £6000 of contributions were outstanding at 
30 april 2005 2004 £5000
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 surplusdeficit will be split between operating charges financing items and in the statement of
total recognised gains and losses actuarial gains and losses
59 photome 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 38 40 45
rate of increase to pensions in payment for pensions accrued before 6 april 1997 30 30 30
rate of increase to pensions in payment for pensions accrued after 5 april 1997 28 30 25 
rate of increase of deferred pensions 28 30 25
discount rate 53 57 55 
inflation assumption 28 30 25 
the company contributions during the accounting period amounted to £85000 2004 £49000 and the agreed company
contribution rate for the coming year is 131 of pensionable pay plus an additional amount of £56000 2004 £51000 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 
longterm longterm longterm
rate of value rate of value rate of value
return £’000 return £’000 return £’000
equities 80 1852 80 1781 80 1435 
bonds 50 2139 54 2027 50 2538
other 28 376 30 256 25 123
total market value of assets 4367 4064 4096 
present value of scheme liabilities 4808 4491 4716
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 83476 69134
net pension liability under frs17 309 299
shareholders’ funds including net pension liability 83167 68835
profit and loss reserve
profit and loss reserve excluding net pension liability 75161 60860
net pension liability under frs17 309 299
profit and loss reserve including net pension liability 74852 60561
60 photome 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 creditedcharged 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
lossgain arising from changes in assumptions underlying the scheme liabilities 245 145
actuarial lossgain 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 lossgain 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 photome 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 bv which owned 245 of the
preference shares in auto photo systems inc automax holding bv 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 £56000 and interest paid in the year to 30 april 2005 was £nil 2004 £3000
philippe wahl declared an interest of 303 in fotofixschnellphotoautomaten gmbh until his disposal of the interest on 
18 september 2003
dan david and philippe wahl have declared an interest in oserdam corporation bv ‘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 £7659000 2004 £5385000 purchases £3799000 2004 £910000 debtors at 
30 april 2005 £3339000 2004 £2364000 and creditors at 30 april 2005 £147000 2004 £112000
sir patrick mcnairwilson 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 £75000 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 £35000 2004 £46000 and
debtors at 30 april 2005 £1000 2004 £1000
transactions by the group with photomaton maroc sarl during the year to 30 april 2005 were sales £3000 2004 £nil and
debtors at 30 april 2005 £101000 2004 £nil
joint venture
the joint venture photome 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 £642000 and debtors at 30 april 2005 £548000 which included shareholder’s loans of
£168000 of which £5000 was received as interest
62 photome 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 755 of the preference shares issued by auto photo systems inc
the principal activities of the group undertakings are the manufacture sale and operation of coinoperated automatic photobooths
copiers and express print services together with the manufacture and sale of photoprocessing 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
fotofixschnellphotoautomaten gmbh vending 100 germany
fototronic ausweissysteme gmbh sales 100 germany
imaging solutions ag manufacturing 86 switzerland
imagus sa research 100 france
kis sas manufacturing 100 france
morenar sa investment 100 switzerland
nippon autophoto kabushiki kaisha vending 100 japan
kk photec sales 100 japan
photomatico singapore pte limited vending 100 singapore
photomaton sa vending 100 france
photome cr spol sro vending 80 czech republic
photome france sas investment 100 france
photome hungary kft vending 51 hungary
photome ireland limited vending 100 ireland
photome northern ireland limited vending 100 northern ireland
photome usa llc vending 94 usa
prontophot austria gmbh vending 100 austria
prontophot belgium nv vending 100 belgium
prontophot holding sa investment 100 switzerland
prontophot holland bv vending 100 holland
prontophot schweiz ag 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
photome australia pty ltd vending 50 australia
63 photome 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 98014 78559 37598 39770 45431
vending 137958 141390 149790 147121 163385 
total turnover 235972 219949 187388 186891 208816 
profitloss on ordinary activities before interest 34311 22649 1077 6985 2714
net interest 1274 1519 2331 3047 3110 
profitloss before taxation 33037 21130 3408 10032 396
taxation 10910 6018 852 574 1109 
profitloss after taxation 22127 15112 4260 9458 1505 
minority interests 407 554 79 154 217 
profitloss attributable to shareholders 21720 14558 4339 9612 1288 
dividends 7285 3643 – 1089 6875
retained profitloss for year 14435 10915 4339 10701 8163 
balance sheet
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
intangible assets 24231 21395 18273 15595 15156
tangible assets 71856 63971 78669 90152 104741
other fixed assets 260 282 307 1393 720 
net current assetsliabilities 21477 18723 1653 4584 3254 
creditors amounts falling due after one year 18477 17651 24959 29456 38647
provisions for liabilities and charges 13920 15070 12036 11762 13100
minority interests 1951 2516 1976 1999 2010
net assets 83476 69134 59931 59339 70114 
share capital 2022 2022 2016 2016 2010 
reserves 81454 67112 57915 57323 68104 
shareholders’ funds 83476 69134 59931 59339 70114
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
net cashdebt 4063 2925 33401 51404 56185
key statistics
2005 2004 2002 2001 2000
basic earningsloss per share 596p 401p 120p 265p 036p
dividends per share 200p 100p – 030p 190p
dividend cover 298 398 – 882 019
share price – highest 12275p 14400p 3900p 12400p 20900p
share price – lowest 8350p 3850p 1450p 1525p 7500p
share price – year end 9475p 11900p 3900p 2075p 12850p
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 photome 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 01372 453399
fax 44 01372 459064
web wwwphotomecouk
email irphotomecouk
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
kingstonuponthames
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 photome 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
mp 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
fcoutazreplan 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 wirtzodenthal 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 photome 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 35621251187234
nominees 723263986204725
other corporate bodies 78 87791044 241
4363 364289120 1000
size of holding
1 – 1000 2102 1146969 03
1001 – 10000 1770 5464122 15
10001 – 100000 320 10906923 30
100001 – 500000 91 22509467 62
500001 – 1000000 23 16454689 45
1000001 and above 57 307806950 845
4363 364289120 1000
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
31031982 100 ordinary shares of 50p each at market value of 445p per 50p share
09121983 1 for 5 cap 20 ordinary shares of 50p each
120
12121985 1 for 6 cap 20 ordinary shares of 50p each
140
12121985 subdivision 140 50p to 25p
280 ordinary shares of 25p each
18121987 subdivision 1120 25p to 5p
1400 ordinary shares of 5p each
13121989 subdivision 1400 5p to 25p
2800 ordinary shares of 25p each
08111999 subdivision 11200 25p to 05p
14000 ordinary shares of 05p each
ftse actuaries industry classification
the photome 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 wwwphotomecouk
67 photome 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
finalyearto30april2005 –exdividenddate 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 online at wwwshareviewcouk
the register of directors’ interests is maintained at the registered office at bookham
copies of the report and accounts should be requested from
photome international plc
church road
bookham
surrey kt23 3eu
tel 01372 453399
fax 01372 459064
email irphotomecouk
68 photome international plc 
annual report 2005
shareholder information manufacturing
pmi’s manufacturing business primarily comprises photoprocessing equipment 
the grenoble france activity of kis includes the rd 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 onsite photoprocessing services 
volume production of such equipment has recently been subcontracted to 
specialist manufacturers in lowcost territories currently poland and china 
the zurichbased subsidiary imaging solutions designs and builds high output
wholesale photoprocessing machines
h imaging solutions fastscan 20
at over 22000 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 20000 prints per hour handling 
a range of inputs from scanned negatives digital
cameras or other digital sources the printer uses more
than 22 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 redeye 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 1100 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 1500 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 
2501000 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 estation
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 standalone 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 28000 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 photome’s usual viewbefore
youprint 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 09 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 infrared 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
photome international plc annual report 2005
photome international plc
church road
bookham
surrey kt23 3eu
t el     44 01372 453399
fax  44 01372 459064
web wwwphotomecouk
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 endconsumer
vending solutions
pmi has 28000 vending locations
worldwide and is the world’s leading
operator of photobooths with 
20000 sited pmi has started to 
rollout digital media kiosks which
enable digital camera users to fulfil
their instant imaging needs
pmi manufactures a unique and
complete range of photoprocessing
equipment covering all market
segments from wholesale via
specialist and general retail to 
endconsumer kiosks
open here to view our
equipment range
p
photome international plc annual report 2005
 


Summary:
 02 photome 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 pretax
profit and earnings per share”  03 photome 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 pretax profit and
earnings per share 
the adjusted pretax profit which totals £345m 
has again exceeded market expectations 
prospects for further progress remain good
financial overview
on turnover up 73 at £2360m adjusted pretax profit
increased by 620 to £345m – a record by a wide
margin adjusted basic earnings per share were 547
higher at 628p reflecting an increased effective tax rate
“ adjusted” excludes an exceptional charge in connection
with restructuring in japan of £08m 2004 exceptional
credit of £04m and a goodwill amortisation charge of
£07m 2004 £05m the reported figures are a pretax
profit of £330m 2004 £211m up 564 and eps of
596p 2004 401p up 486
after £345m of capital expenditure and financial
investment net cash balances increased to £41m 
from £29m
dividends
a final dividend per share of 12p 2004 10p 
is proposed t ogether with the interim dividend of 
08p 2004 nil dividends per share are doubled at
20p 2004 10p 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 exdividend date is 5 october 2005 
business overview
in the vending division which has an unrivalled network
of 28000 sites worldwide operating profit improved
although turnover decreased by 24
manufacturing turnover increased by 248 to 
£980m representing 42 2004 36 of total 
turnover manufacturing contributed the bulk of the 
pretax profit and its increase benefiting from increased
volumes and higher margins following the transfer of
minilab manufacture to a subcontractor 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 nonexecutive director and has been
appointed life president 
subsequent to the year end on 1 june 2005 david
scotland resigned as a nonexecutive director having
made a valuable contribution during his four years in that
role he is succeeded by hugo swire who brings to the
board wideranging experience in business development
in international markets 
employees
on behalf of my fellow directors i would like to thank
pmis employees who number more than 1600
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 rollout 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