Photo booth firm Photo-Me International yesterday posted a loss of more than £17.7m and warned of a potential sales hit from the launch of biometric passports in some countries.

Photo booth firm Photo-Me International yesterday posted a loss of more than £17.7m and warned of a potential sales hit from the launch of biometric passports in some countries.

Photo-Me said its key French business might see passport-related business fall "by an appreciable amount" following the June 29 introduction of biometric requirements, with official on-site kiosks.

The firm said while its UK and Japan markets are not currently at risk, changes to official passport requirement could have a big impact on its business.

Its warning came as the group reported more hefty annual losses, although total losses were slightly better than the previous year's £19.8m and the firm said it had made "considerable achievements" by almost halving net debt to £23.5m.

Photo-Me added that on an underlying basis - stripping out restructuring costs, impairment charges and its discontinued businesses -it made pre-tax profits of £1.6m in the year to April 2009.

The group's troubled Swiss-based wholesale lab manufacturer Imaging Solutions was treated as discontinued for the purpose of the results after Photo-Me agreed a conditional sale of the division yesterday.

Imaging Solutions has struggled against plunging demand in the credit crisis and Photo-Me, based in Bookham, Surrey said the firm was also keen to avoid exposure to "further substantial losses" and a requirement to invest in updated developing technology. The division reported a £6.9m trading loss as well as an £8.1m non-cash write down of assets.

The group said revenues on its continuing operations were up 9% in the year.