The FSA has fined Photo-Me International plc ("PMI") £500,000 for failing to disclose inside information and failing to communicate information in order to avoid a false market.
The FSA has imposed the penalty as a result of PMI's delay of 44 days, between 17 January 2007 and 2 March 2007, in disclosing to the market inside information relating to its minilab sales and the resultant impact on its financial performance.
PMI eventually announced to the market, in a profit warning issued on 2 March 2007, that it believed its pre-tax profit would be very substantially below previous expectations. Following this announcement, analyst expectations of profits for PMI's year to 30 April 2007 fell by around 46% (from £23.7 million to £12.9 million) and PMI's share price fell 24% on the day.
For further information see: www.fsa.gov.uk/pubs/final/photo_me.pdf