Good afternoon,
Myself and Paul got our wires crossed today. So that makes for an extra-late report. Apologies!
There were plenty of requests at the bottom of yesterday's article. I'll try to cover a few of them today as well.
Cheers,
Graham
Photo-Me International (LON:PHTM)
- Share price: 169.75p (+2%)
- No. of shares: 376.5 million
- Market cap: 639 million
A thread has already been created covering today's update at this link.
This photo-booth/laundry business confirms that the year ended in April was an excellent one for the group.
This follows on from very strong interim results which I covered in the SCVR of December 9th. (It's true that this isn't really a small-cap, but it's a high-quality and widely-followed mid-cap, so I'm happy too make an exception).
Performance is in line with expectations:
The Board expects the financial year ended 30 April 2017 will be in line with market expectations, with significant revenue growth and record progress in profit before tax (+c.20% compared with 2016), supporting the Group's stated commitment to increase the total ordinary dividend by 20% year on year.
So PBT should be in the region of £48.1 million.
There is also good news in the photo-booth business.
Back in January, there were concerns that more relaxed rules from the Home Office meant that demand for photo-booth passport photos would be seriously undermined.
Checking the currently official rules for passport photos, it looks to me as if most people would continue to use a photo-booth in the UK, for convenience, rather than try to print a professional photo themselves.
Outside the UK, government relationships appear to be improving as Photo-Me has partnered with the Agence Nationale des Titres Sécurisés (ANTS) in France, so that photos and data can be uploaded directly to the driving license government database. A similar move is underway in Ireland. And the roll-out of the laundry business is going well too.
All in all, a great little update which confirms that Photo-Me is doing fine.
I wouldn't expect fast returns here since the valuation is already full enough (17x PE) but for a long-term buy-and-hold with a quality outfit, I'd say you could do worse.
Revolution Bars…
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