P&MM Plc - Well Ahead of broke forecasts

I bought into these today after they posted an upbeat trading statement.

The statement says they will be materially agead of broker forecasts with operating profit in the region of £1.65m for the year.

They did just £412K operating profit in H1 which means H2 has seen operating profit of around £1.2m

Numis were expecting 1.4m operating profit so it looks like PMM are 20% ahead of forecasts.


On this basis I think we can expect next year's eps forecast to be upped to at least 6.1p, a 20% upgrade, perhaps a bit more.

Looks like the forward PE is something like 12, growth forecast of around 40% and a business sector that is likely to benefit from un upswing in the economy as other businesses re-invest to promote themselves.

Based in Milton Keynes, you can see a bit more about the company here:

http://www.fotorama.co.uk/index.php?f=y

Where they trade under the name of Fotorama.

I'd have thought a PE a lot higher than 12 was likely here. Having done £1.2m operating profit in H2 then £2.4m looks well achievable mext year on an annualised basis. deduct £100K interest that Numis is deducting for this year and £2.3m pre-tax looks very possible next year if not more, around 30% more than currently forecast with no growth over H2. Wouldn't surprise me if 7p eps next year is achievable or more. That would be a forward PE around 10.5 or so.

Looks good value to me - results are due in March.

CR