Photo-me Share Discussion Threads

[superadams] 14/7/2017 11:48

xxx Try Paysafe ( Pays )and XL Media ( XLM ).As always DYOR.

[keyno] 14/7/2017 11:21

Back down to Serge's buy price.

[valustar1] 14/7/2017 11:16

take a look at BVXP

[xxx] 14/7/2017 11:15

I am looking for similarly cash generative companies, with decent prospects, but am struggling to find candidates. Does anyone have any suggestions ? TIA.

[swiftascent] 11/7/2017 09:18

Beginning to look good value on Jim Slater's PEG ratio. Two concerns as investor:1) Serge is by no means a young man. Who is the successor? 2) Think the share price is not fizzing because the book value per share is not really increasing much. The question is why not?

[dvb99] 10/7/2017 09:17

Definitely need patience on this this one, but collect the divi's in the meantime, as PHTM is a great cash generator.

[b1ggles] 10/7/2017 08:29

Looking at its history, gleach, it seems more like "It tends to sit in the same area for a while - but then when you least expect it - nothing happens!".

A satisfied holder, nevertheless.

[gleach23] 06/7/2017 23:54

Noticed there wasn't much stock around late on today (I checked after the 5k purchase @ 167.75 which looked a bit odd). Just realised Naked Trader is back in again which probably explains it -

"You need a lot of patience if you buy shares in Photo Me! (PHTM). It tends to sit in the same area for a while - but then when you least expect it - it suddenly rerates!

The market marked the shares down after latest results, possibly as there wasn't a special dividend. Still, profits were up 20% as was the dividend. I always like the fact it continues to evolve into new businesses and ideas - and its new laundry business could clean up. All in all I intend to tuckaway the shares and leave them for a couple of years barring of course any question marks appearing or a general market melt."

FWIW I concur with his comments.

[graememu] 04/7/2017 01:55

Featured as share tip of the week in The Share Centre UK

[teddy boy1] 02/7/2017 13:09

This share lacks excitement. Too much of a "slow burner" for me ,but nevertheless GOOD LUCK to all who hold it !

[pnetol] 30/6/2017 16:42

There is no dividend cut, up 20% this year and they have already said the intention is up 20% again next year. Scaremongering IMHO. I think once investors properly analyse the results and prospects then we will hit a new 12 month high

[snadgey] 30/6/2017 15:47

What dividend cut wb82?

[xxx] 30/6/2017 13:32

@Walbrock82,
this is my last comment as I say, I am a poor typist. But have you confused the figures?

'Revenues in Asia and the Rest of the World increased by 11%, benefiting from positive currency variances. At constant currency, revenues from the Asia & Rest of the World division decreased by 11.7%'
+
op pft 2017
actual....... cc.......... 2016
8.4......... 6.9 .......... 10.7

[walbrock82] 30/6/2017 10:43

Okay, in the case of dividends. Yes, management is increasing their dividend for next year. My concern is it is unsustainable because of the ramp-up in business operations, especially their Laundry division.
After 2018, will it be advisable to keep on increasing the dividends when internal cash generation is barely covering capital expenses?

You guys are right about the dividend cut is having a big impact on the share price. Maybe some investors realise the dividends paid out are unsustainable and are anticipating a cut?


For imranawan, my working capital calculation derives from current assets minus current liabilities, and I was comparing it against their cash cycle days.
Hence, a quicker cash cycle would increase working capital, therefore Photo-Me doesn't need the extra capital (debt) to keep their business operational on a day to day basis.


For xxx,yes their was a computer glitch in Japan, but it hasn't affected their Asian operations as operating profits have increased from £6m to £10m in 2016.

[mfhmfh] 29/6/2017 12:20

tipped as a buy in IC yesterday

[napoleon 14th] 28/6/2017 14:37

All very nice, but share price doing a Theresa May as usual - weak & wobbly.
I'm tempted to switch some of these Flat'ol'me for some 7DIG which, whilst being a higher risk, are in a dominant position in a fast expanding market.

Edit : In fact, I just did!

[teddy boy1] 28/6/2017 11:36

N Y Boy You are barking up the wrong tree! Forget Photo Me ( in the short term, at least) and sink your money into IDP > YOU HEARD IT HERE FIRST!

[ny boy] 28/6/2017 11:21

Eventually the share price will breakout, been close a few times but nothing wrong with those results going forward. Markets created me a buying opp, so I took it.

[imranawan] 27/6/2017 21:35

walbrock82 - how did you calculate the fall in working capital from £53m to £37m. According to the cashflow statement working capital movements in 2017 equated to an outflow of £2.3m compared to an outflow of £5.3m. So to me it looks like this has improved. £PHTM is a cash generative company, so am interested in how you calculated this.

[pnetol] 27/6/2017 18:54

They have committed to increasing the dividend 20% again next year, which would give us a dividend of 8.40p next year, a very handy pay out. What's really positive here is that the profit margin is up 140 basis points, that's the increasing influence of the higher margin laundry business. If you look at the cash flow on each laundry unit you will see that it has increased for each of the last three years. The payback on these are very quick. I think they talked about an average of around 18 months, so the cash flow is going to get even better going forward. Personally I think this year could be one of their best as they will gain the benefit of the 7,800 upgraded photo booths in France. GLA

[valhamos] 27/6/2017 18:03

A dividend cut is unlikely. Having repeated in the report today that "The Board is committed to a progressive dividend strategy" it would cause a serious dent in shareholder confidence in the company were such a policy to be ditched.

From what I can see it is also unnecessary, as the "ongoing investment is self-funded through the stable cash flow from our established photobooths business".

[walbrock82] 27/6/2017 17:31

With the share price, close to record highs (though down quite a bit today), here are my thoughts: -

1. Photo-Me decision to expand was the right one because revenue has gone down for years. Now it has a laundry unit that is growing fast.

2. The decision to increase dividends payout was wrong because Photo-Me is expanding and should be deploying cash towards that objective. That £32m payout was equivalent to 5% market cap. and contributed to a £25m in cash outflow. But, expect that was a one-off event!!

3. The laundry unit is looking to balance their photo booth unit as sales grow by 80% to £21m. They want to operate 6,000 units by 2020. Currently, it has 3,251 units.

4. With higher future capital expense, expect Photo-Me to start borrowing more money or reduce dividends to realise these objectives.

5. Other tell-tale signs of increasing borrowings are the fall in working capital from £53m to £37m, a five-year low.

6. Expect higher depreciation charges in the future, similar to £30m-£35m. It is currently at £22.4m.

For the detailed analysis and charts, click

[ny boy] 27/6/2017 16:41

Decent long term hold to buy on dips, nice divi too. I added @ 162p

[ali47fish] 27/6/2017 13:25

thank you smoky- to be honest i donot personally consider the div as any compensation for the share price remaining stagnant or lurching down on updates- so i need more positives to keep holding-me i'll watch it for another while but if it doesnt behave thats it!