Photo-me Share Discussion Threads

[essentialinvestor] 19/7/2019 11:08

I can see a situation where just 2-3k UK photo booths are in operation.
Now this is a complete guess on my part, but to me may be reasonable -
barring a legislative change.

[nw99] 18/7/2019 21:17

Good day again

[snadgey] 18/7/2019 16:30

The decline in photo booth revenue only seems to be happening in UK.

"Excluding the UK, Identification revenue grew by 0.7% and the number of units in operation increased by 0.9%"

The company has recognised that UK government allowing customers to submit their own photos has impacted on custom. This does not appear to be the case in Europe. If 3D ID becomes established as a requirement then this should put PHTM in a strong position and potentially lead to further growth here.

Despite the hype, the rush to taking our own photos for ID doesn't seems to be happening (yet).

[yf23_1] 18/7/2019 16:15

I think if you take some growth from the laundry side and the declining photo booth business and combne that with possible future growth in the new food/drink machines, the shares should be at least rated on a bond like divi basis at 120p

[snadgey] 18/7/2019 16:02

EI, don't think there has been a drop. Number of Revolutions increased by 18%, yet revenue gone up by 30%. Quite impressive really. In medium-long term this division could bring in some serious revenue, together with high margins (over 50%?).

[essentialinvestor] 18/7/2019 15:47

Snadgey, yes from memory it was around that number.
However in past reports PHTM have highlighted this prominently, just
wondering why not this time, has there perhaps been a small fall in average
revenue per revolution machine?.

[snadgey] 18/7/2019 13:44

EI re: revenue per Revolution. From memory it's about 1500 euros per unit per month on average.
Still happy to hold here. Cash generation is still rising and covers dividend twice. Photo ID overral seems to be holding steady despite the gradual decline in the UK. Margins also fairly steady.
As mentioned, can't understand their entry into B2B laundry sector. Impact of slowdown/delayed orders seems to be having a significant effect.
They may struggle to reach their stated 6000 laundry unit target at current rate of deployment. This seems to have slowed despite their opening up a second line of production. I suspect this was to save on capex last year. Hopefully this year will see them increasing deployment.
All the best.

[knowing] 18/7/2019 13:44

Well someone is interested at this price.

[prokartace] 18/7/2019 13:27

I think exciting future with all the plans in he pipeline. Photo booths will end up as a minority of the business evetnually

[essentialinvestor] 18/7/2019 13:20

Can anyone confirm the average annual revenue generated per revolution laundry machine?. They have flagged this up previously but I can't see it on a quick
read through.

Fwiw would expect a significant further reduction in their UK ID estate,
as mentioned previously mobile photo apps have disrupted this market,
surprised at the very small number of machines removed.

B2B laundry, why on earth they entered this market is beyond me,
did reference that at the time.

Net cash being burnt through. Overall still an interesting
company, the UK may be a multi year headwind with falling demand for ID.
Might be underestimated. B2C Laundry the interesting longer term business.

[ny boy] 18/7/2019 13:17

All good for me, nice yield, a steady plodder, morecabout post brexit before higher moves to 150p.

Will check back in later in Q4

GLA all long term holders.

[knowing] 18/7/2019 11:53

Finncap 150p target

[masurenguy] 18/7/2019 11:25

You're right - bout time I invested in a new calculator ! :o)

[wjccghcc] 18/7/2019 10:31

I think it's 9.4% at 90p. Dividend is 8.44p.

[masurenguy] 18/7/2019 10:14

Yield is 7.6% at the current Offer price.

[ygor705] 18/7/2019 10:00

Although not a great year, operational cash flow remains strong. That said, we are still investing large amounts in updating, developing and diversifying the business. The dividend has been maintained although, as has been mentioned elsewhere, it is no longer covered by earnings. The comments on outlook look neutral to me but maintaining the dividend must say something about outlook. The laundry business is growing but it is perhaps too early to make a judgement on the new acquisition. Not expecting fireworks here but the dividend should provide a prop to the share price unless the outlook deteriorates from here.

[masurenguy] 18/7/2019 07:21

Revenue flat, PBT down 23%, eps down 22% but dividend maintained. Current PER of circa 11 and a net cash position of £16m (down 39%).

Serge Crasnianski, CEO, said: "In 2019, our operations outside of the UK performed well and in line with our expectations. We delivered revenue and profit growth in Continental Europe, and our Japanese business returned to profitability as planned. In the UK, our operations were adversely impacted by macro headwinds and uncertainty. Expansion of our Laundry services business remains a key driver of growth, with total Laundry revenue up 19.0% and revenue from Revolution machines up 30.2% year-on-year. Looking ahead, we will continue to drive profitability through our existing estate and new product innovation. Our entry into the fresh fruit and vegetable equipment market through the acquisition of Sempa provides us with the platform to further diversify our product offer. We remain confident for the future."

Interesting to see how much of this is already baked into the shareprice, which has already declined by circa 20% over the past 12 months.

[capercaillie] 18/7/2019 07:13

Dividend not longer covered. Net cash but down from £26.7m to £16.3m

[nw99] 17/7/2019 07:57

Results 18/7

[techno20] 17/7/2019 07:57

Positive that the delay has been a short one. Suggests no surprises in store.

[jsforum] 17/7/2019 07:50

Just wish they had engaged a better auditor than Grant Thornton

[masurenguy] 15/7/2019 15:08

Quite agree gateway, on both issues.

[gateway] 15/7/2019 14:57

Delayed financial results I think are going to be increasingly more common this year given the Financial Reporting Council 2019 Audit Quality Inspections report out recently...but not worried for PHTM...but the markets do not like uncertainty or delay

[nw99] 15/7/2019 14:32

No impact here thanks for that