Photo-me Share Discussion Threads

[azaman] 28/10/2019 09:05

Overall revenue is still growing and so, it matters not, where it comes form

[ch1ck] 28/10/2019 09:04

It looks to me like the board is ahead of the game and foresaw the intro of smart phone pictures being accepted and switched to vending. A smart move but it has not ditched this entirely. I. Can see an export of machines from the UK to other countries and then a reduction of this business to key sites.The details will be in the figures

[astralvision] 28/10/2019 08:50

They don't give how much the UK identification market declined by, although One can make a stab at it as they give the overall id decline and the slight growth excluding UK id.Think it would have been more transparent to say UK id declined by 10% or whatever the figure is.Perhaps a reason for the share price fall.

[prokartace] 28/10/2019 08:44

We can read the news you dont need to republish it here! Sound update.Cannot imagine where the share price would have gone with a poor update!!!

[john09] 28/10/2019 07:35

“and the UK Government's decision to allow for photos taken on a smart device or camera at home to be used for passport photo identification.̶1;

Do not ignore this

[shanklin] 28/10/2019 07:32

Curious to see UK not would appear now to be new best practice on photo ids

[masurenguy] 28/10/2019 07:10

Solid update !

Trading Update

Photo-Me (PHTM.L), the instant-service equipment group, announces the following trading update covering the period from 1 May 2019 to 30 September 2019.

The Group has continued to make strategic and operational progress in line with its strategy to diversify its range of products and services, driven by the expansion of its laundry business and the acquisition of SEMPA Sarl ("Sempa"), as announced in April 2019. In the period to 30 September 2019, overall Group trading has been in line with expectations, underpinned by continued growth in Continental Europe and Asia, led by the Laundry business, despite trading in the Identification division in the UK remaining challenging. This has been due to continued uncertainty around the UK's European Union exit negotiations, leading to lower consumer activity, and the UK Government's decision to allow for photos taken on a smart device or camera at home to be used for passport photo identification.

Identification

Excluding the UK, the Group's Identification revenue was stable (+0.2%) year-on-year, driven by continued solid performance in France and Japan. Total reported Identification revenue in the period to 30 September declined by 3.8%, reflecting the decrease in activity in the UK photobooth market. In total, the Group now has more than 12,000 photobooths connected to government organisations for the secure upload of photo ID in the UK and Continental Europe, and it is anticipated that this number will continue to grow as discussions with governments to deploy this technology progress.

Laundry

The expansion of Laundry operations remains a key driver of growth for the Group and further good progress has been made during the period, with revenue growth of 23% in the period to 30 September. The rollout of Revolution machines in key geographies (UK, Ireland, Portugal and Spain), has continued at an average rate of 50 machines per month. The Group has also continued to build its laundry presence in newer markets such as Germany, Austria and Switzerland. In the UK, there has been an improving trend in B2B activity, albeit this is at an early stage of recovery and is expected to report growth for the full year. As anticipated, year-on-year, the Laundry business has continued to contribute an increasing proportion of the Group's revenue and profits.

Kiosks

The Kiosk business has continued to perform as expected, with the majority of operations in France. Capex on the Kiosk business has been restricted to premium sites as we focus on delivering growth in the Laundry business.

Food

Following the acquisition of Sempa, which marked the Group's entry to the fresh fruit and vegetable juice market, the Group has formed a new segment, called "Food". Going forward, this segment will be a significant part of the Group's future growth strategy, alongside Identification and Laundry. In the financial year to date, this business has performed in line with expectations.

Photo-Me's intention is to become the global leader in the distribution of self-service fresh fruit juice machines, and its strategy to achieve this is two-fold, aimed at the B2B and B2C markets. In the B2B market, the Group sells self-service juice machines to organisations such as restaurant, hotels, supermarkets, offices and small businesses. The majority of machines are sold under lease finance contracts, with approximately 70% of these lease agreements renewing every 12-months on average.

For the B2C market, the Group sells fruit juice drinks direct to consumers via self-service juice vending machines, in locations such as railway stations. In September, Photo-Me acquired 150 juice vending machines from L'Orangerie de Paris, enabling the Group to run a larger scale trial to test the market prior to deploying vending machines across other geographies. These machines will be refilled and maintained by Photo-Me's existing network of field engineers. In the B2C market, the Group is initially offering fresh orange juice, though the intention is to extend the product range over time. The development of machines for apple juice and pineapple juice is underway and these are expected to be rolled out in FY2021.

Competition within the self-service juice market is relatively limited and, by leveraging the Group's existing network of field engineers, the Board believes this market presents a significant growth opportunity for the Group in the medium to long term.

Looking forward

While consumer uncertainty continues to weigh on our business in the UK, we remain confident that overall the Group will continue to perform well, and in line with market expectations in the current financial year. The Group expects to announce its Interim Results for the six months ended 31 October 2019 on Tuesday 10 December 2019.

[john09] 25/10/2019 17:56

Great yield I’ll give you that

[stun12] 25/10/2019 17:53

The inline earnings PR was only a few weeks ago. Maybe just divi catchers getting out of the way. I don't have too many of these (8k or so) so am happy either way - I like the way the mgmt is flexible with the business model.

[azaman] 25/10/2019 17:45

I don't think there will be any surprises; it's the Brexit uncertainty that causing the dips.

[john09] 25/10/2019 17:28

Interesting dip ahead of Monday

[azaman] 17/10/2019 16:26

I wonder what the price will be tomorrow.

[yf23_1] 17/10/2019 16:06

ex-div today 4+p

[stun12] 17/10/2019 11:58

Eh? A weaker pound would increase the value of foreign earnings in Sterling terms. The pound has traded higher over the last few sessions (lowering the value of foreign earnings) so that could be it. I suspect that we haven't heard the last of Brexit by quite some way so took the opportunity to lighten up (not PHTM) this morning.

[azaman] 17/10/2019 10:09

The price drop must be related to Brexit uncertainty which is leading to weaker pound
which will be affect the earnings .

[ch1ck] 17/10/2019 09:25

It as in the weekend financial pages

[revoman] 17/10/2019 08:56

Tipped in the FT? When exactly was that?

[ch1ck] 17/10/2019 08:47

No I don't think so it will rebound it was tipped last eek in the FT

[killman2] 17/10/2019 08:33

bad boy stock methinks...financial statements getting worse IMHO...

[prokartace] 17/10/2019 08:24

Ex dividend but drop bigger than dividend!

[azaman] 15/10/2019 10:36

Ex-dividend date is fast approaching but the shares are still asleep.

[ch1ck] 07/10/2019 08:10

Nice mention in the FT at the weekend on the investor portfolio advice page

[yf23_1] 04/10/2019 08:19

Surprise, surprise, now the chart says 97p at the open, as yet no trades.