Photo-me Share Discussion Threads

[stun12] 13/12/2019 11:12

Doubled up here. No idea what will happen next, but they do seem to know what they're doing, and are putting their own money in at these levels.

[knowing] 13/12/2019 09:49

Lintons couldn't agree more. Stonking divi as well.

[linton5] 13/12/2019 08:08

Great buy I’d say now all other British stocks cruising this is stuck in reverse

[thorpematt] 13/12/2019 01:10

There is only one thing wrong with PHTM and that is its name.

This company is no longer all about the booths. It's name therefore is somewhat misleading and in part at least it is responsible for some investors missing the point.

[stun12] 12/12/2019 21:10

He wouldn't have been allowed to buy before the update. That is a cool £1mm to decide to put in. Not options either, which are so easy. A vote of confidence I hope.

[azaman] 12/12/2019 20:30

something is at play here.

[2bluelynn] 12/12/2019 19:22

I wonder why the shares price went down Today sergi bought all shares Is that not good news

[knowing] 12/12/2019 13:29

Photo-Me, the instant-service equipment group, was notified on 11 December 2019 that Tibergest PTE LTD, an entity closely associated with Mr Serge Crasnianski, Chief Executive Officer and Deputy Chairman of Photo-Me, bought 1,160,000 ordinary shares of 0.5p each ("Ordinary Shares") at a price of 89.98 pence per Ordinary Share on 10 December 2019.

[qvg] 11/12/2019 08:08

Masurenguy, I agree with your view

[masurenguy] 11/12/2019 07:43

"there could be upside if Govts require psychometric details, which could possibly be designed into PHTM's booths in future?"

That is almost a racing certainty for a whole variety of reasons and this should sustain the photo-booth market for years to come until, or unless, alternative options emerge !

[rcturner2] 11/12/2019 07:31

Paul Scott's view on Stockopedia:

Photo-Me International (LON:PHTM)
Share price: 90p (up 4% today, at 16:19)
No. shares: 378.0m
Market cap: £340.2m

Interim results

Photo-Me International plc (PHTM.L), the instant-service equipment group, announces its results for the six months ended 31 October 2019.
We're presented with a long table of options in terms of profit.

Note how IFRS 16 has complicated matters, by distorting EBITDA. So both measures are given, before and after its impact. Although IFRS 16 has had little impact on profit. I'm happy to focus on the adjusted EPS of 6.0p, up a useful 9.1% on H1 LY. Adjustments are so minor, they're not worth detailing here.

H1 is the seasonally stronger half, so we cannot just double that to arrive at a full year figure, because that would be overly optimistic.

Dividends are what this stock is all about. The 3.7p interim payout is held. The full year yield is 9.8% - remarkable!

Outlook - note the focus on its launderette machines, which seems to be growing well;

The Group remains focused on its strategy to further diversify its product offering both organically through innovation, and through smaller bolt-on acquisitions.
Expansion of Laundry, particularly in new markets such as Germany, Austria and Switzerland, remains a key priority, including increasing the Group's presence in the B2B and the laundrette markets, which continue to represent a material opportunity for the Group. Looking ahead, this business area will continue to account for an increasing proportion of the Group's total revenue in the medium term.
KIS Food is an important component of the Group's future growth strategy and we will continue to progress with the development and rollout of the offer in this business area. Our initial focus will remain within French supermarkets, whilst the Group looks to expand into other Pan-European geographies in the future.
Whilst consumer uncertainty continues to weigh on our business in the UK, we remain confident that the Group will continue to perform well during the coming period, and in line with market expectations, in the current financial year.


Valuation - the forecast for this year FY 04/2020 is 9.77p adj EPS - for a PER of 9.2 - great value for such a cash generative business.

Balance sheet - looks fine to me. As noted last year at this time, it perplexes me as to why PHTM has a large cash balance of £84.8m, and bank debt of £60.2m. This seems inefficient, in terms of interest cost.

Maybe there are seasonal peaks & troughs which see the cash figure drop a lot lower than on the balance sheet dates?



5defcc58c177dPHTM_net_cash.PNG





My opinion - these are good figures, and full year performance is confirmed to be in line.

Why is this share so cheap? In a low interest rate environment, a PER of below 10 seems a bargain. The problem, I imagine, is that the market sees risk that the traditional photo-booths might become obsolete. E.g. in the UK, the public can now take their own smartphone photos for passports, instead of using a photo-booth.

Or, there could be upside if Govts require psychometric details, which could possibly be designed into PHTM's booths in future? Who knows. If you get the correct answer to this quandary, then you would be likely to either do well on this share, or avoid a dud. I don't know which it will be unfortunately, as predicting the future is difficult to do.

I'm leaning towards seeing this share as a bargain, as it has various strings to its bow, not just passport photos.

Stockopedia agrees, with "Super Stock" classification, and a lovely StockRank;

[joe moat] 10/12/2019 18:20

the revenue's growth rate per (revolution )unit is 6%. not bad

[knowing] 10/12/2019 17:31

Becoming a bit of a cash cow.

[yf23_1] 10/12/2019 17:24

Wow, £1.8m profit on £3.5m revenue for Sempa. That sounds good.

[justiceforthemany] 10/12/2019 16:54

Schroders adding; holding 13% now.

[cheshire man] 10/12/2019 13:09

Income stock for me so happy to hold on this morning results :-)

[ny boy] 10/12/2019 12:20

I have been holding for years, good cash generator, progress with the laundry expansion etc. Decent divi payments wake me up a couple of times a year.

May get a bounce if Boris gets his expected, comfortable majority, we will see Friday am, most people sitting on the fence until the GE result is known. GLA long term holders

[azaman] 10/12/2019 11:59

The institutional buyer has woken up.

[justiceforthemany] 10/12/2019 10:41

If EPS of 6p can be repeated in H2 at 6p we are looking at a P/E of just 7.5 here currently and a yield approx 10%. They would be better off selling the UK photo booth business.

[azaman] 10/12/2019 10:26

Just to complete the above story : bought at 90p

[justiceforthemany] 10/12/2019 10:09

2x £1M+ buys.

[masurenguy] 10/12/2019 09:07

FinnCap reiterates a target shareprice of 150p with two other analysts currently indicating targets of 150p and 110p respectively.

[masurenguy] 10/12/2019 08:00

Interims indicate that they are holding steady and the cash position remains strong. The key here will be the growth that can be achieved through both the laundry and fruit diversifications. At the current shareprice the yield remains above 9%

Financial summary

-- Revenue was up 3.3% to GBP123.9 million (up 1.8% at constant currency).

-- Underlying revenue (excluding Sempa) up 0.4% to GBP120.3 million (down 1.4% at constant currency).

-- EBITDA improved by 17.4% to GBP45.9 million. Excluding IFRS16 impact, EBITDA improved by 10.7% to GBP43.3 million. This reflects profit growth through laundry expansion, the acquisition of Sempa and a higher depreciation than in the prior year period. At constant currency, EBITDA was up 8.8%.

-- Profit before tax increased by 8.8% to GBP28.3 million and adjusted profit before tax improved 6.7% to GBP28.5 million (up 5.2% at constant currency). Excluding IFRS16 impact, profit before tax increased by 9.2% to GBP28.4 million.

-- Net cash position of GBP25.2 million (H1 2019: GBP32.4 million), following the distribution of GBP31.9 million to shareholders in dividend payments, GBP29.3 million in investments and the GBP10.2 million net cash consideration relating to the acquisition of Sempa.

-- Interim dividend maintained at 3.71 pence per Ordinary share, in line with the stated dividend policy (H1 2019: 3.71 pence per Ordinary share).

Operational summary

-- Continued focus on Laundry expansion, with total laundry units deployed (owned, sold and as a result of acquisitions) up 9.1% and total revenue from laundry operation was up 6.9%.

-- Revenue from Revolution laundry operations increased by 25.2% and number of Revolution units in operation increased by 13.8%. Revolution now accounts for 6.3% of the total Group vending estate (H1 2019: 5.0%).

-- Excluding the UK, Identification revenue increased 0.8%. Including the UK, Identification revenue declined by 3.3% reflecting the challenging market conditions in UK.

-- Entry into the fresh fruit and vegetable juice market through the acquisition of Sempa Sarl ("Sempa") which completed in April 2019. In H1 2020, Sempa contributed GBP3.5 million of revenue and GBP1.8 million of profit before tax to the Group. This new business area called 'KIS Food' is expected to contribute GBP3.2 million profit before tax in FY 2020.

Serge Crasnianski, CEO, said: "The first half of the year saw robust performance despite a number of challenging headwinds. the Group remains focused on further expanding our Laundry market presence across a number of the core geographies in which we operate and across our product offering, from 24/7 self-service machines and laundrettes to B2B laundry services. Our Identification business remains resilient and looking ahead, we expect to benefit from the introduction of mandatory renewal for ID cards in France from 2021 onwards. Our entry into the food market earlier in the year also provides the Group with a new additional platform for growth and will become an important component of our future growth strategy. The Group remains highly cash generative with GBP41.1 million of cash generated during the period, reflecting EBITDA margin improvement. The Board remains confident that the Group will continue to perform in line with market expectations for the current financial year."

[2bluelynn] 08/12/2019 17:57

Thankyou Thorpmat ,will top up one thinks