Photo-me Share Discussion Threads

[boonkoh] 12/8/2021 22:17

Serge no longer buying shares? He was always active after the last few results and trading announcements.

[investing2retire] 12/8/2021 21:17

my stop hit and out for now.

[cheshire man] 03/8/2021 10:25

Photo-Me International (LON:PHTM) Receives Buy Rating from ...

03/08/2021 · Canaccord Genuity reiterated their buy rating on shares of Photo-Me International (LON:PHTM) in a research note issued to investors on Monday morning, Price Targets.com reports. Canaccord Genuity currently has a GBX 105 ($1.37) price objective on the stock. PHTM stock opened at GBX 77.05 ($1.01) on Monday. The company has a current ratio of 1.54, a quick ratio of 1.33 and a …

[thorpematt] 02/8/2021 09:51

Yeah, I wasn't planning on selling mine for quite some time. I can't imagne I am the only one.

The way I see it is that this is a combination of recovery, transition and roll-out.
All 3 of thse take various times to play out and holding whilst that occurs is the simple strategy to follow.

With respect to earnings, this keeps on getting upgraded. Every time you look a future PE ratios the future "P" goes up. Hence the valuation and therefore target tends to do the same.

IF PHTM gets it right with its strategy for "offering", (and there should be be some trial and error on this IMO), it will deliver very strong margins and cash-flows (and divis) in the not too distant future. That in turn will justify a much higher valuation than the market currently is giving.

Vending (and all the associated business models related to the what PHTM has as its barrier to entry) is far from being a shrinking sector. If we consider the principle of rising labour costs versus increasing sophistication of machine delivery for point of service I think we'll get the gist. PHTM is uniqely position to take advantage in Europe.

I am holding my stock with a vice like grip. A grip only ever relinquished a tad when sliding one finger across to the buy button.

[investing2retire] 02/8/2021 09:33

been tryng to buy this morning but no sellers (at least at the volume i want to buy)

[cheshire man] 02/8/2021 07:45

Reads very well indeed :-)

[gleach23] 02/8/2021 07:20

Agree Masurenguy...impressive update. Not sure what happened to your copy/paste but the update in full -

Trading Update

Photo-Me International plc (PHTM.L), the instant-service equipment group, announces an update on the Group's trading position.

Following a promising recovery in the first half of FY2021, the Group's trading performance in May, June and July (Q3 FY2021) was better than expected, driven by stronger-than-anticipated recovery of photobooth activity, mainly in Continental Europe.

Consequently, the Board has revised its expectations for the financial year ending 31 October 2021 and is pleased to announce that it now expects to report revenue of around GBP210 million (previously around GBP200 million) and profit before tax of between GBP25 million to GBP30 million before exceptional items (previously GBP21 million to GBP24 million before exceptional items).

Nevertheless, economic uncertainty remains across many of the Group's operating markets due to the COVID-19 pandemic. The Board continues to closely monitor activity across all its end markets.

[masurenguy] 02/8/2021 07:14

Very positive trading update !

Trading Update

Following a promising recovery in the first half of FY2021, the Group's trading performance in May, June and July (Q3 FY2021) was better than expected, driven by stronger-than-anticipated recovery of photobooth activity, mainly in Continental Europe. Consequently, the Board has revised its expectations for the financial year ending 31 October 2021 and is pleased to announce that it now expects to report revenue of around £210 million (previously around £200 million) and profit before tax of between £P24 million before exceptional items). Nevertheless, economic uncertainty remains across many of the Group's operating markets due to the COVID-19 pandemic. The Board continues to closely monitor activity across all its end markets.

[knowing] 16/7/2021 11:36

Upgraded

Photo-me International PHTM Canaccord Genuity Buy 74.00p 0.00p 105.00p Upgrade

[essentialinvestor] 13/7/2021 21:24

boon, followed PHTM since 1991 and held a number of times
so understand labour utilisation and the potential for cost efficiencies.
I'm still unconvinced that adding juice/food makes sense, may be wrong on that obvs. Luck with your holding.

[boonkoh] 13/7/2021 14:21

You're missing the investment case here. It's not vending machines. It's the servicing scale they have with their existing 600+ driver network.They are the only company that can manage a network of vending machines cost effectively because the same engineer can service multiple machines at the same time, on the same route. Whereas if each business line was its standalone company, they would be lossmaking because each would need it's own nationwide engineer network.So in that context, bolting on small, different vending businesses make sense. They can drive operating costs out easily.

[essentialinvestor] 13/7/2021 13:51

Does the juice business make any money?, does B2B laundry turn a profit?,

now it's pizza.


They have a great New business in B2C laundry with Revolution which requires
significant Capex during the roll out period, so I do not understand why it's
one more new product offering after another. Unnecessary complication imv.

[boonkoh] 13/7/2021 13:03

Moving in the right direction to diversify away from Identification. But that still is the bulk of revenues and profits. And performance increasing driven by just three geos - UK (struggling), JP (one off my number boost), and FR.Chairman clearly believes in future. I'm more sceptical. Been observing for a while, going to continue to sit on sidelines with the latest results. I think it's fairly priced at the moment.

[thorpematt] 13/7/2021 08:13

"Always read the notes first" - Ben Graham.


-------------
I have been harping on about brand name change for a while now. It's not all about the photos with PHTM.

Interestingly the new brandong focuses ME...in todays soceity it does seem to be all about ME (so that should work well).

On a more serious note we are once again delivering strong cash returns and the diversification of offerings looks very strong and still very relevant to the various communities the company serves, as well as others that it does not currently.

I think this is now an exciting company that will not only see recovery but also has great growth opportunitiesin front of it.

[tradertrev] 12/7/2021 13:28

With all due respect, it might have been better to read the whole statement (as I had done) before passing and posting judgment.

[jojaken] 12/7/2021 10:53

Having read the results carefully, I'm more satisfied. Information is there, such an acquisition in Japan bolstering revenue there. You just have to look for somethings, which you'd expect in the opening pages, further down. Overall lots of promise of returning to a future similar to that pre-pandemic. Hope the dividend will go back to pre-pandemic levels too.

[jojaken] 12/7/2021 09:42

Of course the last sentence should have read, 'Smoke and mirrors do NOT help with trust. And trust is what is important, at least for me. '

[jojaken] 12/7/2021 09:22

With all due respect, perhaps I'm not the one who's missed the point and certainly not the boat. (I'm have been a very long term holder and not terribly concerned with daily movements)Back in the trading-up date the company said they were increasing sales expectations from £175million to between £190million and £200million. And profit before tax from £9million to between £15million to £19million. Today they announced revenue of £94.6 and profit of £12million. As MyNumber sales have "reverted to pre-March 2021 levels" as I tried to forewarn some months back the MyNumber expectations had to be taken with some caution. Yes, the company might be doing better, but the MyNumber expectations need to be adjusted down while other parts of the financial report are adjusted up. They may still make those "expectations", but not from the MyNumber sales, which are now DOWN considerably fro where they were. Exactly how much, we don't know as they don't break those figures out despite all the other 'detail'. What is fairly obvious is that if MyNumber sales made such a large impact in the first half, some thing else is having to make up an equally large impact in the second half or those expectations are going to be a the bottom of the range. Which is fine. They are good numbers for this type of company in a global pandemic. As I said I've been a long term holder. What I don't like is when companies are not clear on what the figures mean. Smoke and mirrors does help with trust, which is essential for someone like me.

[tradertrev] 12/7/2021 08:29

Someone missed the boat methinks!
Personally I thought the statement was a model of transparency, also specifically mentioning that Japanese revenues had fallen back again in May. Trading updates during lockdown periods are inevitably going to be laced with caution.

[jojaken] 12/7/2021 07:47

So the MyNumber boost to sales in Japan is not going to be repeated in the second half. Why don't they just clearly say that. And again why mislead in the trading update to the first half a few months back? They could already see sales had reverted to normal levels after the end of the Japanese tax year at the end of March. Smoke and mirrors! But why?

[masurenguy] 12/7/2021 07:31

Good set of interim results, with sales, pretax and net cash all ahead of the first half last year .

Financial summary

-- Revenue was up 3.4% to £94.6 million (2020: £91.5m), resulting mostly from reduced restrictions on the movement of people and customers compared with the comparative period
-- EBITDA increased to £28.7 million from £16.7m(1) million in the prior year period
-- Reported profit before tax increased to £12.0 million
-- Cash generation was up 52.4%
-- Net cash position of £16.9 million, an increase of 113.9% from the same period in the prior year

Operational summary

-- A stronger than anticipated recovery of revenue for Identification business (+3.4%), lost as a result of the COVID-19 pandemic, particularly in Japan, France and the UK
-- Laundry operations continued to perform well with total revenue for laundry operations up 23.2% to GBP23.9 million
-- Expansion of Revolution laundry operation continued, with revenue up 15.8% and the total number of Revolution units in operation up 17.4%
-- Multi-country restructuring plans completed during April 2021 - progressing plans to remove additional unprofitable machines from operation across China and the UK
-- Continued focus on new product innovation and diversification of operations to meet ever-changing consumer needs
-- Launch of ME Group, new corporate brand strategy to reflect diversification of operations

Serge Crasnianski, CEO and Deputy Chairman, said:"The Group has had a better initially expected start to the current financial year, with a promising return to pre-COVID business conditions. We have completed a multi-country restructuring programme which has radically reorganised our business areas and our country management. This includes a restructure of operations in the UK, which is expected to return to a cash positive position in the short-to-medium term. We are introducing new photo services and upgrading our photobooths. ID photos are proving to be a sustainable market, serviced through our established network and partnerships with site owners, including in the UK. We continue to have a great success in the rollout of our Revolution laundry machines in petrol forecourt locations, and our first 100 self-service apple juice machines have been delivered to the market alongside our 2,700 orange juice machines. In addition to the above, our new corporate brand name, ME Group, is being rollout across the Group, which will reinvigorate the Group's relationship with its B2B partners and consumers. Looking ahead, I am confident of a return to our fundamentals more quickly than previously expected, unless the COVID situation presents new difficulties."

[masurenguy] 05/7/2021 07:12

Interims due next Monday.

[prokartace] 21/6/2021 11:22

Picked up some more on this dip

[brucie5] 19/6/2021 12:49

Was in Norwich recently - lovely city- when I popped into a Sainsbury's local near city centre. Orange juicing machine almost opposite to the doorway looked irresistible, so I duly started to fill up only to find it was temporarily out of oranges, presumably due to good demand. The assistant duly fetched some more and rolled them all into the feeder. Seems like cash cow to me, analogous to the ubiquitous Costa coffee machines, except healthier!

Unfortunately, It didn't look much like this one!

hxxps://www.photo-me.co.uk/activity/fresh-juice-vending/

[ch1ck] 17/6/2021 12:27

Having said that I sold out as I agreeThe model is flawed