Photo-me Share Discussion Threads

[tmfmayn] 21/6/2022 18:45

[Podcast] PHOTO-ME INTERNATIONAL With Mark Atkinson And Maynard Paton #PHTM

A pilot podcast episode with my good friend Mark Atkinson. We talked about Photo-Me and the investment potential of passport photos and self-service washing machines!

[topvest] 21/6/2022 14:42

LOL - good idea. That will put off most crypto punters - they wouldn't have the patience to wait a week! Anyway, crypto is hopefully over. As Charlie Munger said recently it is stupid and evil.

[essentialinvestor] 21/6/2022 14:35

Dr, perhaps a week between sign up and when you can start posting might help.

[topvest] 21/6/2022 13:37

I've taken a small position again, with this coming recently into a breakout chart position. c5% yield. Improving financials. Virtually a monopolistic position. To be honest, I don't think the kiosk market is necessarily in decline. The main killer in hospitality etc at the moment is wage costs. There is actually potential to have more kiosk operations.

Photobooths are also still not going away as its so difficult to do a passport photo without them. They are so monopolistic that they don't even seem to need to quote the price until it comes up on the card reader if I am not mistaken. Anyway, the one I looked at the other day had no mention of the price anywhere I could see! Sort of emphasises the point that they do have pricing power!

Boring it may be, but this is a good business. The CEO was taking the Michael at 75p and he knows it. There is a French institution building a stake, so another bid may well arise at some point.

[jsforum] 17/6/2022 20:16

The pizza machines should do well

[masurenguy] 08/6/2022 10:09

Yep - we know that !

Masurenguy 22 Mar '22 - 9136: Current price is around the 70p that SC considered to be a bargin when he acquired the Dan David shares in January. He ponied up £20m to buy them, which then triggered the mandatory bid that has now expired. Clearly he expects the shareprice to go much higher than this and the progress reported in yesterdays results explains why he took that view.

[tradertrev] 08/6/2022 09:34

Those estimates look pretty cautious to me. It's clear now that the mandatory bid was simply a result of Serge being offered a huge block at 70p which he couldn't turn down. If people were mug enough to sell him stock, then he was happy to take it.

[thorpematt] 07/6/2022 22:07

Today's Fincap note has updated estimates FY22,23,24 as follows: -


Revenues 257.3 269.4 283.7
EBITDA (pre-ex) 87.2 91.3 96.5
EBITA 51.3 53.3 56.3 1
EBITA margin 19.9% 19.8% 19.8%
PBT 48.5 50.5 53.5
EPS (p) 89.8 10.0 10.4
DPS (p) 3.3 3.4 3.5
Net cash / (debt) 52.5 78.0 107.0

That divi is 3x covered by 2023 and net cash of £107m in 2024 rather speaks volumes I think.

[thorpematt] 07/6/2022 19:28

Volume was pretty heavy compared to the recent complete lack of interest
1.8m traded today.

Of the 640 or so constituents of the FTSE all share, PHTM was by far the largest riser on the today (14.7%)

This chart puts volume in context. And shows the clear breakout. Comfortable 52 week high.


free stock charts from uk.advfn.com
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This one shows some context for the larger upside move which awaits. There is a long way up. I have put the fib. levels in because we can not only see how far this is from its most recent peak, but also we can see how it has left behind the recent resistance at the 23.6 retracement (around 72p).

The MAs (200 and 90days) have bothe offered recent resistance also, and with both breached could offer support on the way up.


free stock charts from uk.advfn.com
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From my own perspective in regards valuation. I think this is a better proposition than most UK listed companies right now and warrants a valuation which is better than the average for UK stocks (PER 13). Generating £50m in PBT and having similar amounts in net cash I'd value it at, AT LEAST least £600m which equates to 159p per share.

Any updated brokers forecast could make the fPER stick out a bit.

[lovewinshatelosses] 07/6/2022 17:07

Must be institutional buying today, given the volume and strength of the SP, especially in a market like this.

[jsforum] 07/6/2022 16:48

Waiting on the pizza vending machines- the competition will fall like Dominos if they get it right

[kennewil] 07/6/2022 16:07

Resistance is futile said darlik to dr

[prokartace] 07/6/2022 13:26

There will be a lot of resistance breaking through 80p but lots of room after

[dr biotech] 07/6/2022 10:37

75p looks just like a lowball that everyone thought it was. Hopefully a decisive break upwards

[lovewinshatelosses] 07/6/2022 10:25

So that 75p offer was not an act of generosity after all? Well I never! :)
I expected a good update here and pleased to see it materialise. Thank goodness that offer was rebuffed. This was a quid a share all day long and as prok suggests, probably closer to 120p now, IMO too.
Keeping this for a medium term hold at least now. GLA.

[tradertrev] 07/6/2022 09:04

5x EV:EBIT for the current year while still on the recovery tack. Ridiculously cheap.

[prokartace] 07/6/2022 08:59

Worth way more than 75p now. Fair value around 120p

[kennewil] 07/6/2022 07:48

Yes, maybe will see the buy out price breeched at last. I hung on as management obviously saw long term value.

[masurenguy] 07/6/2022 07:40

A very encouraging and positive update !

Trading Update

The Group has performed above expectations in the year to date. Group revenue for the period was up 24.2% compared with the same period last year, with a consequential positive impact on profitability. Net cash at period end was £41.4m.

As Covid-19 related restrictions have continued to ease across the Group's key operating markets and consumers become more confident in their ability to travel and socialise, demand for the Group's services is stronger than ever . Trading has now returned to pre-pandemic levels across all markets bar Asia. Our photobooth business remains an important part of the Group's long-term growth strategy and we continue to invest in upgrading the estate with our innovative next generation machines. We saw a significant increase in revenues driven by our photobooths in the period, particularly in France and the UK, as we benefitted from pent-up demand for passports, other official documentation and all other products delivered by our photobooths. In Asia, where some restrictions remain in place, trading continues to be more subdued, but the Board is confident that Japan will pick back up when restrictions ease, as has been the case so successfully in Europe, which bodes well for the coming months.

The Group continues to make strong progress against its growth strategy, underpinned by the rollout of its new corporate brand strategy, ME Group. This continues to strengthen the brand proposition and better reflects the Group's recent diversification and investment in innovation. This includes our continued emphasis on growing our laundry division, which continues to perform and develop strongly. We installed 53 machines per month throughout the period, with further significant international growth expected in the laundry division in the coming months and years.

Furthermore, in order to expand the laundry range and better position ourselves in the market, we recently launched a new low-cost laundry machine, the "Flex", and have already successfully carried out several installations across Europe. Early trading results have been extremely positive, and so the Group aims to further deploy this new product rapidly across the continent in order to take advantage of the strong market opportunity. Meanwhile, the Board continues to see that the food business, including the new pizza vending offer, is proving very attractive and represents a great future development opportunity.

Outlook

The Group's strong start to 2022 is particularly pleasing against a backdrop of economic and consumer uncertainty, of which the Board remains aware and continues to monitor closely. In keeping with most businesses around the world, the Group has had to face a significant increase in supply chain and raw material costs. However, its strong position in the markets in which it operates gives the Group significant pricing power. The Board therefore believes that the Group's performance for the year ending 31 October 2022 will show revenue up at least +20% over FY 2021 and adjusted PBT in the range of £47m to £50m, assuming that Covid-19 or other social restrictions are not re-imposed.

The Group will publish its interim results for the six months ended 30 April 2022 in mid-July.

[lovewinshatelosses] 01/6/2022 09:10

Positive write up in the motley fool the other day. I do like a bit of confirmation bias sometimes :) GLA.

[pj 1] 03/5/2022 15:15

Thank you TM

[thorpematt] 02/5/2022 23:28

£608k

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