Photo-me Share Discussion Threads

[topvest] 19/7/2022 14:34

A fantastic update amidst all the gloom and doom. Its certainly worth somewhere between £1 to £1.50 as is. They have real pricing power on the photo booths that's for sure. If the other vending activities become successful the rating could improve. Let's face it, with labour prices so high, vending machines are becoming a much more viable operation again particularly for hospitality products (juices, pizza's etc) and the laundry operation. Fantastic dividend also on offer. Undoubtedly, there is some catch-up impact on photobooths this year, but its impressive how they can adjust prices with virtually no competition (i.e. even with high quality digital camera's it is very difficult to DIY a passport photo).

[tradingsun1] 19/7/2022 13:43

The technicals also look promising - Since 21st May 2018 this share has been trading below its 204 ema. It finally broke out over it again on the week of 6th June.
In other words - it suggest that the long term trend is finally upwards again.

[prokartace] 19/7/2022 13:39

This statistic made me laugh.

Since 2/21 I have traded in and out 5x , mostly partially and have made about 100% on my invested capital.

When I looked at my original purchase at 45p, if I had not touched my holding, yes you guessed it, I would have doubled my money.

There may be a lesson there but I'm not sure what it is!

[lovewinshatelosses] 19/7/2022 12:46

prokartace has pretty much summed it up :)
Given the macro outlook, not withstanding the seemingly strong moat here, a quid looks like fair value for now IMO.
If we can sustain this growth throughout the autumn and winter (and the challenges that I feel we might face then globally), then maybe new multi-year highs might be viable. But that is running after we have remembered how to walk. Just nice to enjoy the moment for now. GLA.

[givmesunshine] 19/7/2022 10:16

Barnstorming performance - full year could be looking @ 15% year divi - See the statement about returning profits to shareholders? plus company is EBITDA and Cash puts this on a very low rating when you consider the amount they are investing in growth

[goforgold1] 19/7/2022 09:03

Leaky Leaky those in know selling now in at 75p out over 90p while pis buy

[masurenguy] 19/7/2022 08:40

re #2914."Sell on the news, buy on the rumour" ! There are always some profit takers and short term traders around who react to an upward price spike after good news.

[xxx] 19/7/2022 08:32

Perfectly reasonable question. stale order ?

[johndoe23] 19/7/2022 08:14

Silly question but why on earth are people selling this morning??

[xxx] 19/7/2022 08:09

Goood figures, though it raises questions about how much information was kept from shareholders regarding trading. I met him once and his disdain for shareholders was evident.

[prokartace] 19/7/2022 08:06

No wonder the little weasel wanted to buy back the company at 75p!!

[markhutch] 19/7/2022 08:01

Special div 6.5p 1 Sept
Interim div 2.6p 3 Nov

[cravencottage] 19/7/2022 07:53

Any idea when we can look forward to receiving divis?

[masurenguy] 19/7/2022 07:40

The 33% uplift in photobooth prices, which has not impacted demand, is evidence of their pricing power with little competition in that market.

[jonals] 19/7/2022 07:37

This was also a positive...

"During Q2 2022, we reviewed the end-user pricing of our photobooths and the cost per use was increased by 33% from EUR6 to EUR8. This change in price has not impacted consumer demand to date and we plan to implement similar price increases across most of our operating markets during H2. The full benefit of this will be evident in FY 2023."

[jonals] 19/7/2022 07:33

With the stated dividend policy of 1/3 + 2/3 that should mean 2.6p interim + 5.2p final. So 7.8p for the year. And a special dividend of 6.5p.

[johndoe23] 19/7/2022 07:23

Should be rising today...

[masurenguy] 19/7/2022 07:22

Great set of interims !

Financial summary

-- Revenue was up 21.9% to £115.3m (H1 2021: £94.6m), resulting mostly from the continued easing of Covid-19 related restrictions across the Group's key operating markets and subsequent positive impact of increased demand for passports and other official documentation

-- EBITDA increased by 40.1% to £40.2m (H1 2021: £28.7m)

-- Reported profit before tax increased by 65.8% to £19.9m (H1 2021: £12.0m) £29.8m (H1 2021: £22.4m)
-- Net cash position of £43.2m, an increase of 155.6% (30 April 2021: £16.9m)

Operational summary

-- Photobooth business saw a stronger than anticipated recovery as travel and social restrictions were eased. Revenue was up 27.4% which is a testament to the resilience of the photobooth market

-- Laundry division operations continued to perform well with total laundry revenue (Revolution laundry operations and sale of machines) up 8.4% to GBP25.9 million

-- Expansion of Revolution laundry operations continued and revenue was up 37.5% to £25.3m. The total number of Revolution units in operation grew by 15.9%

-- Continued focus on new product innovation and diversification of operations to meet ever-changing consumer needs, with new products launched and technology partnerships announced

-- ME Group corporate brand rolled out across the majority of operations - plan to change listed entity name shortly, to align to the new corporate brand strategy and reflect broader based concession offer.

Outlook

-- Expect performance for the year ending 31 October 2022 to show revenue growth of at least 20% compared with FY 2021

-- EBITDA to be in the range of £79m to £84m, assuming that Covid-19 or other social restrictions are not re-imposed in our key markets

-- Adjusted profit before tax expected to be in the range of £47m to £50m

Serge Crasnianski, CEO and Deputy Chairman, said:"We are proud to announce an extremely strong first half performance, ahead of the Board's expectations. Demand for our machines continues to grow at pace, as economies reopen and confidence returns among consumers globally, and we are working hard to keep up with evolving trends and consumer needs. We look forward to maintaining this strong growth as we celebrate our 60(th) year as a listed company, investing strongly in innovation and rapidly upgrading to the next generations of our machines across all business areas, including photobooths, laundry and food vending. The opportunities for the Group and our consumers are endless, supported by our ME Group corporate brand which better reflects our strategic diversification. Our plans to change the listed entity name later this year will be an important start to the next chapter of our growth story.

We are also very pleased to reward our loyal shareholders with a special dividend this year as a result of the Company's strong cash position, particularly after the freeze on dividends during the worst of the pandemic. This along with our progressive dividend policy reflects the Board's optimism for the future. We are grateful to all our partners and our employees who have helped us throughout the challenges posed by Covid-19. The Board believes that the Group's ability to come through the pandemic in such good shape and increase its profitability is testimony to the strong fundamentals of the Group and its resilience in the face of adverse economic headwinds."

[cravencottage] 19/7/2022 07:03

Special Divi 6.5p

[albert arthur] 19/7/2022 07:03

Very nice results!!!

[masurenguy] 18/7/2022 09:18

Interims tomorrow. The trading update, issued 5 weeks ago, stated:

"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. 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 in our key markets."

[crazycoops] 18/7/2022 09:12

Thanks CC. Out of interest, what were the other four?

[cravencottage] 16/7/2022 11:43

Photo Me is highlighted in this weeks Investors Chronicle as one of their 5 Zulu principle Slater stocks for 2022

1 PEG 0.4
2 Forward PE 7
3 Forward D/Y 5

[johndoe23] 15/7/2022 15:30

Fwiw, looking at level 2 i reckon there is a seller there