Photo booth operator
The dividend totals about £11m, representing a yield of just over 4 per cent at the current share price. The company, which was an Aim market darling in the early 2000s, has been trying to rebuild its credibility with investors after several corporate governance scandals. For example, as recently as 2010, the company was fined £500,000 by the Financial Services Authority for failing to reveal in a timely fashion that it was no longer involved in exclusive negotiations for a contract. The special dividend will be paid on 8 March to shareholders, with an ex-dividend date of 13 February.
Photo-Me's share price is fast approaching a three-year high. For the bull run to continue, the next set of results needs to show less seasonality. But with a forward PE ratio of only seven times, after cash is stripped out, and investors receiving good income, our buy advice stands.
visible-status-Standard story-url-photome special dividend 4 Feb 2013.xml