Skip to main navigation or content
It's been a challenging year for photo-booth operator Photo-Me. Difficult trading conditions led to a management overhaul early in the year, and the new team implemented a strategic and operational review that led to a major restructuring of the group.
Advertising
Reported losses ballooned as a result of one-off charges of £14.8m - including redundancy costs of £3.2m and £4.3m spent on 'professional' costs associated with the review process itself - and the accelerated depreciation of some booths, which cost it a further £5m.
Perhaps the most important result of the review, though, was the decision to halt the disposal of Photo-Me's core vending business, which grew revenues by 4 per cent over the year. New chief executive Thierry Barel warned that the trend towards the centralisation of biometric data and digital images may constrain demand for passport photography, but management is looking to incoporate other digital media such as music and mobile office services into kiosks alongside traditional photo printing.
Broker Hardman & Co are yet to release any update on its 2009 EPS forecast of 0.9p.
PHOTO-ME (PHTM) |
||||
|---|---|---|---|---|
| ORD PRICE: | 12p | MARKET VALUE: | £42m | |
| TOUCH: | 11.75-12p | 12-MONTH HIGH: | 81p | LOW: 10p |
| DIVIDEND YIELD: | na | PE RATIO: | na | |
| NET ASSET VALUE: | 21p | NET DEBT: | 59% | |
| Year to 30 April | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 237 | 33.9 | 6.18 | 2.00 |
| 2006 | 225 | 28.0 | 5.53 | 2.40 |
| 2007 | 213 | 15.7 | 2.78 | 2.40 |
| 2008 | 210 | -21.7 | -5.32 | 0.00 |
| % change | -1 | -238 | -291 | -100 |
Ex-div: na Payment: na *Includes intangible assets of £30.5m, or 8p per share |
||||
Click here for a guide to the terms used in IC results tables.
Photo-me is in a difficult place. The growth of digital photography means its main business is in long-term decline, and shares have already fallen by 25 per cent since our sell advice (Sell, 16p, 3 April, 2008), which we stand by. Sell.
The UK’s No.1 Stockbroker
Access a selection of share tips, comprehensive company analysis and full financial data on listed companies. Plus portfolio tools with advanced alerts when you register for free here.
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Piccarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
