The lens wasn't set as expected at Photo-Me International (PHTM), leaving the picture a little blurry. The total anticipated dividend per share was 20 per cent below the expectations of broker Canaccord Genuity, after a change in Photo-Me's net cash definition led to a smaller than expected special dividend. And management's February prediction of pre-tax profit above £40m only just proved true. In response, the company's shares fell 17 per cent in early trading.
The performance in Japan stood out as revenue rose 16 per cent and profit grew by more than two-thirds. The rollout of mandatory ID cards there has been a boon, but administrative and technological problems at local government level mean the scheme, and thus growth for Photo-Me, is likely to be curtailed this financial year. Both Canaccord and FinnCap reduced their pre-tax profit expectations by £2m accordingly.
Continental Europe, which represents 61 per cent of underlying operating profit, benefited from the rise in higher-margin Starck booths (which now number 3,780) and the continued success of its Revolution laundry sites. Takings at the latter of €1,282 (£984) per unit per month represented a 7 per cent improvement on the prior year, according to interim finance director Gabriel Pirona.
Analysts at Canaccord now expect adjusted pre-tax profit of £42.1m in the year to April 2017, leading to EPS of 8.2p, compared with £40.1m and 7.8p in FY2016.
| PHOTO-ME INTERNATIONAL (PHTM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 138.8p | MARKET VALUE: | £521m | |
| TOUCH: | 138.8-139.8p | 12-MONTH HIGH: | 186p | LOW: 132p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 32p | NET CASH: | £62.4m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 208 | 20.1 | 4.0 | 2.50 |
| 2013 | 196 | 24.3 | 4.8 | 3.00 |
| 2014 | 187 | 30.1 | 5.8 | 3.75 |
| 2015 | 177 | 38.5 | 7.5 | 4.88 |
| 2016 | 184 | 40.1 | 7.8 | 5.86* |
| % change | +4 | +4 | +4 | +20 |
Ex-div: 6 Oct Payment: 10 Nov *Not including a special dividend of 2.815p a share | ||||
