Expanding the size of its launderette business has helped spur Photo-Me International (PHTM) to a record first half performance. The photo booth and launderette equipment company increased the number of laundry units in its continental Europe division by 51 per cent in the half-year helping drive a 79 per cent increase in takings to £9.9m. The company has also moved aggressively in France, Ireland and Portugal, with monthly sales per unit from more established machines now at €1,400 (£1,176). It's just started rolling out a new Revolution 2 format which, like its predecessor, comprises two machines and a dryer but is half the size a five square metres.
There have also been important developments in the photo booth business. Halting expansion in Europe has facilitated technology upgrades for all 7,800 units so e-photos and e-signatures can be sent for driving licence applications. Finance director Gabriel Pirona said while it didn't have an exclusivity contract with the French government, the company's size and technology provided a significant barrier to entry there. Passport applications will also be able to be sent from its booths in Ireland.
Broker finnCap upgraded its pre-tax profit forecast for the year to April 2017 by 14 per cent to £48m, leading to EPS of 9.2p compared with £40.1m and 7.8p in FY2016.
| PHOTO-ME INTERNATIONAL (PHTM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 163p | MARKET VALUE: | £614m | |
| TOUCH: | 163-164p | 12-MONTH HIGH: | 182p | LOW: 122p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 36p | NET CASH: | £68m | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 92.7 | 25.8 | 5.0 | 2.58 |
| 2016 | 110.6 | 31.0 | 5.9 | 3.09 |
| % change | +19 | +20 | +17 | +20 |
Ex-div: 6 Apr Payment: 11 May | ||||
