While its Japanese business returned to profitability in FY2019, Photo-Me International (PHTM) found itself battling challenges closer to home. Economic uncertainty weighed on UK consumer activity, constricting sales at the photobooth and vending company. Sales declined by 17 per cent to £53m while operating profit plunged by 32 per cent to £7.1m. The business-to-business (B2B) division experienced reduced machine sales activity due to delays in order decisions and this weakness translated into a £9.7m adverse impact on overall group revenue.
Rather counterintuitively, the key driver of growth is the laundry division – now accounting for almost a fifth of group revenue – where sales increased by 19 per cent to £44m. This is despite a 39 per cent plunge in UK B2B laundry revenue. Sales from the 24-hour, outdoor, self-service laundry machines surged by 30.2 per cent year-on-year.
With the acquisition of Sempa in April, the group has entered the French self-service fresh fruit and vegetable juice market. Expected to contribute around €3.7m (£3.3m) in pre-tax profit in FY2020, the group plans to expand this business to other European markets.
finnCap expects adjusted pre-tax profit of £46.5m and EPS of 9.5p for the December 2020 year-end, rising to £47.8m and 9.8p in 2021.
| PHOTO-ME INTERNATIONAL (PHTM) | ||||
| ORD PRICE: | 90p | MARKET VALUE: | £ 341m | |
| TOUCH: | 89.6-90.3p | 12-MONTH HIGH: | 132p | LOW: 75p |
| DIVIDEND YIELD: | 9.4% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 37.6p* | NET CASH: | £16.3m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 177 | 38.5 | 7.5 | 4.88 |
| 2016 | 184 | 40.1 | 7.8 | 5.86 |
| 2017 | 215 | 48.0 | 9.3 | 7.03 |
| 2018 | 230 | 50.2 | 10.6 | 8.44 |
| 2019 | 228 | 42.6 | 8.3 | 8.44 |
| % change | -1 | -15 | -22 | - |
| Ex-div: | 17 Oct | |||
| Payment: | 08 Nov | |||
| *Include intangible assets of £40.8m or 11p a share | ||||
