Laundry continues to be the biggest driver of growth for Photo-Me International (PHTM). The group’s network ballooned 47.7 per cent in the six months to the end of October 2017, ending up at 2,332 units. Shareholders can also take heart from a 7.7 per cent increase in the average monthly takings per unit to €1,508 (£1,332). The combination of these figures suggest future growth is likely to come from this segment, aided by an ongoing programme to acquire profitable laundrette outlets.
However, the identification business also looks set to grow. The group continued the rollout of its passport photo ID technology in Ireland, and agreed with the UK’s passport office to begin rolling out an online passport service this month. Management is targeting the conversion of 2,000 existing photo booths to include passport photo functionality.
The group’s net cash position improved since its year-end, and was achieved in spite of £34.6m in dividend payments and further investment in the business amounting to £34m. Overall, cash profits were 11.4 per cent up on the 2016 half year to £44.9m.
Analysts at finnCap are forecasting adjusted pre tax profit of £50.5m, giving EPS of 9.8p in the year to April 2018 (from £48m and 9.3p in FY2017).
| PHOTO-ME INTERNATIONAL (PHTM) | ||||
| ORD PRICE: | 186p | MARKET VALUE: | £700m | |
| TOUCH: | 185.5-186p | 12-MONTH HIGH: | 189p | LOW: 138p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 34p* | NET CASH: | £47.1m | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 111 | 31.0 | 5.86 | 3.09 |
| 2017 | 122 | 32.9 | 6.43 | 3.71 |
| % change | +11 | +6 | +10 | +20 |
| Ex-div: | 5 Apr | |||
| Payment: | 11 May | |||
| *Includes intangible assets of £27.4m, or 7p a share | ||||
