Photo-Me International’s (PHTM) core identification business experienced a 3.3 per cent revenue contraction at its half-year results, as the photobooth and vending group suffered the effects of a UK slowdown driven by Brexit and a relaxation of domestic rules concerning passport photos.
The group’s profits climbed over the half-year period, in part driven by an expansion of its laundry business, whose Revolution machines posted a revenue increase of a quarter, with the laundry segment contributing a fifth of overall turnover. Photo-Me earmarked new food segment, KIS Food, as “a significant part of the group's future growth strategy” – KIS was formed after Photo-Me’s April acquisition of Sempa and marked its entry into fresh fruit and vegetable juice. It provided £3.5m in revenues.
Yet the group’s identification segment, which made up nearly two-thirds of Photo-Me’s turnover and is also considered part of this growth strategy, fell behind during the period. Photo-Me cited Brexit and the government’s decision to accept photos taken at home for passport identification as key drivers in lower consumer activity.
House broker FinnCap forecasts adjusted full-year 2020 pre-tax profits of of £46.5m and earnings per share of 9.5p, rising to £47.8m and 9.8p in 2021.
| PHOTO-ME INTERNATIONAL (PHTM) | ||||
| ORD PRICE: | 90p | MARKET VALUE: | £340.2m | |
| TOUCH: | 89.1-90.4p | 12-MONTH HIGH: | 108p | LOW: 75p |
| DIVIDEND YIELD: | 9.4% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 35.1p* | NET CASH: | £25.2m | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 119.8 | 26.0 | 5.33 | 3.71 |
| 2019 | 123.9 | 28.3 | 5.95 | 3.71 |
| % change | +3 | +9 | +12 | |
| Ex-div: | 5 Apr | |||
| Payment: | 11 May | |||
| *Includes intangible assets of £41.6m, or 11p a share | ||||
