Photo-Me International (PHTM)

Photo-Me International PHTM Logo

25-Oct-2017 – 171.25p – £636.7m

Trading Update For The First 5 Months Of The Year – LFL Revenue up 11.2% (CC) consistent with full year expectation and “cash generation remains strong. This continues to support our progressive dividend policy”.

As a holder here, would have liked a more upbeat statement. I have a concern that growth seems to be slowing slightly for the PER of 16.8. However, the ROCE (30%+) is great as is the yield (4%+ plus special dividends). It’s also got a decent amount of cash (5% of Market Cap) which, when it gets too big, is usually paid out to fund those special dividends. I remain a holder here but don’t see this pushing through the elusive 180p ceiling off the back of this update.

11-Dec-2017 – 187p – £704.7m – PER 18.3

Interim Results For The 6 Months To End October 2017 – Revenue up 10.5% to £122.2m (7.8% CC), PBT £32.9m (up 6.1% (3.1% CC)), Net Cash of £47.1m up £7.9m from 30 April 2017 and the Interim Dividend is up 20.1% to 3.71p per share. Laundry revenues up 75% to £17.3m (H1 2017: £9.9m) – Remains the primary growth driver of the Group. Continues to perform in-line.

Covered because I hold from when it was a smaller Market Cap than this. I remain a holder for now (mainly for the yield) as these results are not exactly inspiring! Wondering when the name will change to Laundry International!

Subsequent note: I sold up here in May 2018 after a long overdue tidy up. My main reason for exit was the forecasts did not look so great, EPS +3% next year and +7% the year after. I will now cease coverage as it is currently above my usual £500m Market Cap limit.

10-Jul-2018 – 109.4p – £413.0m – PER 12.1

Results For The 12 Months To End April 2018 – Revenue up 7.1% to £229.8m (5.9% at CC), Underlying PBT up 0.3% (down 1.6% at CC), Net cash £26.7m, Total Ordinary Dividend up 20% to 8.44p.

Looks to be as expected here and after selling out in May 2018 I will remain Neutral while growth remains pedestrian.

24-Oct-2018 – 99.6p – £376.2m – PER 10.2

Trading Update For The 1st 5 Months Of The Financial Year – In-line, confident of returning to growth in FY 2019.

I will wait and see – I remain Neutral.

10-Dec-2018 – 106.2p – £401.2m – PER 10.8

Interim Results For The 6 Months To End October 2018 – Revenue down -1.7%, Adjusted PBT down -7.6%, Adjusted EPS down -3%, the Interim Dividend is the same as last year. Still highly cash generative and expects to meet previously stated 2019 FY guidance.

Nice yield, probably warrants a slightly higher valuation than this. I will wait to see how the FY looks.

3-Apr-2019 – 84p – £318m – PER 8.4

Trading Update For The 12 Months To End April 2019 – Expects PBT to be slightly below previous guidance of £42m – UK challenging.

Not sure how much of a miss this is but it’s enough to ensure I won’t be going near the Buy button any time soon – Even with a 10% Yield!

18-Jul-2019 – 91p – £344m – PER 8.7

Results For The 12 Months To End April 2019 – Revenue flat with PBT down about -15% (Brexit mentioned), EPS about -20%, Net Cash about -40%, the Dividend is unchanged.

Still can’t get any more interested here at present. Based on the latest Broker note this morning, in my opinion, this looks way overvalued on a 1 Year and 2 Year view.

28-Oct-2019 – 89p – £338m – PER 10

Trading Update For The 5 Months To End September 2019 – In-line and FY should be in-line despite uncertainty.

Tempting for the yield but not enough here for me at present, would like to have seen an update on the Net Cash position here.

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