Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Why Photo-Me is a Picture of Health

By Malcolm Stacey

1 April 2016 01:30

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Hello Share Flickers. For many months now, I’ve been bringing you shares which you may not have considered before. I’m delighted that some of these companies have shown tasty improvements, despite a very downbeat City at the mo.

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Comments

Saint Allard

5 April 2016, 14:39

Photo booths are only half the story! This company is leading the Revolution in laundrettes and 3D printing. It’s highly cash generative and a special dividend will likely push the yield closer to a whopping 6%. PHTM is also a contender for the FTSE 250
Malcolm Stacey

6 April 2016, 02:41

Hello Sainty. You are perfectly right – it does do that other stuff, very successfully. And it attracts the cash. I plan to buy some more on those reminders of yours.
alcira16247

6 April 2016, 04:07

Malcolm

I fully agree with your sentiments. Photo – Me is a great company, highly cash generative and sound strategies in place to grow the business forward.

As an investor focused on income, I particularly like this promise from the company :-

“Fundamentally, the mature photobooth estate provides a steady and highly cash
generative stream of earnings from which the Group pays attractive dividends
(commitment of +10% pa plus return of cash on the balance sheet in excess of
£50m) alongside funding investment into the diversification of the business and the
development and protection of its existing position.”

According to Canaccord Genuity forcasts are pencilled in @

FYE Apr 2015A 2016E 2017E 2018E
Sales (£M) 177.2 187.8 205.3 218.5

PBT Adj (£M) 35.0 39.9 44.3 47.5
EPS Adj&Dil (p) 6.5 7.7 8.6 9.2
DPS (p) 4.9 9.0 7.3 9.0

Cash(£M) (60.7) (63.3) (54.9) (59.0)

For readers interested in learning more, I’d recommend -

http://www.piworld.co.uk/videos/2016/2/26/photo-me-phtm-mello-monday-15216

Where Photo-Me Gabriel Pirona, Group Finance Director gives a tremendous presentation of the company and its future plans.
Malcolm Stacey

6 April 2016, 05:59

Thanks Alcers. A Great post as usual taking my views further forward. Very grateful for the extra info.