Photo-Me is a share which is just set to rocket. Please just have a look at this report.

UK’s largest operator of coin operated photo booths.
Previous spectacular growth richly cash generative operation
2000-2001 various issues caused collapse in share price
Issues been resolved but now other opportunities arising as well
Digital photo-processing machine manufacture making most of surge in popularity of digital photography
Largest customer Kodak (supplies the minilabs to the likes of Jessops and Boots)
Orders starting to build could soon lead to 125m turnover in this new part of the business

Photo booths 77% of 2003 forecast turnover (141m of 183m)
Digital Minilabs manufacture 38m

Last 5 years PHTM spent 186m on converting its analogue photo booths to digital
Caused increase in debt 2001
Debt now falling away rapidly as cash flow rises fast
Main areas of operation (75%)are UK, France and Japan
France and Japan highly profitable - UK some completion from Snap Digital (who are operating on possibly unsustainable terms to try and poach customers – may go bust inside 2 years)
UK situation now stabilising

Minilabs is the “big ticket” potential
Forecast to be 23% of 2003 sales
Digital cameras now 40% of all cameras purchased
So far only 5% of 200,000 photo processors have converted machines from analogue to digital
Kodak is world market leader – has 30-40,000 machines in US, UK,Europe up for renewal
Kodak has ordered DKS 1500 machine from PHTM – cheapest most efficient machine on the market.
PHTM expects to increase production of this machine to 200 per month – will at some point sub-contract this to China to cut costs and allow PHTM to concentrate on remaining market leader by developing next generation Digital Minilabs.

Schroders have been buying stock (17.1%)

They are in MI and SCSW portfolios – a 2003 Nap for MI and they say “keep buying” G.

Looks like this broker report upgrade from 16th has been missed......

http://www.hardmanandco.com/Research/Photo-Me_June2010.pdf

Photo Me International 34.5p
Surprise Statement - Upgrade
16 June 2010

The surprise Trading Statement from Photo-Me International
prompts our fifth consecutive upgrade on this very interesting
company. The news that profits for the year to end-April 2010
will exceed expectations by at least 20% - leads us to
UPGRADE our current year profit forecast from 10.5m at the
pre-exceptional adjusted pre-tax level to 12.9m.
Information from the company is necessarily very limited
because it is in close period ahead of the July 7 results
announcement, but our reading of the situation indicates the
following key points:
Foreign exchange. We expect Photo-Me to have an
average Euro UK Pound exchange rate for the year
of 1.13, an improvement on the 1.19 of the previous
year (and somewhat more favourable to the group than
the current Euro 1.20 = UK1). 48% of revenue in 2009
came from Europe and a further 18% from Japan
where currency movements were similar.
Cost savings, which we put down to the return of Serge
Craskianski as Chief Executive.
An improved performance by KIS i.e. the Sales &
Servicing Division where we know there has been a
great effort at cost reduction. We think this also means
that early sales of the new Photo-Book model in France
may have been better than we expected.
Successful re-siting of photo-booths and other
machines into higher throughput locations. In particular,
Photo-Me suffered at the end of the previous year from
the failure of Woolworths in the UK.
We are upgrading also for the new financial year, to April 2011.
If current rates are maintained, currency will be working against
Photo-Me, however. Also, in H2 2010/11 Photo-Me will have as
its comparative what has clearly been an improved Winter and
Spring in 2009/10. So we are keeping our 2011 upgrade
modest.
Overall though, this company is trading on an EV/EBITDA of
2.5, at the bottom of its trading range of 2.5-3.5.
Share Price: 34.5p
Q3-2009 Q4-2009 Q1-2010 Q2-2010
Source: Fidessa
10
15
20
25
30
35
40
45
50 PHTM PHOTO-ME INTL. ORD 0.5P
.UKX rebased to PHTM
12m High: 45.5p
12m Low: 14.75p
Market Cap: 125m
Shares in Issue: 360m (368m inc. shares held
in Treasury)
NAV/Share: 22p inc. intangibles
Gearing: 4%, 3.1m net debt at 10/2009,
expected to be cash positive for 4/2010
Interest Cover: 8.8X at Interims
EPIC Code: PHTM
Sector: Leisure Goods
Market: London Full List
Broker: JPMorganCazenove/Evolution
Securities
PR: The Madano Partnership +44 (0)20 7593
4000
Website: www.photo-me.co.uk
Description: Photo-Me operates photobooths
and other vending equipment throughout Europe
and Japan. It also manufactures printing kiosks,
photo album machines, minilabs and other
photo processing equipment. The co. services
equipment for itself and third parties.
Analyst: Roger Hardman
Tel: +44 (0)20 7929 3399
Email: research@hardmanandco.com
Y/E Group
Sales
Adjusted
EBITDA*
Adjusted
Pre-tax
Profit*
Adjusted
EPS*
EV/
EBITDA
P/E
ratio
Divi
Yield
April m m m p. p. %
2008A 193.5 36.5 -6.3 -1.8 3.7 - - -
2009A 210.5 38.6 1.6 0.2 3.5 174 - -
2010E 226.8 44.0 12.9 2.4 2.5 14.5 0.5 1.5
2011E 224.5 44.0 13.4 2.4 2.2 14.5 0.75 2.2
* Before exceptional items
Leaders

Results this Wednesday

Published Date: 04 July 2010 -- By Martin Flanagan -- City Editor

PHOTO-ME, the photo booth maker fined 500,000 earlier this month by the Financial Services Authority for making misleading statements to the market, will continue its bridge-building efforts with the City this week with an expected hike in annual profits.

The company, which at one time became known for its serial profits warnings, incurred the "largest fine of its type" on 21 June for retaining vital trading information that led to what the regulator called "a false market in Photo-Me's shares for 44

The FSA said the firm had information in January and February 2007 that it was no longer in exclusive discussions for a contract for its "minilab" processing equipment and that minilab sales were below expectations. But Photo-Me did not issue a profit warning until 2 March that year.

However, Photo-Me is expected to show a continued trading resurgence when it reports annual results this Wednesday, having said in an update earlier this month that it expected full-year underlying pre-tax profit to be "at least" 20 per cent ahead of market expectations.

Broker Hardman & Co said that following this guidance it had upgraded its profit forecast to 12.9m from 10.5m on sales of 226.8m, with a dividend payment of 0.5p restored. There was no shareholder payout the previous year when Photo-Me made a profit of 1.6m on sales of 210.5m. Analyst Roger Hardman said in a recent note that he expected an improved performance from KIS, the company's sales and servicing division, "where there has been a great effort at cost reduction".

The note said that the company had probably benefited from the "successful re-siting of photo booths and other machines into higher throughput locations. In particular, Photo-Me suffered at the end of the previous year from the failure of Woolworths in the UK".

Hardman said the group would also have benefited in the year to end-April from more beneficial exchange rates between sterling and the euro, with 48 per cent of the company's revenues in 2009 coming from Europe.

Photo-Me said after the regulatory ruling that it was disappointed with the size of the fine and that the FSA had underestimated the difficulties the company faced in updating the market on the possible outcome of the contract negotiations. It said it would not appeal as it was "not in the best interests of shareholders to incur further legal costs"

Some interest on the share this morning ahead of results tomorrow. Many more trades than lately and share price at 34.25p

35 / 36p +2.50p

is now on the move up as volume pick up

Plus market trades

Announces its results for the year to 30 April 2010.

Turnover up 5.7% at GBP222.5million (2009: GBP210.5million) and by 0.4%
on a constant currency basis
� Adjusted Operating Profit up 201% at GBP15.1million (2009: GBP5.0million)
driven principally by a strong turnaround in the sales and servicing business
� Adjusted EBITDA increased by 15% to GBP44.2 million
� Adjusted Pre-tax Profit of GBP14.0 million, up from GBP1.6 million
� Pre-tax Profit of GBP9.3million compared to a loss of GBP5.1 million in
2009
� Cash position improved by GBP31.6 million leaving net cash balances of
GBP8.1 million
� Dividend restored
� On 6th July 2010, rental agreement on building in Grenoble renewed with
EDF generating rental income of around GBP10 million over 9 years

RESUME

Photo-Me triples adjusted operating profit , resumes final divi

Instant service equipment group Photo-Me International restored its final dividend after reporting a 201% increase in adjusted operating profit for the year to April 30 to 15.1m from 5.0m.

Turnover was up 5.7% at 222.5m from 210.5m, by 0.4% on a constant currency basis.

Adjusted pre-tax profit rose to 14.0m from 1.6m.

Reported pre-tax profit after 4.8m of exceptionals was 9.3m, compared with a loss of 5.1m in 2009.

The group's cash position improved by 31.6m, leaving net cash balances of 8.1m.

It recommended a final dividend of 1p a share, making a total for the year of 1.25p.

Chairman John Lewis said it had been a year of 'continued positive change and progression' for Photo-Me.

'We have seen a further step change in our financial performance with a considerable improvement in adjusted operating profit, principally driven by a significant turnaround in our Sales & Servicing business.'

He added, 'Looking forward, the business has a clear plan to improve its substantial core photobooth operations through an active management programme to increase the number of sites we operate by optimising their locations and continuing to bear down on associated costs.

'Moreover, our strategy to develop complementary products that build on our photobooth strength but offer new diversified streams of revenue and profit growth is continuing to take shape.

'In particular, the continued development and market interest in our award-winning Photobook Maker provides a good opportunity for the future.'

Sales & Servicing divisional sales were up 7.2%, with a 7.8m improvement in the division's operating result.

The group's Operations business produced 'a very creditable performance given continuing difficult market conditions'. Turnover for the division was 1.5% lower but operating profit improved by 30% as costs were contained.

Disposal of Imaging Solutions, the loss-making wholesale photo-processing labs business, was completed in July 2009.

Corker of a new update and results.

Broker Hardman upgrade........


http://www.hardmanandco.com/Research/Photo-Me_9July2010.pdf

From Pro TAer Zak Mir posting earlier this morning.......

Zak Mir



Reged: 28/06/07
Posts: 1339
Re: Photome
#467455 - 14/07/10 08:06 AM Edit Reply Quote



Multiple support points for PHTM AT 30p since February suggests that while above the 200 day moving average at 36p the upside for the stock should be post December resistance above 45p on a 3 month view.

Post Extras:

Many will cash in on results

Lots of upgrades and cash machine, this looks to be getting on the radar more now

Finally breaking out here. Excellent results from H1 and more upgrades. Awash with cash and new strategies coming to fruition. Looks dirt cheap.

Good performance today with sustained rise at the close. Volume improved too.

Looking good after the strong start of the day, it finished much better

The spread on this stock always deceptive, that and market makers moves but clearly a few more picking up on how undervalued phtm is and what a cash generating machine it is. Apparently tipped in Momentum Investor, not that I subscribe to it currently, though have in the past.

mini chart breakout coming?? Happy to buy dips in this. Added.

Market Movers - Top risers and fallers between 13:00 and 14:00

Overall Market
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JOHNSTON PRESS ORD 10P 18.00 2.86%

On a higher BREAKOUT as it goes over the Intraday high last December

Great move of late, won't be too long before investors wake up to the growing cash mountain.

Grey - yes the penny is dropping.........huge potential now the insider dealing cock up has been sorted multi bagger in the making!!!!!!!imho