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.

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
SEAENERGY ORD 10P 29.25 9.35%
ANGEL MINING ORD 1P 5.13 5.13%
PARTYGAMING ORD 0.015P 313.70 3.60%
PHOTO-ME INTL. ORD 0.5P 43.50 3.57%
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

I think so and with growth coming from China we could rapidly head higher in the coming months. No real resistance now until 80p ish.

65.50p +6.25p

Photo-Me starts strong

Photo-Me said it is pleased to report a very strong start to the year, with results ahead of both the comparable period last year and management's expectations.

All three geographic areas have done well, with a much improved performance in the core Operations business being of particular note despite little change in the overall trading background.

The Group has launched the Pocketbook (a new photobook maker) and has now secured two orders totalling 550 machines from two major OEMs, with delivery expected to commence in two to three months' time. This is an encouraging start and the Group continues to seek further orders with a range of relevant OEMs.

In a week's time, the Photokina show (the world's largest fair for photography and imaging) will take place in Cologne and the Group will be showcasing two of its new products. The first will be a combined photobook and Xerox machine, designed for the US market. The second is the Photobook Builder which is designed for use in conjunction with digital minilabs, the installed base of which worldwide is around 100,000. The Group believes both products have significant potential.

The results thus far build on the improving trend from the last financial year and this is mirrored in a further strengthening of the net cash position on the balance sheet. The Board believes that the Group is well-positioned for further growth.

a good riser today

Top risers and fallers between 12:00 and 13:00

PHOTO-ME INTL. 73.25P + 7.72%

A higher BREAKOUT after yesterday's rise

Not sure if anyone has picked up on this, from telegraph online yesterday. I wonder if this has spooked a few people? From reading it I dont think that PHTM have lost anything, more that they think they could have won the contract had it been tendered.

HomeFinanceNews by SectorTransportPhoto-Me taking DVLA to court over driving licence contract

Photographic group argues it should have been allowed to tender for 71m contract that was awarded to the Post Office.

By Sarah Limbrick
Published: 7:03AM GMT 01 Nov 2010

Comment

Photo-Me International
Photographic company Photo-Me International is headed for a High Court showdown with the Transport Secretary in a row over driving licences.

The DVLA has awarded a huge contract for photos on driving licences to the Post Office, but Photo-Me argues it should have had a chance to tender for the project.


Photo-Me only discovered that the 71.25m contract had been awarded to the Post Office after making inquiries under the Freedom of Information Act 2000.

The value of the contract is based on use by 75m customers over five years, at a cost of 9.50 per transaction, according to a High Court writ. The DVLA has had a long-running relationship with the Post Office for renewing car tax discs as well as driving licence checking services.

In May this year the DVLA, an executive agency of the Department for Transport, decided to vary the original contract, to include taking and emailing photographs and electronic signatures for driving licence applications, for another five years.

Photo-Me, which runs photo booths across the UK, contends that the contract was awarded without advertising, without carrying out any competitive tenders, and without seeking tenders from other operators.

This, says Photo-Me, was in breach of the Public Contracts Regulations 2006, and in breach of a duty to treat the company equally, in a non-discriminatory way, and to act transparently.

Court documents say Photo-Me became suspicious that DVLA and the Post Office might have entered into a contract for photocard services on April 21 and its fears were reinforced by a conversation with a Post Office representative a day later. It was confirmed by letters from DVLA following requests under the Freedom of Information Act 2000.

Photo-Me argues that it has lost profits it would have made if awarded the contract. The company has instructed James Levy of Lewis Silkin to act for it.