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Photo-Me - Delivering Digilab orders to Kodak

January 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PHTM
Having issued a trading update at the AGM in November, the latest interims contained no  nasties or writedowns but instead re-echoedpositive prospects for both core divisions.  Pretaxprofit for the six months to 31 October fell from £8.2m to £1.3m onsales down from £106.5m to £95.6m mainly due to a delay in orders forthe Digilabs manufacturing division. Earnings were 0.22p. However,reflecting the high depreciation charge, cash flow held up well. Therewas a positive cash inflow from operating activities of £24m, whichafter capital expenditure of £7.9m on the photobooth side, resulted inreducing net debt by £14.6m to £36.9m.  Net interest payablereduced to £1.2m covered 2.1x.  Photo-Me ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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