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Photo-Me - Raises full year dividend by 25%

July 2012

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
  • Price:
  • 37.5p
Anyone who thinks Photo-Me's shares are marooned should think again. During the past three years, the company has moved from net debt of £23.5m at 30 April 2009 to net cash of £51.8m - implying a £75.3m shift. Last year's 27% increase in cash came after spending £7.5m on dividends and also £17.5m on additions to its vending estate. Therefore whilst it is frustrating to see the shares unloved, we think that Photo-Me has made the best of difficult times. For the year to 30 April, pretax profit was up by 12% to £20.1m and eps up 6% to 4p.  The core photobooths business remains healthy and well, producing record margins. The operating profit climbed 19% to £25.1m on flat sales of & ...

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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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