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Photo-Me - Lowers manufacturing costs of laundry machines

March 2014

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:
  • 140.5p
Photo-Me has completed the move to outsource the manufacture of its laundry machines to a third-party in Hungary. Production is c. 25 machines per month but will rise to 80-100 machines by the end of 2014 and helps Photo-Me's target of an installed base of 2,000 by end 2015. This move will result in a significant reduction in manufacturing cost from Eu17,000 per unit to Eu10,000.   Cash at the half year to end October was £67.8m or 18p a share and as a measure of confidence Photo-Me has announced a special dividend of £7.5m or 2p a share. Finncap forecasts eps of 5.7p for the year to end April and 6.6p next. Hold the rest.   ...

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