Photo-Me International plc
Visit Photo-Me International plc
Description
Photo-Me operates around 50,000 instant-service vending machines, located in high-footfall retail sites (shopping centres, malls, sports venues and transport hubs). The group has a focus on three main areas – identification (photo booths), laundry and digital print kiosks. Innovation is rapid but tightly controlled and the group has a clear strategy for both product evolution and geographic expansion. Headquartered in the UK, revenues are currently concentrated in France, the UK and other Mainland Europe locations, with Asia Pacific (especially Japan) a major source of focus for expansion.
Our view
Photo-Me offers an attractive combination of three major skillsets: applying technology and development expertise to instant-service vending, building strong and commercial relationships with high-footfall site owners and efficient management of engineering and site-support logistics. This combination has driven good shareholder returns in the past and there is ample opportunity for multinational growth.
Financial Summary
Year end: April (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Revenue | 184.0 | 214.6 | 229.6 | 238.8 |
| Adj EBITDA | 56.7 | 69.2 | 70.5 | 71.0 |
| Fully Adj PBT | 40.0 | 48.0 | 50.2 | 44.1 |
| Fully Adj EPS (p) | 7.7 | 9.3 | 9.6 | 8.5 |
Profit & Loss
Year end: April (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Revenue | 184.0 | 214.6 | 229.6 | 238.8 |
| Adj EBITDA | 56.7 | 69.2 | 70.5 | 71.0 |
| Adj EBIT | 40.0 | 49.8 | 48.6 | 46.2 |
| Reported PBT | 40.0 | 48.0 | 50.2 | 44.1 |
| Fully Adj PBT | 40.0 | 48.0 | 50.2 | 44.1 |
| NOPAT | 54.6 | 47.2 | 28.5 | 25.1 |
| Reported EPS (p) | 7.7 | 9.3 | 9.6 | 8.5 |
| Fully Adj EPS (p) | 7.7 | 9.3 | 9.6 | 8.5 |
| Dividend per share (p) | 5.9 | 7.0 | 8.4 | 8.9 |
Cash Flow & Balance Sheet
Year end: April (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Operating cash flow | 37.6 | 61.2 | 66.5 | 71.2 |
| Free Cash flow | 37.6 | 5.7 | 14.1 | 30.6 |
| FCF per share (p) | 10.1 | 1.5 | 3.7 | 8.0 |
| Acquisitions | 0.0 | 0.0 | 0.0 | (4.2) |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 0.0 | 0.8 | 0.8 | 0.8 |
| Net cash flow | 19.4 | (25.5) | (11.0) | (6.7) |
| Overdrafts / borrowings | (10.8) | (10.7) | (8.9) | (7.2) |
| Cash & equivalents | 71.0 | 47.5 | 34.8 | 26.3 |
| Net (Debt)/Cash | 60.2 | 36.8 | 25.8 | 19.1 |
Nav & Returns
Year end: April (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Net asset value | 122.8 | 129.3 | 133.4 | 132.0 |
| NAV/share (p) | 32.4 | 34.1 | 35.2 | 34.8 |
| Net Tangible Asset Value | 102.4 | 104.0 | 106.1 | 103.5 |
| NTAV/share (p) | 27.0 | 27.4 | 28.0 | 27.3 |
| Average equity | 113.6 | 126.0 | 131.3 | 132.7 |
| Post-tax ROE (%) | 25.6% | 27.9% | 28.0% | 24.3% |
Metrics
Year end: April (£m unless shown)
| 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|
| Revenue growth | n.a | 16.6% | 7.0% | 4.0% |
| Adj EBITDA growth | n.a. | 22.1% | 1.9% | 0.7% |
| Adj EBIT growth | n.a. | 24.4% | (2.4%) | (4.9%) |
| Adj PBT growth | n.a. | 19.9% | 4.6% | (12.3%) |
| Adj EPS growth | n.a. | 19.5% | 4.1% | (12.3%) |
| Dividend growth | n.a. | 20.0% | 20.0% | 5.0% |
| Adj EBIT margins | 21.8% | 21.8% | 19.8% | 17.9% |