2017 dubbed year of progress by Photo-Me International reflected in record profits and a fourth consecutive year of double-digit earnings growth
CEO said group will remain focussed on driving profitability and continue investing in new products to extend services
The Share Centre recommends Photo-Me International as a 'buy' for higher risk investors with a balanced portfolio
As Photo-Me International reports its full year results Graham Spooner, investment research analyst at The Share Centre, explains what it could mean for investors:
"This morning, Photo-Me International posted record full year profits of £48m, up 19.7%. The good news continued as the group highlighted a fourth consecutive year of double-digit earnings growth, with revenue up by 16.7% to £214.7m. Moreover, and the dividend rose by 20% to 7.03 pence. Investors should appreciate that the photo booth operator noted performance over the period was helped by the weak pound.
"In the update today, the company said expansion of its laundry business has continued to make progress and it is on target to implement 6,000 units by 2020 across a range of European countries. Furthermore, interested investors may want to note that its continued investment in innovation for future growth means it is able to develop its identification business and bring out the next generation of more modern looking photo booths.
"The share price is up by around 30% over the past 12 months, although down 5% in early trading perhaps reflecting on uncertainties over currencies and the UK. Photo-Me International is a cash-generative and increasingly innovative business which has concentrated on expanding into new geographic markets and new products of late, including passport applications, a trial of carwashes and smaller laundry machines.
"We continue to recommend Photo-Me International as a 'buy' for higher risk investors with a balanced portfolio."