Photo-Me International – 56.875p

7 December 2012 – interim results

An excellent set of figures has been released by the company, accompanied by bullish commentary on future prospects.  Although revenue fell by 7% to £107.4m, profit before tax rose from £17.0m to £20.0m.  This translated into earnings per share of 3.93p versus 3.23p a year earlier.  Net cash has risen to £70m, broadly a third of the current market capitalisation, and the company has more cash than it needs.  The interim dividend was lifted by 20% to 1.5p and additional returns to shareholders are being considered.  The shares still look inexpensive despite a strong rally since our recent tip.  BUY.

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