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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Photo-Me - Surprise profit warning

February 2006

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:
  • 87p
The shares fell sharply after Photo-Me issued a profit warning as part of its interim results for the six months ending 31 October. Revenue fell 6.1% to £108.5m, while operating profit, before a £3.3m exceptional gain from an insurance payout related to a fire, fell 10% to £16.5m. For the first time, Photo-Me has released an individual break-down of divisional profit and the vending division (coin operated photo booths and digital media kiosks) made good progress, increasing profit before central overheads by 38% to £16.2m, from sales up 5.2% to £79.5m. Growth came through a combination of new digital media kiosks in France, new kiddie rides in the UK and cost reductions in Japan, following a one-thi ...

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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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