Shares digital

The latest profits warning from Photo-Me International (PHTM), the fourth in just over a year, underlines the basic problems facing the company.

Last year the group failed to sell its vending division, while the most recent warning is down to a decline in sales. The share buyback programme is being aborted and the company will also review its dividend policy in the summer when the new chief executive Thierry Barel unveils his strategy.

It is a racing certainty that it will at least be cut, if not passed altogether, signalling more misery for shareholders. Meanwhile Dan David, a former President, and Phillipe Wahl, a former director, have accumulated 10.2% and 18.3% stakes. However, it is unlikely that they would want to bid given the group’s difficulties.

Shares says: The shares have been a miserable market and there are no signs of improvement.

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by: John Marshall