finnCap Research Company Notes - 28 October 2019

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Sector: Support Services

Photo-Me (PHTM) : Corp

Growth in Europe and Asia

Key data

Share price (p) 89.3

Target price (p) 150.0

Market cap (£m) 335.9

Enterprise value (£m) 325.0

Photo-Me has confirmed that trading in the first five months of its financial year (to September) has been in line with expectations. Trading in the UK has remained challenging but continental Europe and Asia have seen continued growth. Expansion of Laundry operations remains a key growth driver (sales +23%) and the self-service juice market presents a significant growth opportunity. Identification sales were down -3.8% due to the decrease In the UK photobooth market.

Guy Hewett

020 7220 0549

ghewett@finncap.com

Sector: Technology & Telecoms

Wameja (WJA) : Corp

HomeSend draws on facility for second time

Key data

Share price (p) 7.3

Target price (p) 20.0

Market cap (£m) 89.0

Enterprise value (£m) 79.5

Wameja has met the second drawdown request from their HomeSend JV with Mastercard. The August H1 update revealed HS requested a further €5m on top of the original €2m in June; a 70% increase to the funds currently utilised by HS for funding the pre-payment timing gaps in its settlement model. Wameja has now supplied €1.8m as its share of this second tranche of liquidity funding. The funds will be used to support an anticipated rise in gross value flows following several implementations, which went live on the HS global payment hub during the last quarter. At the same time, Wameja confirms that the loan facility has been shortened by nine months, with no obligation to extend the term beyond March 2020. Third-party funding alternatives continue to be evaluated as the scale of the platform will grow beyond the funding resources available; by the progress this year, we don’t expect that to take long.

Lorne Daniel

020 7220 0545

ldaniel@finncap.com

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