Leisure group Photo-Me sells and operates coin-operated automatic photo booths, as well as offering other products internationally.

“With operations mainly in France, Germany, Japan and the UK, Photo-Me is a cash-generative business which has concentrated on cost-saving measures and new products. Its latest moves include one into carwashes, whilst also expanding geographically into Ireland and Portugal.

“Investors should note that in December’s interim results report, the dividend was raised by 30 per cent. An update in February also reported good news – a 12 per cent rise in third quarter profit. The group’s net cash position continues to improve, leading to the group’s intention to increase the dividend by 30 per cent in the current financial year. There is also potential for further special dividends, as demonstrated last year.

“Demand for its products has continued to improve in France and Japan, whilst manufacturing costs have recently fallen. We recommend Photo-Me as a higher risk ‘buy’ for investors seeking a balanced portfolio.”