ME Group International H1 2025 PBT up 13% to £34m, dividend raised 11.6%

ME Group International plc (LON:MEGP), the instant-service equipment group, has announced its results for the six months ended 30 April 2025.

KEY FINANCIALS

¹   EBITDA is profit before depreciation, amortisation, non-operating income/expense and finance cost and income.

²   Net cash excludes lease liabilities of £9.7 million. Refer to note 12 for the reconciliation of net cash to cash and cash equivalents per the financial statements

³ Constant currency is H1 2025 results translated using the prior year foreign exchange rates. This excludes the impact from foreign exchange rate movements (“FX impact”) over the past 12 months, particularly the Japanese yen which saw a 2.7% decrease in value against pound sterling (average rate of exchange used in H1 2025 was yen/£ 192.67 vs H1 2024 yen/£187.60), and a 2.7% decrease in the euro against pound sterling (average rate of exchange used in H1 2025 was €/£1.194 vs H1 2024 1.163)

⁴ Six months ended 30 April 2024.

H1 HIGHLIGHTS

·      Strong first-half performance, delivering revenue up 2.3% (up 4.7% at constant currency³), EBITDA up 3.9% (up 6.4% at constant currency³), and profit before tax growth of 13.3% (up 16.3% at constant currency³).

·      Performance driven by total laundry operations which saw revenue increase by 17.7% to £51.9  million, with Revolution vending revenue up 13.3% to £46.7 million (up 15.8% at constant currency).

·      The Group’s EBITDA margin increased by 0.5 ppts to 34.6% and profit before tax margin increased by 2.2 ppts to 22.1%, reflecting the strong focus on disciplined cost control and operational leverage of the Group.

·      Further strategic progress made on growth strategy, with net 523 Revolution units deployed in H1 2025 and the Group remains on track to install a total of 1,200 net Revolution units and 3,200 next-generation photobooths in 2025.

·      Cash generated from operations grew by 14.1% to £47.6 million, further enhancing the Group’s strong balance sheet, with gross cash of £74.9 million and net cash² of £36.2 million at the period end. The Group made loan repayments totalling £11.0 million in H1 2025.

·      Diluted earnings per ordinary share up 12.8% to 6.74 pence, reflecting the Group’s commitment to enhance returns for all shareholders.

·      Interim dividend up 11.6% to 3.85 pence per Ordinary Share (H1 2024: 3.45 pence), which will return £14.5 million to shareholders. The Group remains committed to paying more than 55% of annual profits after tax to shareholders.

OUTLOOK

·      H1 2025 saw further strategic progress and profit growth in the period, despite a backdrop of broader challenging global markets.

·      The Group remains focused on delivering in line with its long-term strategy to grow its core laundry and photobooths activities, leveraging its key strengths and significant competitive advantage.

·      ME Group remains on track to deliver FY 2025 profit performance in line with expectations, with another year of record profitability. The Board continues to anticipate FY 2025 profit before tax will be between £76 million and £80 million¹.

Serge Crasnianski, ME Group International Chief Executive Officer (CEO) & Deputy Chairman, commented:

“We are pleased to report record trading momentum in the first half, driven by a strong performance from our rapidly growing laundry operations.

“The Group’s predictable revenue streams and highly cash-generative characteristics continue to support our strong balance sheet. We have a clear growth strategy and competitive advantage. We leverage our R&D and market expertise, alongside our disciplined financial approach, to grow our photobooth and laundry activities and maximise return on capital, targeting a rapid return on investment.

“The Board’s expectations for FY 2025 are unchanged, and the Group remains well-positioned for long-term success”