# ME Group International report revenue up 24.7% and profit before tax up 36.7%

- Link: https://www.directorstalkinterviews.com/me-group-international-report-revenue-up-24.7-and-profit-before-tax-up-36.7/4121123733
- Published: 2023-07-12T07:16:39+01:00
- Author: Ethan Davis

**ME Group International plc** (LON:MEGP), the instant-service equipment group, 
has announced its results for the six months ended 30 April 2023.

| **KEY FINANCIALS** | **Reported** | ** ** | 
|  | **Six months ended
30 April 2023
 | Six months ended
30 April 2022
 | Change | 
| Revenue | £143.8m | £115.3m | +24.7% | 
| EBITDA^(1) | £46.1m | £40.2m | +14.7% | 
| Profit before tax | £27.2m | £19.9m | +36.7% | 
| Profit after tax | £20.4m | £16.4m | +24.4% | 
| Cash generated from operations | £36.8m | £29.8m | +23.5% | 
| Gross cash^(2) | £113.1m | £95.8m | +18.1% | 
| Net cash^(2) | £24.4m | £42.2m | -42.1% | 
| Earnings per share (diluted) | 5.34p | 4.35p | +22.8% | 
| Dividends: |  |  |  | 
|  – Interim Dividend per ordinary share | 2.97p | 2.60p |  | 
|  – Special Dividend per ordinary share | – | 6.50p |  | 
| Total dividend per ordinary share | 2.97p | 9.10p | -67.4% |

^(1  ) EBITDA is profit before depreciation, amortisation, other net gains and finance
cost and income.

^(2  ) Refer to note 9 for the reconciliation of net cash to cash and cash equivalents
per the financial statements. The comparative figures for net cash, and gross cash,
have been restated by £(1) million to reflect a change in accounting policy which
reclassified certain restricted deposits from cash to debtors. This ensures comparability
with the current period balances.

**H1 HIGHLIGHTS**

·    Strong financial performance, with revenue up 24.7% and profit before tax up
36.7%, driven by progress across all of the Group’s key business areas – photobooth,
laundry and digital printing services – and in all of its 19 operating markets.

·   Photo.ME revenue was up 25.4% to £83.9 million, driven by demand for photo ID
and increased activity across all territories, particularly Continental Europe and
Asia Pacific.

·    Wash.ME revenue was up 37.0% to £37.8 million which was reflected in the growth
of the Group’s laundry estate – a key focus of investment. Revolution laundry units
in operation grew 15.8% and represented 11.5% of total group vending estate – the
Group installed new machines at a rate of 50-60 per month in the Period.

·      Print.ME revenue up 11.5% at 5.8 million with 183 new kiosks were deployed
in France during the Period.

·    Food.ME revenue contribution was 4.5% of Group revenue, up 106.5% to £6.4m (
H1 2022: £3.1 million).

**OUTLOOK**

·     Continued focus on the Group’s five-year growth strategy to support the development
of each principal business area, including M&A activity where the Group has an active
pipeline of opportunities, to drive sustainable revenue and profit performance. 

·      Rollout of next-generation multi-service photobooths is underway and the 
Group is focused on deploying these across its key territories. The Group aims to
install between 1,000 and 1,500 machines in France by the end of October 2023.  

·    Sustained pace of rollout for Revolution laundry units at between 50-60 per
month, as the Group continues to expand its laundry machine estate and deploy new
laundry formats, including compact and energy-saving models.  

·    Continued focus on developing Feed.ME business area to accelerate deployment
of the Group’s new pizza vending machine in France as well as the extension of fresh
fruit juice vending equipment presence in Japan.  

·     Return to the [FTSE 250](https://www.directorstalkinterviews.com/news/ftse-250)
index post-period end was a momentous milestone for the Company, supported by the
delivery of its diversification growth strategy.

·      As previously reported, the Group has continued to see positive trading momentum
across its operations. Consequently, the Board expects that results for FY 2023 
will be in line with recently revised market expectations^(*), subject to any changes
to the broader macroeconomic environment.

_*Current market expectations are revenue between £300 million and £320 million,
EBITDA between £100 million and £110 million and profit before tax between £64 million
and £67 million_

> **Serge Crasnianski, ME Group International CEO & Deputy Chairman, commented:**
> “The Group has achieved an extremely strong first-half performance across its 
> key business areas and in all of its 19 operating markets, which delivered significant
> growth in revenue, EBITDA and profit before tax in the Period. As a result, the
> Board increased its outlook for the current financial year FY 2023 in early June.
> “ME Group is a high-potential business that continues to offer growth opportunities
> in existing and new geographic markets. We have a dominant market position in 
> most of the markets in which we operate and our long-term customer contracts provide
> us with good predictability and visibility on revenue streams.  Our operations
> are highly cash-generative and these cash flows are used to fund growth through
> product innovation and expansion, and allow us to deliver value to shareholders
> through growth and dividends.  Reflecting our solid business model and continued
> strategic progress, ME Group has re-entered the FTSE 250 Index.
> “Looking ahead, the Board remains confident in the Group’s growth strategy and
> strong financial position which provides us with a platform to fund future growth
> opportunities.”

ME Group International plc (LSE: MEGP) operates, sells and services a wide range
of instant-service vending equipment, primarily aimed at the consumer market.

The Group operates vending units across 19 countries and its technological innovation
is focused on four principal areas:

·      Photo.ME    – Photobooths and integrated biometric identification solutions

·      Wash.ME     – Unattended laundry services and launderettes

·      Print.ME      – High-quality digital printing kiosks

·      Feed.ME     – Vending equipment for the food service market

In addition, the Group operates other vending equipment such as children’s rides,
amusement machines, and business service equipment.

Whilst the Group both sells and services this equipment, the majority of units are
owned, operated and maintained by the Group. The Group pays the site owner a commission
based on turnover, which varies depending on the country, location and the type 
of machine.

The Group has built long-term relationships with major site owners and its equipment
is generally sited in prime locations in areas of high footfall such as supermarkets,
shopping malls (indoors and outdoors), transport hubs, and administration buildings(
City Halls, Police etc.). Equipment is maintained and serviced by an established
network of more than 650 field engineers.

In August 2022 the Company changed its listed entity name to ME Group International
plc (previously Photo-Me International plc) to better reflect the Group’s diversification
focus and business strategy.

The Company’s shares have been listed on the London Stock Exchange since 1962.

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