ME Group International plc (LON: MEGP), the instant-service equipment group, announces a post-year end trading update for the 12 months ended 31 October 2024.
Trading Update
Building on the positive trading momentum throughout H1 2024, the Group is pleased to report continued growth in H2 2024. As a result, the Board expects to report that FY 2024 will be another year of record profit and financial performance in line with the Board’s expectations.
Year-on-year the Group expects reported revenue to be not less than £308 million, up c.3% for FY 2024, and up c.7% to not less than £318 million excluding the previously announced FX impacts1. Adjusted EBITDA is expected to be not less than £112 million, up c.5% (up c.9% to not less than £116 million excluding FX impact1) and Profit Before Tax is expected to be not less than £73 million, up more than 10% (not less than £75 million excluding FX impact1).
Wash.ME Revolution laundry operations were the key growth driver in the year, with net revenue up c.19% (c.21% excluding FX impact1) compared with FY 2023. In total a record 1,111 machines (including 211 relocations) were installed across key regions including France and the UK, in line with the Group’s target of 80-90 laundry machine installations per month.
The Group’s photobooth operations were stable and performed as expected. This business remained highly cash-generative with Photo.ME revenue up c.0.4% (up c.4.4% excluding FX impact1). The Group continued to rollout its next-generation photobooths mainly in France. While the rate of deployment of these machines was slightly slower than expected, partly due to some technical issues, the Group continued to make progress with its rollout programme.
1 Excluding the Impact from foreign exchange rates (“FX impact”) during FY 2024, particularly the Japanese yen which saw a 12% decrease in value against pound sterling (average rate of exchange used in FY2024 was Yen/£ 191.71 vs FY 2023: 171.68), and a 2.1% decrease in the euro against pound sterling (average rate of exchange used in FY 2024 was €/£ 1.173 vs FY 2023: 1.149).
Financial Position
The Group remains highly cash-generative, well-capitalised, and in a strong financial position. As at 31 October 2024, the Group had a gross cash position of £86.1 million (FY 2023: £111.1 million). The Group made loan repayments of c.£27 million, invested c.£53 million in Capex, and paid £28 million in dividends to shareholders in 2024. The Group’s net cash position was £38.2 million, excluding investments and convertible bonds (FY 2023: £33.9 million), after delivering on its policy of returning cash to shareholders through dividend payments.
2024 Annual Results
ME Group International expects to publish its Annual Results for the financial year ended 31 October 2024 in mid-February 2025.
