- Record trading momentum continues
- Laundry division revenue up 15.7%
- Full-year profit £76m-£80m
ME Group International (MEGP) said record trading momentum had continued into the first half to the end of April as the instant service equipment group posted a 17% increase in pre-tax profit, driven by strong growth in the laundry business.
The shares kicked-up around 3% to 220.5p, taking gains over the last year to 23% compared with a 1% advance in the midcap FTSE 250 index.
Noting the group’s historical second-half performance weighting, the board expressed confidence in delivering full-year pre-tax profit in the £76 million to £80 million range, equivalent to 3.5% to 9% yearly growth.
CLEANING UP
Group reported revenue was up around 2% but adjusted for a business sold in May 2024, first-half revenue was up 3.5% year-on-year, equivalent to an increase of 6% in constant currencies.
The group’s expanding laundry operations in the Wash.ME division continued to benefit from ongoing demand across all geographies and delivered a strong 15.7% increase in revenue at constant currencies (13.3% reported).
New machine installations continued ‘at pace’ with a net 550 installed in the first half, putting the group on target to install 1,200 net Revolution laundry machines in the financial year to the end of October.
One slight wrinkle was a 3.3% fall in Photobooth revenue caused by a technical issue with new printers which has been resolved, with the company receiving compensation from the supplier.
The group acquired a Photo ID competitor in Belgium in March, adding 116 Photobooths to the portfolio, financed out of existing cash. The company remains on track to install a targeted 3,200 of next generation booths in 2025 to upgrade existing machines.
ME Group saw record profitability in the first half driven by the laundry operations and ended the period with net cash up 69% to £36.2 million compared with £21.7 million at the end of the first half of 2024.
