10 June
2024
ME Group International PLC
("ME Group" or the "Company" or "the
Group")
Trading Update
Record number of Revolution laundry machines
installed in H1; on track to deliver another year of record
performance
ME
Group International plc (LON: MEGP), the instant-service equipment
group, announces an update on the Group's trading for the six
months ended 30 April 2024 ("H1 2024").
Trading
Update1
Positive trading momentum continued
throughout H1 2024 compared with the six months ended 30 April 2023
("H1 2023"), with Group revenue up 4.6% (up 8.6% excluding FX
impact) and profit before tax up 10.3% (up 13.6%, excluding FX
impact). The Group remained focused on the continued growth of its
core photobooth and laundry operations.
Photobooth activity across all territories
performed as expected with Photo.ME revenue up 2.3% (up 7.4%
excluding FX impact) compared with H1 2023, driven by global demand
for official photo ID. The 3,548 photobooths previously acquired in
Japan have now been fully integrated into the Group's Japanese
operations and have started to benefit from network
optimisation.
Wash.ME
Revolution laundry operations is the fastest growing business area
with revenue up 17.4% (19.6% excluding FX impact) compared with H1
2023, as the Group delivered on its rollout of Revolution laundry
machines and built on its record performance. The number of
Revolution laundry machines in operation grew by 18% compared to H1
2023, with a record 420 Revolution machines installed in H1
2024. The Group continues to expand across its established
partnerships in high footfall locations, such as supermarkets and
petrol forecourts, and its installation pipeline indicates that it is
on track to deploy a record number of Revolution machines during
FY 2024.
1 Impact from foreign exchange rates ("FX")
during H1 2024, particularly the Japanese Yen which saw a 15%
decrease in value against Pound Sterling (average rate of exchange
used in H1 2024 was Yen/£ 187.64 vs H1 2023: 163.16), and a 2.2%
decrease in the Euro against Pound Sterling (average rate of
exchange used in H1 2024 was €/£ 1.138 vs H1 2023:
1.163).
Financial position
The
Group remains in a well-capitalised and strong financial position,
with high cash flow generation and long-term customer contracts
providing the Group with good predictability and visibility on
revenue streams. At 30 April 2024, the Group had a gross cash
position of £82.9 million (H1 2023: £113.1 million), and a net cash
position of £21.9 million (H1 2023: £24.4 million), excluding
investments in convertible bonds of £4.7 million (H1 2023: £4.7
million).
Outlook
Historically, the second half of the
financial year is seasonally the strongest for the Group in terms
of revenue and profits generated as well as the installation of
machines across key locations. As the Group capitalises on the
significant market opportunity for laundry and photobooth services,
the Board is confident in delivering record profitability for the
year, in line with market expectations.
The
Group will publish its interim results for the six months ended 30
April 2024 in mid-July 2024.
ENQUIRIES:
|
ME Group International
plc
|
+44 (0) 1372 453 399
|
|
Stéphane Gibon, CFO
|
ir@me-group.com
|
|
Vlad
Crasneanscki, Head of Investor Relations
|
|
|
|
|
|
Hudson Sandler
Wendy Baker / Nick Moore / Eloise Fleet
|
+44 (0) 20 7796 4133
me-group@hudsonsandler.com
|
NOTE TO EDITORS
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 18 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.
For
further information: www.me-group.com
