Loading…
Record H1 profit up 13.3%, dividend hiked 11.6%. Laundry drives ME Group growth & strong cash flow despite photobooth printer glitch.
This article covers information on ME Group International PLC.
LON:MEGPRight, let’s dive into ME Group International’s (MEGP) latest interim results. The headline? A record-breaking first half for profitability paired with a chunky dividend hike. This isn’t just steady as she goes; it’s a clear signal of momentum despite the usual global economic headwinds. Serge Crasnianski and the team are delivering on their strategy, and the numbers back it up.
Cutting through the RNS detail, here’s the core financial performance for the six months ended 30 April 2025 (H1 2025) compared to H1 2024:
The constant currency figures tell the real underlying growth story, stripping out the negative FX impact (mainly a weaker Yen and Euro vs Sterling). Margins expanding? That’s operational efficiency and scale in action.
Forget the photobooths for a moment (though they’re still crucial). The undisputed star of this show is the Wash.ME Revolution laundry business.
This isn’t just growth; it’s hypergrowth. Laundry now contributes 33.5% of Group vending revenue and a whopping 47.7% of Group EBITDA – a dramatic shift from just 18.3% and 23.4% respectively back in 2019. The strategy of rapid, targeted deployment in high-footfall locations (supermarkets, petrol forecourts etc.) is paying serious dividends. Capex here was £14.4m (20% of total), showing continued heavy investment for future returns.
While average revenue per machine dipped slightly (-2.7% reported, -0.6% CC), this is largely due to a smart move: adding *extra* machines at 232 high-demand sites to manage peak loads (especially weekends). This increases total revenue but spreads it across more machines. Capacity meeting demand is a good problem to have.
Related
Polar Capital Technology Trust sees 102% NAV growth in FY2026, beating its benchmark by 47 points thanks to AI and semiconductor exposure.
JoshuaJuly 10, 2026
Last updated
Category
InvestingViews
27 viewsLikes
No ratings yet
Last updated:
The photobooth division faced a temporary setback:
Photobooths remain the largest segment by machine count (30,557 units) and revenue contribution (53.8%), but its relative importance is evolving as laundry scales.
ME Group’s model is inherently cash-generative, and H1 2025 demonstrated this powerfully:
The Board’s message is one of steady confidence:
ME Group’s H1 results are undeniably robust. They’ve navigated FX headwinds and a temporary photobooth hiccup to deliver record profitability, driven by the exceptional growth and margins of the Revolution laundry business. This isn’t a one-off; it’s the result of a clear, executed strategy transforming the business mix.
The cash generation is impressive, funding growth, debt reduction, and significantly increased shareholder returns (that juicy 11.6% dividend hike speaks volumes). The reiterated guidance underscores confidence in the second half and full year.
While the strategic review announcement adds a speculative element, the fundamental story here is one of a company executing well in its core markets, successfully pivoting its growth engine towards laundry, and rewarding shareholders along the way. For investors seeking profitable growth, strong cash generation, and a solid yield, ME Group’s latest numbers make a compelling case. One to watch closely, especially with that strategic option card now on the table.
Key Dates for the Diary:
Impax Q3 AUM rises to £23.3bn despite £1.7bn net outflows, driven by market gains and strong investment performance.
JoshuaJuly 10, 2026
MJ Gleeson FY2026 trading update: steady profits, mixed home sales with operational restructuring improving outlook.
JoshuaJuly 10, 2026
No comments yet - start the conversation.