ME Group Expects Record Profitability and Laundry Growth in FY 2025

ME Group guides to record FY 2025 profits: the headline numbers that matter

ME Group International expects to deliver another year of record profitability for the 12 months to 31 October 2025. Revenue is guided to £311 million to £318 million, with profit before tax (PBT) of £76 million to £79 million. Management also flags strong cash conversion and a robust balance sheet.

On those ranges, the implied PBT margin sits around 23.9% to 25.4% – punchy for a capital-light operator that places and runs machines with long-term site contracts. The driver is very clear: laundry is doing the heavy lifting.

Metric	FY 2025 guidance / update
Total revenue	£311 million – £318 million
Profit before tax	£76 million – £79 million
Implied PBT margin	c.23.9% – 25.4%
Wash.ME revenue growth	Up c.10% reported (c.11% at constant currency)
Photo.ME revenue change	Down c.4% reported (c.3% at constant currency)
Net laundry machines installed in FY 2025	1,145 (a record, +27.2% vs FY 2024’s 900)
Next-generation photobooths in operation	3,079 by year-end
Footprint	Over 48,000 vending units across 16 countries
Results timing	Annual Results due mid-February 2026

Wash.ME is the growth engine: more machines, more EBITDA

Wash.ME is ME Group’s fastest growing business by both machine number and EBITDA (a cash profit proxy that excludes interest, tax, depreciation and amortisation). Revenue rose about 10% year on year, or roughly 11% once you strip out currency effects.

Despite unusually warm weather tempering laundry demand in some regions during H2 2025, the rollout kept its foot down. The Group installed 1,145 net laundry machines in the year – a record and a 27.2% uplift on FY 2024’s 900. That is classic ME Group: disciplined site selection, repeatable installs, and steady paybacks supported by long-term relationships with supermarkets, petrol forecourts and other high-footfall locations.

Why it matters: more machines mean more recurring vends and higher EBITDA, and the model scales well. With strong cash conversion highlighted, the flywheel of cash reinvested into further rollouts looks intact.

Photo.ME: resilient core with regulatory headwinds in Germany

Photo.ME revenue declined approximately 4% year on year (around 3% at constant currency). Trading was largely robust in key markets like France and there was growth in developing markets such as Belgium and the Netherlands. Two known drags worked through the numbers: the previously communicated end of a UK contract in FY 2024 and a printer supplier issue in H1 2025, which is now resolved.

Germany was the notable pressure point in H2 2025, where regulatory changes now require passport photos to be taken in citizens’ offices or by certified photographers. That is a structural headwind in that market. Offsetting this, the rollout of next-generation booths continued, reaching 3,079 machines by the year end. Upgrading the estate can help defend average spend and maintain service relevance, particularly where biometric compliance is at a premium.

The takeaway: the photo estate remains resilient, but some geographies can move against ME Group when rules change. Diversification across 16 countries helps spread that risk.

Currency moves: constant currency shows the underlying trend

ME Group also reports movements on a constant currency basis. This is simply a way of showing growth as if exchange rates had not changed, to isolate the operational performance from FX noise.

In FY 2025, the Japanese yen weakened by 1.9% against the pound on average (Yen/£ 195.35 vs 191.71 in FY 2024), and the euro dipped by 0.05% (€/£ 1.178 vs 1.173). Adjusting for these, laundry growth improves from c.10% to c.11%, and Photo.ME’s decline softens from c.4% to c.3%. Small differences, but directionally helpful.

Cash conversion, balance sheet and the ongoing offer period

Management says cash conversion and the balance sheet remained strong, though no specific figures are disclosed. Cash conversion refers to how effectively accounting profits turn into cash in the bank – vital for a roll-out model that self-funds growth.

On 18 June 2025, the company entered an offer period and confirmed it was exploring strategic options, including seeking potential offerors for the business. That process is ongoing, with an update promised in due course. No terms, valuations or timelines are disclosed.

Why it matters: an active process can act as a catalyst for unlocking value, but it also introduces uncertainty on the outcome and timing. For now, the operating performance suggests the company is negotiating from a position of strength.

What to watch into the mid‑February results

• Final revenue and PBT within guidance – will they land toward the top or bottom of the ranges, and where does the PBT margin settle within c.24% to 25%?
• Segment detail – revenue, margins and EBITDA by division are not disclosed here. The Annual Results should show how much of the profit engine is coming from Wash.ME versus Photo.ME.
• Laundry rollout cadence – FY 2025’s 1,145 net installs set a new watermark. Any FY 2026 deployment targets would be useful for modelling.
• Germany photobooth impact – clarity on volume and revenue exposure to the German regulatory change, and any mitigation plans.
• Weather sensitivity – H2 warmth trimmed laundry demand in some regions. Any read-across to seasonality and pricing would be helpful.
• Capital allocation – cash conversion is said to be strong, but there are no details on dividends, buybacks or capex plans in this update.
• Offer period update – whether strategic options lead to a formal offer, an alternative transaction, or the status quo.

Pros and cons: the balanced view

Reasons to feel positive

• Record profitability expected with healthy PBT margins.
• Wash.ME is delivering double-digit revenue growth and record machine installations.
• Cash conversion and balance sheet strength support continued self-funded expansion.
• Diverse footprint across 16 countries and over 48,000 units provides resilience.

Things to keep an eye on

• Photo.ME headwinds in Germany are regulatory, not cyclical, and may persist.
• Weather can influence laundry volumes at the margin.
• The offer period adds uncertainty around outcomes and timelines.
• Some key metrics – detailed cash figures, capex and segment margins – are not disclosed in this trading update.

Josh’s take: laundry-led growth keeps the story on track

This is a solid end-of-year update. Laundry continues to do exactly what investors want it to do – grow machines, grow vends, grow EBITDA. Photobooths are more mixed, but the estate is being upgraded and the business remains robust in core markets, despite Germany’s change in rules.

With revenue guided to £311 million to £318 million and PBT of £76 million to £79 million, ME Group is lining up another record. The model’s strength is its repeatability and cash generation, and both are on show here. I will be watching for more segment detail, German mitigations, and any developments on the strategic review when the full results land in mid-February 2026.