Record profits, dividend raised, and a new £18 million buyback
ME Group International delivered another record year. For the 12 months to 31 October 2025, profit before tax rose to £78.2 million, up 6.5% (+7.1% at constant currency). Revenue edged up to £315.4 million, and margins improved again, with Group EBITDA at £120.4 million and an EBITDA margin of 38.2% (2024: 37.1%).
Shareholder returns stepped up. The total dividend is up 9.5% to 8.64p per share (58.0% of EPS), and the Board announced the launch of an £18 million share buyback. Details beyond the headline amount were not disclosed.
| Key number | FY 2025 | Change |
|---|---|---|
| Revenue | £315.4m | +2.4% (+3.0% cc) |
| EBITDA | £120.4m | +5.4% (+6.0% cc) |
| EBITDA margin | 38.2% | vs 37.1% |
| Profit before tax | £78.2m | +6.5% (+7.1% cc) |
| Diluted EPS | 14.91p | +4.5% |
| Cash from operations | £115.5m | +8.9% |
| Net cash | £26.5m | -10.2% |
| Total dividend | 8.64p | +9.5% |
| Share buyback | £18m | New programme |
Laundry is the growth engine: bigger estate, higher profits
The star of the show remains Wash.ME, the unattended laundry network. Total laundry revenue jumped 17.3% to £112.4 million, and laundry EBITDA rose 18.1% to £55.5 million, now 46.1% of Group EBITDA. ME Group installed a record 1,326 laundry machines in the year (1,172 new; 154 relocations) and, after removals, grew the estate by 1,145 units to 7,607 – up 17.7% year-on-year.
Vending revenue from Wash.ME increased 10.2% to £100.8 million despite a 5.8% dip in average revenue per machine (£14,329) due to unusually warm summer weather tempering demand. Capex into laundry rose to £31.8 million as the rollout accelerated, with 2026 laundry capex guided at £28.1 million thanks to lower unit costs, even as installations are expected to exceed 1,300.
Photobooths: regulatory bump, tech response underway
Photo.ME revenue slipped 4.0% to £166.2 million, mainly due to new German rules requiring passport photos to be taken in citizens’ offices or by certified photographers, plus a one-off printer supplier issue. Photo.ME EBITDA was £59.3 million, down 3.7%.
Management is countering with product upgrades. A new generation of photobooths and biometric kiosks – with liveness detection and anti-spoofing – will begin deployment in H2 2026, and all existing German booths will be upgraded to meet the regulations. The broader next-generation rollout continued in 2025, with 3,079 units installed to date and a target of 8,000 by the end of FY 2027. There was also a small bolt-on in Belgium, adding 116 photobooths.
Cash generation strong, reinvestment elevated, and returns rising
Operations generated £115.5 million of cash, up 8.9%. Gross cash closed at £56.5 million and net cash at £26.5 million, both lower year-on-year as the Group stepped up capital investment and repaid £21.5 million of debt. Capex increased to £65.6 million in 2025 and is guided to £57.0-£59.0 million for 2026.
The total dividend for FY 2025 is 8.64p per share (Interim 3.85p paid 28 November 2025; proposed Final 4.79p payable 29 May 2026, subject to approval). On top, the new £18 million buyback should provide an EPS tailwind and signals confidence in cash generation. The effective tax rate rose to 27.7% (from 26.3%) due to reassessments in France.
Geography: Europe leads, UK laundry surges, Asia profit rebounds
- Continental Europe: Revenue £215.5 million (+3.1%), with laundry vending up 6.9% to £68.5 million. Photobooths faced the German regulation and earlier printer disruption. Operating profit was £67.6 million (-0.7%).
- UK & Republic of Ireland: Revenue £50.1 million (+1.8%). Laundry vending up 18.4% to £32.2 million; photobooth vending down 21.8% following the end of a UK contract in FY 2024. Operating profit grew 4.6% to £13.6 million.
- Asia Pacific: Revenue £49.8 million (+0.2% reported; +2.2% constant currency). Operating profit rose 61.0% to £6.6 million in part due to prior-year impairments, with photobooth vending up 2.1%.
The total vending estate grew to 49,204 units (+2.0%), with laundry the clear contributor to growth across Europe and the UK & Ireland.
Innovation pipeline: Kee.ME and digital engagement
Beyond the core estate upgrades, ME Group is pushing new services. Kee.ME, an automated key duplication machine, moved from pilot to rollout in France in February 2026, with plans to deploy an additional 50 machines under the renewed SNCF contract. Wash.ME launched a mobile app (iOS and Android) with live machine availability, cycle tracking, notifications and a loyalty programme – a useful lever for repeat usage and promotions.
Corporate actions, suspension update, and outlook
The 2025 strategic review ended without an acceptable offer; the Board is pressing on with its core strategy of expanding laundry and modernising photobooths, while considering closely related acquisitions. The Company expects to publish its Annual Report today and then apply for restoration of the listing and trading of its shares. The reason for the suspension is not disclosed here.
For FY 2026, year-to-date trading is in line with expectations. Management acknowledges the German headwind will continue into FY 2026, with recovery expected thereafter as the new biometric-compliant machines roll out from H2 2026. Installation ambitions for more than 1,300 Wash.ME units in 2026 underline where growth will come from.
Josh’s take: what this means and why it matters
Why I’m positive
- Compounding cash engine: £115.5 million cash from operations and an improving margin give headroom to invest, pay rising dividends and now buy back shares.
- Laundry mix shift: Laundry is 35.6% of Group revenue and 46.1% of EBITDA, with rapid unit growth and attractive returns on capital. That tilts the Group towards faster-growing, higher-margin activity.
- Pragmatic response to regulation: A clear technical roadmap for Germany should stabilise photobooth earnings beyond FY 2026.
What I’m watching
- German photobooth recovery timing: Management expects continued impact in FY 2026; delivery on the H2 2026 upgrade plan is key.
- Average revenue per laundry machine: The weather-driven dip shows sensitivity. App adoption and loyalty could help lift utilisation per unit.
- Capital intensity: Capex remains hefty, though guided slightly lower for FY 2026. Execution must keep payback periods on track.
- Tax and FX: Higher effective tax (27.7%) and currency swings can nudge reported results. Constant-currency growth remains the better health check.
- Suspension restoration: The Company intends to restore trading post-publication of the Annual Report. Timing and any residual knock-on effects matter for sentiment.
Bottom line for investors
This is a solid set of results built on dependable cash generation and a clear growth lens on laundry. The dividend step-up plus a fresh £18 million buyback underline management’s confidence. Near-term, watch the German regulatory hangover and the pace of laundry installations. Medium-term, next-generation photobooths, the Wash.ME app, and Kee.ME add optionality. For a business of mostly small-ticket, needs-driven services in high-footfall sites, ME Group continues to prove its resilience – and it’s using that strength to both invest and return capital.
