ME Group confident after strong first half

10th Jun 2024 07:09

(Sharecast News) - ME Group International reported strong trading for the six months ended 30 April in an update on Monday, with a 4.6% increase in revenue, or 8.6% excluding foreign exchange, and a 10.3% rise in profit before tax, or 13.6% notwithstanding currency effects, compared to the same period last year.

The FTSE 250 company put the growth down to a robust performance in its core photobooth and laundry operations.

Its Photo.ME photobooth operation saw a revenue increase of 2.3%, or 7.4% excluding foreign exchange, fuelled by global demand for official photo IDs.

The integration of 3,548 photo booths in Japan was completed, enhancing the network's efficiency.

Wash.ME Revolution, its laundry operations, emerged as the fastest-growing segment with a 17.4% rise in revenue, or 19.6% excluding the impact of currency.

The group installed a record 420 Revolution laundry machines in the first half, marking an 18% increase year-on-year.

Expansion through partnerships with supermarkets and petrol forecourts was continuing to drive growth, positioning the group to achieve a record number of installations in the 2024 financial year.

Despite a 15% decrease in the yen and a 2.2% drop in the euro against sterling, the group said it remained financially robust.

As of 30 April, it held £82.9m in gross cash and £21.9m in net cash, excluding investments in convertible bonds.

Looking ahead, the group said it anticipated a stronger performance in the second half of the financial year, traditionally its most profitable period.

With ongoing market opportunities in laundry and photobooth services, the board said it was confident in achieving record profitability for the full year, aligning with market expectations.

ME Group said it would release its interim results in mid-July.

Reporting by Josh White for Sharecast.com.