10th Jun 2024 08:40
(Alliance News) - ME Group International PLC on Monday highlighted growth in both its older photobooth and newer laundry businesses, as it predicted "record" profitability, in line with market expectations.
The Epsom, England-based vending machine operator, formerly known as Photo-Me International, said positive trading momentum has continued throughout the first half of financial 2024 compared with a year prior.
"The board is confident in delivering record profitability for the year, in line with market expectations," ME Group said in a statement.
Revenue rose 4.6% in the six months to April 30, or 8.6% at constant currency rates, and pretax profit rose 10%, or 14% at constant currency.
ME Group said it 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%, or 7.4% excluding foreign exchange movements, from a year prior. This was driven by global demand for official photo ID.
Wash.ME Revolution laundry operations saw revenue grow 17%, or 20% at constant currency, from a year prior, as the rollout of Revolution laundry machines continued and built on its record performance.
ME Group said the number of Revolution laundry machines in operation grew by 18% compared to a year ago, with a record 420 Revolution machines installed in the financial first half.
The company said the installation pipeline indicates that it is on track to deploy a record number of Revolution machines during the full-year.
ME Group said it remains "well-capitalised" and in a "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 April 30, ME Group had a net cash position of GBP21.9 million compared to GBP24.4 million a year prior.
Shares in ME Group were down 2.7% to 165.77 pence in London on Monday.
By Jeremy Cutler, Alliance News reporter
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