1st Jun 2023 09:40
(Alliance News) - ME Group International PLC on Thursday said it has increased its full-year outlook following an unexpectedly strong performance over the last six months, with profit and revenue jumping in part due to increased photo booth use.
ME is an Epsom, England-based instant-service equipment firm, formerly known as Photo-Me International PLC.
The company said that in the half year ended April 30, its pretax profit was up by over 35% compared with the same period one year prior. Group revenue was up by more than 24%. ME said the increases were due to strong performance in all key business areas and all 19 of its operating markets.
Shares in ME were up 8.4% at 149.11 pence in London on Thursday. The stock has more than doubled in value over the past year.
In particular, revenue for its Photo.ME business increased by around 25% year on year as increased demand for photo ID boosted photo booth use across all territories. This was especially pronounced in Europe and Asia. ME said its recent research and development efforts have mainly prioritised improving its photo booths' printing and photography capabilities.
ME said its Wash.ME laundry business also performed strongly with revenue increasing by around 36%, and remains a key focus of investment. In its Print.ME digital printing business, which mainly operates in France, revenue increased by about 11%, while its Feed.ME vending equipment business "remains a core strategic focus".
ME is currently finalising production of a new app to allow Wash.ME to better analyse customers, increase their loyalty and improve performance, and said the roll-out will start this month. Meanwhile, it said the ongoing rollout of new Print.ME kiosks "should further boost performance".
ME said that due to the strong trading performance, it has raised its outlook for the current financial year. The company now expects revenue between GBP300 million and GBP320 million, compared to previous guidance of revenue of between GBP280 million and GBP300 million. Pretax profit is expected to be between GBP64 million and GBP67 million, up from a previous range of GBP61 million to GBP65 million.
By Emma Curzon, Alliance News reporter
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