15th Jul 2024 18:00
(Alliance News) - ME Group International PLC on Monday reported stronger half-year profit and lifted its dividend, hailing progress in its photobooth and laundry operations.
The Epsom, England-based vending machine operator, formerly known as Photo-Me International, said pretax profit jumped 10% to GBP30.0 million in the six months ended April 30 from GBP27.2 million a year prior.
Revenue climbed 4.6% to GBP150.4 million from GBP143.8 million.
ME Group declared an interim dividend of 3.45p, up 16% from 2.97p a year ago.
Looking ahead, the company said the second financial half has started strongly as it noted continued positive trading momentum across its operations.
ME Group anticipates "another year of record profitability" in the current financial year 2024, in line with current market expectations.
Chief Executive Officer Serge Crasnianski said: "The group continues to focus on profitability, returns and cash generation, with these metrics being the key performance indicators for the group. The group is on track to deliver another record year across these financial metrics, including the number of machines deployed."
He added: "Through our continued focus on research & development and technological innovation, the group remains focused on prudently exploring new and exciting opportunities within the automated self-service instant machine category to further diversify our portfolio, including the planned launch of new machines offering a broader range of services for our consumers."
Vending revenue at the Photo.ME division rose 2.4% to GBP85.9 million from GBP83.9 million. Vending revenue excludes revenue from the sale of equipment, consumables, spare parts and services.
Berenberg analysts commented: "With over half the photobooth estate located in Japan, the division was affected by a headwind from the Japanese yen depreciating by 15% against the UK pound. While photobooth demand is seasonally lower in Q1, ME Group noted that demand picked up again in Q2 and that this trend has continued into Q3."
Wash.ME revenue from laundry operations increased 17% to GBP44.1 million from GBP37.8 million.
Berenberg added: "The number of Revolution laundry units in operation increased by 18% year-on-year to 5,957. The expansion of this division remains central to our investment case and, encouragingly, monthly roll-out rates are targeted at [around] 80-90 for H2. We estimate that ME Group will roll out [aeround] 950 Revolutions in FY24 and that Wash.ME will reach GBP97 million in sales (up by 19%). We believe the division has a long runway of growth with plenty of scope for estate expansion across key European geographies."
By Eric Cunha, Alliance News news editor
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