Me Group delivers 'record' H1 profitability

(Sharecast News) - Instant-service equipment business Me Group told investors on Monday that it had delivered record profitability in the six months ended 30 April and said it was on track to deliver FY25 profits in line with expectations for another record year. Me Group said total pre-tax profits were up approximately 14%, while group revenues were roughly 2% firmer, driven by a "strong" performance in its Revolution laundry division. Excluding the H124 contribution from SEMPA SAS, which was sold in May 2024, interim revenues grew approximately 3.5% year-on-year.

Laundry operations saw revenues grow 13.3%, reflecting ongoing demand across all of its geographies, while photobooth revenue was down approximately 3.3%, primarily due to a technical issue with new printers, which has now been resolved but caused an estimated 2% drop in photobooth revenue in H125.

Me Group stated it has "predictable revenue streams", was "highly cash generative" and has a "strong" balance sheet. At 30 April, net cash was up 69.1% to £36.2m.

"We are pleased to report further progress and profit growth in H125, despite a backdrop of challenging global markets. Whilst the photobooth revenue performance was slightly lower than expected due to the supplier issue referenced above, laundry operations continue to deliver significant growth. Historically, the group's performance is second-half weighted, and the board continues to anticipate FY25 profit before tax will be between £76.0m and £80.0m.

As of 0735 BST, Me Group shares were untraded at 216.62p.

Reporting by Iain Gilbert at Sharecast.com