ME Group reiterates outlook on strong first half

(Sharecast News) - ME Group International reaffirmed its full-year outlook on Tuesday, following a rise in both revenues and earnings. Interim revenues at the former Photo-Me International rose 2.3% in the six months to 30 April rose to £153.8m, or by 4.7% on a constant currency basis.

Pre-tax profits increased to £34m from £30m.

The group, which installs and operates automated vending equipment, including photobooths, washing machines and children's rides, said the interim performance had been driven by a strong showing in laundry. Revenues in the division jumped 17.7% at £51.9m.

As a result, ME - which has around 48,000 vending units in operation - confirmed it was on track to deliver full-year profits in line with expectations. It is currently forecasting pre-tax profits of between £76m and £80m for the full year.

Serge Crasnianski, chief executive, said: "We are pleased to report record trading momentum in the first half, driven by a strong performance from our rapidly growing laundry operations.

"The group's predictable revenue streams and highly cash-generative characteristics continue to support our strong balance sheet. We have a clear growth strategy and competitive advantage."

However, ME also noted it had yet to receive any offer proposals. Last month, the firm said it was "evaluating strategic options" to enhance shareholder value, including a potential sale.

But on Tuesday it confirmed: "To date, the group is not in receipt of any offer proposals. There can be no certainty that any firm offer will be made, nor as to the terms on which any offer might be made."

Shares in the FSE 250 firm were up 2% at 222p as trading got underway at 0830 BST.