Trading Update

ME Group International plc (LON: MEGP), the instant-service equipment group, announces an update on the Group's trading for the six months ended 30 April 2025 ("H1 2025").

Trading Update

The Group is pleased to report that record trading momentum has continued in the first half of the year, with Group profit before tax up approximately 14% (up approximately 17% at constant currency1) and Group revenue up approximately 2% (up approximately 4% at constant currency1), driven by the strong continued performance in our laundry business. Excluding the H1 2024 contribution from SEMPA SAS, which was sold in May 2024, revenue in H1 2025 was up approximately 3.5% year-on-year (up approximately 6% at constant currency1).

Laundry operations delivered a strong performance with revenue up 13.3% (up 15.7% at constant currency1). This reflected ongoing demand across all our geographies. In line with the Group's focus on laundry expansion, new machine installations continued at pace, particularly across France and the UK, with a further 550 net new machines installed in H1 2025. The Group remains on track to install a total of 1,200 net Revolution laundry machines across target geographies in FY 2025.

Photobooth revenue is down approximately 3.3% (down approximately 1.1% at constant currency1), primarily due to a technical issue with new printers which has now been resolved but caused an estimated 2% drop in photobooth revenue in H1 2025. The Group received compensation from the supplier in connection with this issue. The Group is on track to install its target of 3,200 next-generation photobooths in FY 2025 as it continues to upgrade and replace existing machines.

In March 2025, the Group completed a small acquisition of a photo ID competitor in Belgium, which will see ME Group add an additional 116 photobooths to its portfolio, all of which were profitable [in the prior year]. This further evidences delivery of the Group's growth strategy through expansion in existing and new geographic territories. The acquisition was funded via the Group's cash balances.

Financial Position

The Group has predictable revenue streams, is highly cash generative, and has a strong balance sheet. At 30 April 2025, the Group's net cash position was up 69.1% to £36.2 million (H1 2024: £21.7 million).

Outlook

We are pleased to report further progress and profit growth in H1 2025, 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 FY 2025 profit before tax will be between £76 million and £80 million.

The Board remains focused on delivering against its long-term strategy to grow its core photobooth and laundry activities. The Group's key strengths underpin its significant competitive advantage and continue to position it for long-term success.

The Group will publish its interim results for the six months ended 30 April 2025 in mid-July 2025.

1 At constant currency rate. In H1 2025, the Japanese yen saw a 2.5% decrease in value against Pound Sterling (average rate of exchange used in H1 2025 was yen/£ 192,64 vs H1 2024 yen/£ 187.64), and a 2.7% decrease in the euro against pound sterling (average rate of exchange used in H1 2025 was 1.194 vs H1 2024: 1.163).

The Company's shares have been listed on the London Stock Exchange since 1962.