ME Group International (MEGP) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with revenue up 4.6% to £150.4m and EBITDA up 11.1% to £51.2m, driven by growth in core laundry and photobooth operations despite FX headwinds.

• Wash.ME laundry operations led growth, with revenue up 16.7% to £44.1m and Revolution laundry units up 18.0%; 420 new machines installed.

• Highly cash generative, supporting increased shareholder returns and future growth; interim dividend up 16.2% to 3.45p per share.

• Board remains confident of delivering record profitability for FY 2024 in line with market expectations.

Financial highlights

• Revenue rose 4.6% to £150.4m (+8.6% ex-FX); EBITDA up 11.1% to £51.2m (+14.8% ex-FX), margin 34%.

• Profit before tax grew 10.3% to £30.0m (+13.6% ex-FX); profit after tax £22.6m (+10.8%).

• Diluted EPS up 11.9% to 5.97p; interim dividend per share up 16.2% to 3.45p.

• Cash generated from operations up 13.3% to £41.7m; net cash at £21.7m after investments and dividends.

• Capex increased to £26.6m in H1 2024 (up £5.5m YoY) for machine rollouts.

Outlook and guidance

• H2, the seasonally strongest period, has started strongly with positive trading momentum.

• Strong pipeline for Revolution laundry machines, targeting 80-90 installations per month in H2 2024.

• Rollout of next-generation photobooths, aiming for 2,000-2,500 installations by FY 2024 end.

• Board confident in delivering record profitability for the year, in line with market expectations.