ME Group International (MEGP) H1 2025 earnings summary

Executive summary

• Record H1 2025 profitability achieved, with profit before tax up 13.3% to £34.0m, driven by rapid expansion and strong performance in laundry operations, now accounting for over a third of vending revenue and nearly half of group EBITDA.

• EBITDA rose 3.9% to £53.2m, with margin improving to 34.6%; diluted EPS increased 12.8% to 6.74p; interim dividend up 11.6% to 3.85p per share.

• Cash generated from operations increased by 14.1% year-over-year, supporting higher dividends and reinvestment.

• Strategic progress included deployment of 523 new Revolution laundry units and a small acquisition in Belgium, adding 116 photobooths.

• Diversification and innovation remain priorities, with ongoing investment in R&D and new service launches.

Financial highlights

• Revenue up 2.3% to £153.8m; up 4.7% at constant currency and 5.9% excluding divested Sampa/SEMPA; EBITDA up 3.9% to £53.2m, margin at 34.6%.

• Profit before tax grew 13.3% to £34.0m, aided by operational leverage and increased machine count.

• Cash generated from operations: £47.6m (+14.1%); net cash improved by £14.6m to £36.2m (+66.8%).

• Diluted EPS up 12.8% to 6.74p; interim dividend up 11.6% to 3.85p, returning £14.5m to shareholders.

• Capex: £28.8m, mainly in laundry and photobooth expansion.

Outlook and guidance

• Confident outlook for FY 2025, with profit before tax expected between £76m and £80m and another year of record profitability.

• H2 expected to be seasonally stronger, with positive trading momentum and focus on laundry and photobooth expansion.

• Targeting installation of 1,200 net new Revolution Laundry machines in 2025, up from 900 last year; long-term goal to reach 20,000 units by 2034.

• Board evaluating strategic options to enhance shareholder value, including potential offers for the Group.