ME Group International (MEGP) H2 2024 earnings summary

Executive summary

• Achieved record profit before tax of £73.4 million for FY 2024, up 9.4% year-over-year, driven by strong growth in laundry operations and stable photobooth performance.

• Revenue increased 3.4% year-over-year (6.8% excluding FX), with EBITDA up 7.1% and margin expanding to 37.1%.

• Rapid expansion of Revolution Laundry, with 1,168 units installed (900 net new, 268 relocations) and key partnerships secured for further growth.

• Continued innovation with the launch of Kee.ME automated key cutting service and next-generation photobooths.

• Returned £29.8 million to shareholders, with a 6.8% increase in total dividend, reflecting strong shareholder returns.

Financial highlights

• Revenue: £307.9 million, up 3.4% year-over-year (6.8% excluding FX impact).

• EBITDA: £114.2 million, up 7.1% (10.2% excluding FX), margin at 37.1%.

• Profit Before Tax: £73.4 million, up 9.4% (10.4% excluding FX).

• Operating cash flow: £107.4 million; net cash position increased to £38.2 million.

• Diluted EPS: 14.27p, up 7.1%; total dividend: 7.9p per share, 55.3% payout ratio.

Outlook and guidance

• Plans to install 1,200 net Revolution laundry machines in 2025, targeting 100 per month.

• Capex for laundry operations expected at £28–32 million in 2025; photobooth Capex at £10–12 million.

• FY25 Profit Before Tax guidance: £76–80 million.

• Continued focus on innovation, R&D, and expanding partnerships to drive long-term growth.