ME Group reports record profitabilty

ME Group, the instant-service company formerly known as Photo Me International, reported record profitability for the full year ending Oct. 31, 2024. The company cited highlights like a rapid expansion of laundry operations across key geographies, a record pipeline of machine installations with key strategic partners, and the launch of a new automated cutting service, Kee.ME

The company reported group revenue increased by 3.4% to £307.9 million (2023: £297.7 million), largely driven by the expansion of laundry services. Wash.ME Revolution laundry vending revenue increased by 19.1% to £90.6 million (2023: £76.1 million) with a record 1,168 Revolution laundry machines installed during the year. The total number of Revolution machines increased 16.3% to 6,433, in line with our target rate of 80-90 installations each month.

Photo.ME remained a stable business for the Group, with vending revenue up 0.4% at £173.2 million (2023: £172.5 million). Excluding the effect of foreign exchange, the unit it was up 4.4%

“I am pleased to report a year of strong strategic progress with record profitability for the Group,” said Serge Crasnianski, CEO & Deputy Chairman. “We have continued to deliver on our long-term strategy of expanding our laundry business across new and existing geographies, which is a key focus for the Group, as well as upgrading our well-established estate of photobooths.

“During the year we launched Kee.ME, our new automated key-cutting service, which further evidences our ability to develop and deploy new services in response to identifying market opportunities. The Board remains confident in the Group’s growth strategy and strong financial position, which provide a platform for future growth opportunities.”

KEY FINANCIALS

¹ EBITDA is profit before tax, depreciation, amortisation, non-operating income/expense and finance cost and income.

² Net cash excludes investments in convertible bonds (£3.7 million) and lease liabilities (£11.8 million).  See note 8 for details of net cash.

³ Interim Dividend of 3.45p per ordinary share paid on 29 November 2024 (£13.0 million). Recommended Final Dividend will be paid on 23 May 2025, subject to approval at the Annual General Meeting.

⁴ Constant currency is 2024 results translated using the prior year’s foreign exchange rates. This excludes the impact from foreign exchange rate movements (“FX impact”) during FY 2024, particularly the Japanese yen which saw a 12% decrease in value against pound sterling (average rate of exchange used in FY2024 was Yen/£ 191.71 vs FY 2023: 171.68), and a 2.1% decrease in the euro against pound sterling (average rate of exchange used in FY 2024 was €/£ 1.173 vs FY 2023: 1.149).