REG - ME Group Intl. - Annual Results and Publication of Annual Report
24/02/2025 07:00
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RNS Number : 1309Y ME Group International PLC 24 February 2025
24 February 2025
ME GROUP INTERNATIONAL PLC
("ME Group" or the "Group" or the "Company")
Audited annual results for the 12 months ended 31 October 2024
Another record year of profitability, with continued margin expansion
and execution of the Wash.ME growth strategy
ME Group International plc (LSE: MEGP), the instant-service equipment group,
announces its results for the 12 months ended 31 October 2024 ("2024").
SUMMARY OF 2024
· Another record year of profitability
· Rapid expansion of laundry operations across key geographies
· Record pipeline of machine installations with key strategic
partners
· Innovation strategy showcased through the launch of a new automated
cutting service, Kee.ME
· Strong cash generation through operations
· Return of cash to shareholders with 6.8% increase in total dividend
KEY FINANCIALS
2024 2023
Reported Constant Currency(4) Reported
Revenue £307.9m £317.8m £297.7m
EBITDA(1) £114.2m £117.5m £106.6m
Profit before tax £73.4m £74.1m £67.1m
Gross cash £86.1m £89.8m £111.1m
Net cash(2) £38.2m £41.8m £33.9m
Cash generated from operations £107.4m n/a £109.9m
Diluted earnings per share 14.27p 14.41p 13.31p
Total dividends per ordinary share(3) 7.90p n/a 7.39p
(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).
FINANCIAL HIGHLIGHTS
· Group revenue increased by 3.4% to £307.9 million (2023: £297.7
million), largely driven by the expansion of laundry services. Excluding FX
impact(4) revenue was up 6.8% excluding FX impact(4)
· Wash.ME Revolution laundry vending revenue increased by 19.1% to
£90.6 million (2023: £76.1 million) with a record 1,168 number of Revolution
laundry machines installed during the year. Excluding FX impact(4) up 21.2%
· 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 FX
impact(4) it was up 4.4%
· Group EBITDA increased by 7.1% to £114.2 million (2023:
£106.6million). Excluding FX impact(4) it was up 10.2%.
· Group EBITDA margins expanded to 37.1% (2023: 35.8%), which reflected
the continued expansion of Revolution laundry machines and margin improvements
· Wash.ME EBITDA margin expanding to 51.4% (2023: 51.1%)
· Record profit before tax at £73.4 million (2023: £67.1 million),
up 9.4%. Excluding FX impact(4) up 10.4%.
· Profit before tax margin expanded to 23.8% (2023: 22.5%), which
reflected the Group's continued focus on delivering high-quality and
profitable growth
· Profit before tax remains the key financial metric for the Group
· The Group remains highly cash generative, with cash generated from
operations at £107.4 million (2023: £109.9 million), whilst net cash was up
12.7% at £38.2 million (2023: £33.9 million). Excluding FX impact(4) it was
up 23.3%
· Total dividend up 6.8% at 7.90 pence per Ordinary Share (Interim
dividend of 3.45 pence and proposed final dividend of 4.45 pence per Ordinary
Share)
Serge Crasnianski, CEO & Deputy Chairman, commented:
"I am pleased to report a year of strong strategic progress with record
profitability for the Group.
"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.
"Innovation and diversification are core to the Group and this underpins our
approach to meeting the needs of our consumers in each of the jurisdictions we
operate in. 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."
PUBLICATION OF ANNUAL REPORT AND ACCOUNTS
On Monday 24 February 2025, the Company published its annual report and
accounts for the financial year ended 31 October 2024 (the "Annual Report").
The Annual Report is available on the Company's website at www.me-group.com
(http://www.me-group.com) .
The Annual Report will be posted to those shareholders who have not chosen to
receive electronic communication or communication through the Company's
website.
A copy of the Annual Report will also be submitted to the National Storage
Mechanism and will be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
ENQUIRIES:
ME Group International plc +44 (0) 1372 453 399
Stéphane Gibon, CFO ir@me-group.com
Vlad Crasneanscki, Head of Investor Relations
Hudson Sandler +44 (0) 20 7796 4133
Wendy Baker / Nick Moore me-group@hudsonsandler.com
NOTES TO EDITORS
ME Group International plc (LSE: MEGP) is an international market leader in
automated self-service equipment aimed at the consumer market.
The Group operates, sells and services a wide range of instant-service vending
equipment across 18 countries in its key regions of Continental Europe, the UK
& Republic of Ireland and Asia Pacific. The Group's services include:
Core activities:
· Photo.ME Photobooths and integrated biometric identification solutions
· Wash.ME Unattended laundry services and launderettes
Ancillary activities:
· Print.ME High-quality digital printing kiosks
· Other vending Primarily foodservice vending equipment (Feed.ME), Children's rides
(Amuse.ME), Photocopier services (Copy.ME)
The Group has a proven track record of innovation and diversification of its
products and services enabling it to respond to the evolving needs of its
customers and consumers.
The Group benefits from well-established partnerships and long-term contracts
with major site owners in attractive, high-footfall locations, enabling it to
offer multiple products and services onsite. Partners include supermarkets,
petrol forecourts, shopping malls (indoors and outdoors), transport hubs, and
administration buildings (City Halls, Police etc.).
The Company's shares have been listed on the London Stock Exchange since 1962.
For further information: www.me-group.com (http://www.me-group.com)
CHAIRMAN'S STATEMENT
2024 Overview
I am pleased to report the Group's financial results for the 12 months ended
31 October 2024, which was yet another year of record profitability.
In 2024, the Group delivered a strong performance across its key financial
metrics including a 3.4% increase in revenue (up 6.8% excluding FX impact(4)),
a 7.1% increase in EBITDA (up 10.2% FX impact(4)) and, most encouragingly, a
9.4% increase in reported profit before tax (up 10.4% excluding FX impact(4)).
Profit before tax during the period reached a record level of £73.4 million.
This performance was achieved despite foreign exchange headwinds through the
financial year ("FX impact(4)") which saw the value of the Japanese yen and
the euro against the British pound sterling decline by 12.0% and 2.1%
respectively compared with 2023.
Given the FX headwinds throughout 2024, the Group is exploring options to
mitigate its exposure to currency risk. This includes hedging its large GBP
commitments, such as dividends. However, as the Group earns a large share of
its revenue in foreign currencies, its consolidated results will be impacted
by exchange rate fluctuations to some extent.
This strong performance reflects robust demand for our products and services
as well as the significant competitive advantages that ME Group holds which
position the Group for long-term success.
In 2023, we were pleased to have been included as a constituent of the FTSE
250 index and, since then, the Group has continued to deliver on its growth
strategy and build on our position as a leader in instant-service vending
equipment, primarily aimed at the consumer market.
Our growth strategy
The Group's growth strategy is primarily focused on laundry expansion as we
continue to diversify our operations and drive attractive levels of return on
invested capital. This is reflected by our strong performance against our
targeted payback periods and return on capital, which significantly exceeds
our cost of capital.
Our core activity is to install and operate automated vending equipment,
primarily photobooths and laundry machines, in high footfall areas in return
for commission and/or a fixed fee. We benefit from an established and dominant
market position and high barriers to entry, underpinned by the Group's key
strengths which include long-standing partnerships with site owners; growth of
our laundry operations; stable cash flows from our established photobooth
estate; and the extended lifecycle of our assets.
Our innovative approach allows us to refresh and diversify the services
available through our machines, alongside a disciplined financial approach and
a focus on minimising production and operational costs, enabling us to
capitalise on operating leverage as we grow our machine estate.
The Board
Post-period end, the Group announced two changes to the composition of its
Board of Directors.
On 6 November 2024, Emmanuel Olympitis (Non-executive Director) informed the
Board of his decision to step down from his role and leave the Board with
effect from 30 November 2024. Emmanuel served as Senior Independent Director,
Chair of the Remuneration Committee and was a member of the Audit and
Nomination Committees.
Following Emmanuel's departure, René Proglio, an Independent Non-executive
Director and Chair of the Audit Committee, became the Senior Independent
Director and Françoise Coutaz-Replan, an Independent Non-executive Director
and member of the Audit and Remuneration Committees, became Chair of the
Remuneration Committee and she joined the Nomination Committee.
On 3 December 2024, Camille Claverie (Non-executive Director) informed the
Board of her decision to step down, with effect from 4 December 2024.
On behalf of the Board, I would like to thank Emmanuel and Camille for their
hard work and valuable contributions over the years and we wish them all the
best for the future.
The Board of Directors continues to believe the Company has a strong
leadership team in place to continue delivering on the Group's long-term
growth strategy. Given that two Non-executive Directors stepped down after the
year end, the Nomination Committee is considering the composition of the Board
in the current financial year.
Dividends
The Company's dividend policy seeks to pay annual dividends in excess of 55%
of the Group's annual profits after tax, subject to market and capital
requirements. Typically, one-third of this is paid as an interim dividend
(paid in November) and the remaining two-thirds is paid as a final dividend
(paid in May).
In line with this policy and the strong financial performance, the Board
declared an interim dividend in respect of FY2024 of 3.45 pence per Ordinary
share (the "Interim Dividend"), an increase of 16.2%, which amounted to £13.0
million, paid to shareholders on 29 November 2024, for those on the register
on 7 November 2024.
The Board has recommended a final dividend for 2024 of 4.45 pence per Ordinary
share ("Final Dividend") amounting to £16.8 million. Together with the
Interim Dividend, this brings the total dividend for FY 2024 to 7.90 pence per
Ordinary share (£29.8 million), an increase of 6.8% and representing 55.3% of
the Group's earnings per share for FY24.
Subject to approval at the Company's annual general meeting on 25 April 2025,
the Final Dividend will be paid on 23 May 2025 to shareholders on the register
at close of business on 25 April 2025. The ex-dividend date will be 24 April
2025.
Cancellation of Treasury Shares
On 12 July 2024, the Board passed a resolution to cancel all of its 2,368,626
ordinary shares of 0.5 pence each held in treasury with effect from the same
date. These shares held in treasury were purchased via the previously
announced buyback at an average price of 133.17 pence per ordinary share. As
of 31 October 2024, the total issued share capital comprised 376,763,753
ordinary shares of 0.5p each and the total number of voting rights is
376,763,753.
Defined benefit pension scheme
The Company runs a defined benefit pension scheme, the Photo-Me International
Plc Pension and Life Assurance Fund. In November 2024, the Trustee of the Fund
entered into an insurance contract with Legal & General that provides
pensions for certain members of the Fund. As a result, the benefits for all
members of the Fund are now secured with an insurance company, via policies in
the name of the Trustee. The intention is that in due course these policies
will be transferred into the name of the individual members and the Fund
wound-up.
To provide additional security to the Fund, the Company previously set up an
Escrow account which the Fund could call upon in certain circumstances. This
has a value of circa £1 million and once the Fund has been wound-up the
Escrow funds can be released to the Company.
Sustainability
We remain committed to strengthening our sustainability activity to deliver
our goals through inventing eco-responsible local services to support growth
by integrating social, environmental, and economic expectations into our
strategy and operations. Details of our Sustainability approach and KPIs are
set out on pages 46 to 65 of the 2024 Annual Report.
Looking ahead
We are focused on delivering our long-term growth strategy, driven by further
progress in our core photobooth and laundry activities. We will continue our
journey to modernise and upgrade our machine estate as we rollout our next
generation photobooth, and at the same time continue to evolve our business
mix through the rapid expansion of our laundry operations. Furthermore, we
will further diversify the products and services we offer our strategic
partners and end consumers through our innovation strategy.
In FY 2025 year-to-date, we have continued to make progress in expanding our
Revolution laundry estate, with Revolution laundry installations progressing
as planned. In FY 2025, we anticipate installing a total of 1,200 net
Revolution laundry machines across our target geographies and expect to
install 3,200 next-generation photobooths. As a result, the Board anticipates
profit before tax to be between £76 million and £80 million.
The Board remains confident in the Group's growth strategy and strong
financial position, which provide a platform for future growth opportunities.
Sir John Lewis OBE
Non-executive Chairman
24 February 2025
CHIEF EXECUTIVE'S REPORT
BUSINESS REVIEW
We are pleased to report another year of strong performance and record
profitability in 2024.
The positive trading momentum throughout H1 2024 continued in H2 2024 and
reflected further strategic progress from the Group's core automated
photobooth and laundry operations which are both exceptionally profitable and
highly cash generative. We remained focused on profitability, returns and cash
generation, with these metrics being key performance indicators for the Group.
Our core business areas have once again delivered good growth across our
geographies, which in turn delivered revenue, EBITDA and Profit Before Tax
growth for the Group.
Financial performance
In line with the Group's strategic focus, our core business areas of Photo.ME
and Wash.ME continued to be the main driver. Our photobooth operations
(Photo.ME) continued to deliver stable cash flow which supported our
investments across our business, whilst laundry operations (Wash.ME) further
expanded in terms of the number of units and their financial contribution to
the Group.
Total revenue increased by 3.4% to £307.9 million (2023: £297.7 million).
However, excluding FX impact(4) revenue grew by 6.8%. This performance was
mainly driven by strong growth in our Wash.ME Revolution laundry business
which delivered a 19.1% increase to vending revenue year-on-year (up 21.2%
excluding the FX impact(4)) as we continued to expand our laundry operations
in key geographies, with Wash.ME vending revenue in Continental Europe up
19.8% and up 15.7% in the UK & Republic of Ireland.
By geography, our largest region Continental Europe, reported revenue growth
of 1.9% (up 3.8% excluding FX impact(4)) and the UK & Republic of Ireland
reported revenue growth of 2.1% (up 2.7% excluding FX impact(4)). Asia Pacific
revenue increased by 12.2% (up 24.6% excluding FX impact(4)) following
integration of the recent photobooth acquisition in Japan.
As a result of the above, Group EBITDA increased by 7.1% to £114.2 million
(up 10.2% excluding FX impact(4)), and delivered an expanding Group EBITDA
margin of 37.1% (2023: 35.8%).
Reported profit before tax improved by £6.3 million to £73.4 million (2023:
£67.1 million), an increase of 9.4% (up 10.4% excluding FX impact(4)).
The Group's corporation tax charge for the year was £2.9 million higher at
£19.3 million, resulting in an effective tax rate of 26.3%. In 2023, the tax
charge was £16.4 million, an effective tax rate of 24.5%.
Capital expenditure was £54.6 million, primarily related to laundry (£25.4
million), photobooths (£17.1 million), kiosks (£0.7 million), and plant,
machinery and vehicles (£4.5 million).
Cashflow and net cash position
31 October 31 October
2024 2023
Opening net cash £33.9m £34.0m
Cash generated from operations £107.4m £109.9m
Payments in relation to provisions and pensions £(0.8)m £(0.9)m
Net interest paid £(1.9)m £(1.2)m
Taxation £(17.5)m £(20.2)m
Net cash generated from operating activities £87.2m £87.6m
Net cash used in investing activities £(47.6)m £(57.0)m
Net cash used in financing activities £(34.7)m £(30.8)m
Net cash generated / (utilised) £4.9m £(0.2)m
Impact of exchange rates £(0.6)m £0.1m
Net cash inflow / (outflow) £4.3m £(0.1)m
Closing net cash £38.2m £33.9m
Consisting of:
Cash and cash equivalents £86.1m £111.1m
Non-current borrowings £(28.5)m £(50.2)m
Current borrowings £(19.4)m £(27.0)m
Closing net cash £38.2m £33.9m
The Group remains highly cash generative, with cash generated from operations
amounting to £107.4 million (2023: £109.9 million).
In the year the Group disposed of property and other fixed assets for £3.3m
and a subsidiary, SEMPA SAS, for £3.7m. These proceeds offset with capital
expenditure of £54.6m resulting in lower net cash used in investing
activities of £47.6m.
The Group remains well capitalised and in a strong financial position, with
net cash of £38.2 million as at 31 October 2024 (2023: £33.9 million), up
12.7%, and excluding FX impact(4), net cash increased by 23.3%.
Further details of the Group's performance by business area and geographic
region are set out below.
Overview of principal business areas
The Group's operations are categorised into core activities (photobooths and
laundry) and ancillary activities (digital printing and other vending). Below
is an overview of each of the Group's business areas.
Photo.ME - photobooths and secure integrated biometric photo ID solutions
(Core business)
12 months ended 12 months ended
31 October 2024
31 October 2023
Number of units in operation 30,613 30,762
Percentage of total group vending estate (number of units) 63.5% 64.7%
Vending Revenue(1) £173.2m £172.5m
Capex £17.1m £8.9m
EBITDA £61.6m £61.8m
(1) Vending revenue is earned from machines in operation and excludes revenue
from the sale of equipment, consumables, spare parts and services. This has
previously been referred to as operating revenue.
Our established photobooth operations remain the Group's largest business by
number of units, revenue and EBITDA contribution. This core business area
delivered solid demand and stable cash flow. Part of the cash generated from
photobooths is reinvested to support the Group's growth strategy, including
the ongoing expansion of Wash.ME.
Photobooth activities performed as expected with total vending revenue up 0.4%
at £173.2 million (up 4.4% excluding FX impact(4)). While Continental Europe
is the largest contributor of vending revenue by region, Asia Pacific
delivered the strongest growth, up 15.6% year-on-year (up 28.7% excluding FX
impact(4)), which reflected the expansion of the photobooth service in Japan
following the Group's acquisition in October 2023. Vending revenue in the UK
and Ireland was down by 10.6% due to end of a high commission contract that
has had an impact on revenues but a much more limited impact on profits due to
the high commission rate.
In total, Photo.ME represented 56.3% of Group revenue. The average revenue per
machine (excluding VAT) was £5,644 per year (2023: £5,908). However, this
reduction was mainly due to currency impact alongside slightly lower demand in
H1 2024. Excluding the FX impact(4), the average revenue per machine reduced
by 0.7%.
EBITDA was broadly flat at £61.6 million (2023: £61.8 million) and
represented 53.9% of total Group EBITDA. The EBITDA margin was 35.6%.
Capex increased to £17.1 million, up 92.1%, as the Group progressed with its
rollout of next-generation photobooths, with more than 1,980 installed during
2024, primarily in France, prioritising the replacement of older machines in
high-footfall locations.
At 31 October 2024, the number of photobooths in operation was 30,613, in line
with the prior year (2023: 30,762). Photobooths represented 63.5% of the
Group's total vending estate.
Growth strategy update
The photo ID market across existing and new geographic markets remains
attractive for longer-term opportunities.
In 2025, we plan to invest between £10.0 million and £12.0 million in our
photobooth operations, with the majority of this investment targeted on
replacing old machines.
In France, which accounts for more than half of the Group's photobooth
revenue, the Group is progressing deployment of its next-generation
photobooth, with a total of 1,980 machines installed to date. These machines
offer consumers enhanced services in addition to core official photo ID secure
upload technology, such as user personalisation through AI, photo filter
technology for fun images and 'mobile to print' functionalities. While
installations have been slightly slower than anticipated, partly due to some
technical issues, the Group plans to have installed 8,000 next-generation
photobooths by the end of financial year 2027.
In addition, the Group is modernising the hardware of its existing photobooth
estate by installing new proprietary software. This includes additional
features and improved consumer functionality which is being installed across
our Starbooth estate in France. The upgrade programme is expected to be
completed by October 2025 and will see c3,200 Starbooths upgraded.
Last year, we announced a trial of 11 photobooths across Sydney and Melbourne,
having entered the Australian market in 2021 via a small acquisition. The
trial is ongoing and operations in Australia remain at an early stage.
Wash.ME - Unattended Revolution laundry services and launderettes (Core
Business)
12 months ended 12 months ended
31 October 2024
31 October 2023
Total Laundry units deployed (owned, sold and acquisitions) 7,892 6,870
Total revenue from Laundry operations(1) £95.8m £81.6m
Total Laundry EBITDA £47.0m £39.5m
Revolution
- Number of Revolutions in operation 6,433 5,533
- Percentage of total group vending estate (number of units) 13.3% 11.6%
- Vending revenue from Revolutions(2) £90.6m £76.1m
- Revolution capex £25.4m £24.7m
(1) Revenue from the operation of laundry machines plus revenue from the sale
of laundry machines.
(2) Vending revenue is revenue earned from machines in operation and excludes
revenue from the sale of equipment, consumables, spare parts and services.
This has previously been referred to as operating revenue.
Our estate of Wash.ME unattended laundry services offer consumers affordable,
large-capacity washing machines in convenient locations, whilst driving repeat
business to partner sites and increasing dwell time. This core business area
is the Group's fastest-growing business by number of machine installations,
revenue and EBITDA.
Total revenue from laundry operations grew by 17.4% to £95.8 million (up
19.5% excluding FX impact(4)), driven by the expansion of our Revolution
laundry operations which generate a higher level of turnover.
At 31 October 2024, the total number of laundry units deployed (owned and
sold) was up 14.9% at 7,892. Total laundry EBITDA increased by 19.0% to £47.0
million (up 21.0% excluding FX impact(4)). Total laundry EBITDA margin was
49.1%, compared with 48.4% in 2023.
Revolution laundry operations driving growth
During 2024, a record number of Revolution machines were installed, with 1,168
machines (consisting of 900 new machines and 268 relocations) added across key
regions including France and the UK. This resulted in a 16.3% increase in the
total number of Revolution machines to 6,433, in line with our target rate of
80-90 installations each month. Revolution laundry machines accounted for
13.3% of the Group's total estate by number of machines, up from 11.6% in
2023.
Vending revenue from Group-operated Revolution laundry machines grew by 19.1%
to £90.6 million (up 21.2% excluding the FX impact(4)). This growth reflected
an increase in consumer demand and estate expansion across our key focus
markets, with laundry vending revenue in Continental Europe up 19.8% (up 22.2%
excluding FX impact(4)) and up 15.7% in the UK and Republic of Ireland (up
17.0% excluding FX impact(4)).
Revolution laundry operations represented 29.4% of Group revenue, up from
25.6% in 2023. The average revenue per machine (excluding VAT) increased by
2.3% to £15,143 per year (2023: £14,795). Excluding the FX impact(4), the
average revenue per machine increased by 4.2%.
Revolution Capex increased 2.8% to £25.4 million, which was almost solely
related to the costs associated with deploying Revolution machines, including
purchase and installation costs.
Growth strategy update
The expansion of laundry operations is a key growth driver for the Group as we
continue to expand operations through new and existing partnerships in target
territories and convenient, high-footfall locations. During 2024 we secured
several new strategic partnerships, including with leading independent
forecourt operator Motor Fuel Group ("MFG"). Under the agreement with MFG, the
Group will be able to install and operate up to 300 Wash.ME Revolution laundry
machines across MFG sites in the UK over the next five years.
We signed a new agreement with Morrisons Supermarket Limited ("Morrisons") to
extend our existing partnership. Under the existing relationship, the Group
operates and maintains 500 photobooths, 250 children's rides and 37 Revolution
laundry machines across Morrisons sites in the UK. The new five-year agreement
will see the Group install at least 200 Revolution laundry machines at these
supermarket locations over the next two years.
These large scale roll-out partnerships help to increase visibility over
installations and these high quality locations ensure that our Revolution
Laundry units perform exceptionally well on a revenue basis.
During 2025 the Group plans to install circa 1,200 net Revolution laundry
machines in key territories, at an investment of between £28.0 million and
£32.0 million, with a target return on investment in approximately 18 months.
Print.ME - High-quality digital printing services (Ancillary business)
12 months ended 12 months ended
31 October 2024
31 October 2023
Number of units in operation 4,526 4,734
Percentage of total group vending estate (number of units) 9.4% 10.0%
Vending Revenue(1) £10.9m £11.3m
Capex £0.7m £3.1m
EBITDA £4.9m £4.2m
(1) Vending revenue is revenue earned from machines in operation and excludes
revenue from the sale of equipment, consumables, spare parts and services.
This has previously been referred to as operating revenue.
Our estate of digital printing kiosks offers a wide range of competitively
priced print formats and personalised products, with operations in France,
where most machines are situated, the UK and Switzerland. Print.ME is an
ancillary business area.
Vending revenue was 3.5% lower at £10.9 million (2023: £11.3 million), due
to some FX impact(4) and the redeployment of 240 machines to a new contract
with FNAC, a leading French multinational retail chain. This contract employs
a different business model and the revenue earned from it is recognised in
sales of consumables, outside of the Print.ME segment. This has contributed to
the like-for-like drop in vending revenue. Excluding the FX impact(4) vending
revenue was reduced by 1.8%.
The average revenue per machine (excluding VAT) was stable at £2,354 per year
and excluding the FX impact(4) it was £2,397 per year (2023: £2,374).
Capex during the period amounted to £0.7 million (2023: £3.1 million)
primarily focused on a programme of installing new lower-cost and compact
Speedlab machines in France.
EBITDA increased by 16.7% to £4.9 million (2023: £4.2 million) and it
represented 4.3% of Group EBITDA. The EBITDA margin increased to 45.0% (2023:
37.2%). Excluding the FX impact(4), EBITDA was 21.4% higher than in 2023.
At 31 October 2024, the Group had 4,526 digital printing kiosks in operation
(2023: 4,734) which account for 9.4% of the Group's total vending units in
operation (2023: 10.0%).
While Group capex is focused on growing its core activities, it continues to
invest in ancillary activities where target returns can be achieved. In 2025,
the Group plans to invest between £5.0 to £10.0 million of capex in the
Print.ME business to further roll out its new Speedlab machines, initially in
France.
Other Vending (including Feed.ME) (Ancillary business)
On 22 May 2024 the Group announced that, following a review of operations, its
subsidiary company ME GROUP GSS had sold its entire interest in SEMPA SAS
("Sempa") to Food Machine Invest. While the Feed.ME business area remains
attractive, it has developed more slowly post-pandemic than anticipated.
Subsequently, the Board is prioritising investment in the Group's core
activities, laundry and photobooths, where there are attractive long-term
opportunities, particularly in the growth of its laundry operations. Under
Feed.ME the Group operates 460 freshly squeezed orange juice vending machines
and continues to sell a small number of pizza vending equipment. Subsequently,
reflecting its size, Feed.ME business area has been incorporated into the
Group's ancillary business area of Other Vending.
In 2023 SEMPA contributed £4.8 million revenue. The comparative figures for
Other Vending have been adjusted to include Feed.ME.
Other Vending
12 months ended 12 months ended
31 October 2024
31 October 2023
Number of units in operation 6,629 6,496
Percentage of total group vending estate (number of units) 13.7% 13.6%
Vending revenue(1) £9.8m £10.6m
Revenue from the sale of equipment £18.2m £21.7m
Capex £2.7m £2.4m
EBITDA £11.2m £12.6m
(1) Vending revenue is revenue earned from machines in operation and excludes
revenue from the sale of equipment, consumables, spare parts and services.
This has previously been referred to as operating revenue.
At 31 October 2024, the Group operated 6,629 Other Vending units (2023:
6,496), which represented 13.7% of the Group's total vending estate by number
of units. These included 2,400 children's rides (Amuse.ME), 3,388 photocopiers
(Copy.ME), 460 freshly squeezed orange juice vending machines (Feed.ME) and
381 other miscellaneous machines.
These services are ancillary activities with machines typically located in
high-footfall locations alongside the Group's principal activities, there by
benefiting from existing site owner relationships and operating synergies.
Feed.ME units are mostly situated in Japan and Australia. Amuse.ME units are
mostly situated in the United Kingdom and the Netherlands. Copy.ME units are
mostly situated in France. The Group will continue to operate Other Vending
units where profitable.
In addition, the Group sells pizza-vending equipment in Continental Europe and
the UK, albeit on a small scale, with 29 pizza machines sold in 2024. It is
expected this will remain a small financial contributor to the Group going
forward.
Vending revenue from Other Vending was £9.8 million (2023: £10.6 million)
and represented 3.2% of the Group's total revenue. In addition, the Group
earned £18.2 million of revenue from the sale of food vending equipment and
the sale of other equipment, spare parts, consumables & services (2023:
£21.7 million).
EBITDA for Other Vending was £11.5 million (2023: £12.6 million), with an
EBITDA margin of 41.1%. Excluding the FX impact(4), total revenue was £29.1
million and EBITDA was £11.7 million.
Innovation and Diversification
The Group has a dedicated approach to innovation which supports the
diversification of our products and services. An in-house R&D team of 50+
engineers is focused on creating new complementary services and evolving the
services offered across our existing estate in response to ever-changing
consumer needs, whilst maximising return on investment.
Alongside its core activities, the Group continues to explore new services
which can address ever changing consumer needs. Our latest developments
include Kee.ME, a new automated key cutting booth, which builds on the
heritage of the Company's Grenoble-based subsidiary, KIS (Key Independent
Systems), founded in 1963, commercialised the first automatic key cutting
machine. To date, the Group has three machines in operation in France and,
whilst at an early trial stage, the initial results are positive and have
shown good interest from our customers and from consumers.
REVIEW OF PERFORMANCE BY GEOGRAPHY
Commentary on the Group's financial performance is set out below, in line with
the segments as operated by the Board and the management of the Group. These
segmental breakdowns are consistent with the information prepared to support
the Board's decision-making. Although the Group is not managed around product
lines, some commentary below relates to the performance of specific products
in the relevant geographies.
Vending units in operation
At October 2024 At October 2023
Number % of total Number % of total
of units estate of units estate
Continental Europe 26,909 55.8% 26,232 55.1%
UK & Republic of Ireland 6,321 13.1% 6,297 13.2%
Asia Pacific 15,000 31.1% 15,037 31.6%
Total 48,230 100% 47,566 100%
The total number of vending units in operation at 31 October 2024 increased by
1.4% to 48,230 (2023: 47,566), predominantly driven by laundry installations
across Continental Europe and the UK & Republic of Ireland.
Key financials
The Group reports its financial performance based on three geographic regions
of operation: (i) Continental Europe; (ii) the UK & Republic of Ireland;
and (iii) Asia Pacific.
Revenue by geographic region
12 months ended 12 months ended
31 October 2024
31 October 2023
Continental Europe £209.0m £205.2m
UK & Republic of Ireland £49.2m £48.2m
Asia Pacific £49.7m £44.3m
Total £307.9m £297.7m
Analysis of Revenue by Geographic Region
12 months ended 31 October 2024 Continental United Kingdom Asia
Europe & Ireland Pacific Total
Photo.ME £111.6m £19.3m £42.3m £173.2m
Wash.ME £64.1m £27.2m £0.2m £91.5m
Print.ME £10.7m £0.1m £0.1m £10.9m
Other Vending (including Feed.ME) £1.8m £1.6m £6.4m £9.8m
Total Vending Revenue £188.2m £48.2m £49.0m £285.4m
Sales of equipment, spare parts, consumables & services £20.8m £1.0m £0.7m £22.5m
Total Revenue £209.0m £49.2m £49.7m £307.9m
12 months ended 31 October 2023 Continental United Kingdom Asia
Europe & Ireland Pacific Total
Photo.ME £114.3m £21.6m £36.6m £172.5m
Wash.ME £53.5m £23.5m £0.3m £77.3m
Print.ME £11.1m £0.1m £0.1m £11.3m
Other Vending (including Feed.ME) £2.1m £1.8m £6.7m £10.6m
Total Vending Revenue £181.2m £47.0m £43.5m £271.7m
Sales of equipment, spare parts, consumables & services £24.0m £1.2m £0.8m £26.0m
Total Revenue £205.2m £48.2m £44.3m £297.7m
Operating profit by geographic region
12 months ended 12 months ended
31 October 2024
31 October 2023
Continental Europe £68.1m £62.6m
UK & Republic of Ireland £13.0m £12.4m
Asia Pacific £4.1m £4.3m
Corporate costs £(10.8)m £(11.8)m
Total £74.4m £67.5m
Total revenue increased by 3.4% to £307.9 million (2023: £297.7 million) and
operating profit by 10.2%, reflecting continued strong demand for our core
photobooth and laundry services, particularly across Continental Europe and
the UK & Republic of Ireland in 2024. Excluding FX impact(4), total
revenue was up 6.8% and Operating profit was up 13.2%.
Continental Europe
Continental Europe is the Group's largest region by both number of machines
and contribution to Group revenue. The reported performance was impacted by a
2.1% decrease in the value of the euro against the pound sterling.
Total revenue increased by 1.9% to £209.0 million (2023: £205.2 million)
driven primarily by a strong laundry performance, although this increase was
up 3.8% when excluding FX impact(4). The 13.3% decline in sales of equipment,
spare parts, consumables & services is due to the disposal of SEMPA in May
2024. Vending revenue was up 3.9% year-on-year. Continental Europe contributed
67.9% of total Group revenue.
Wash.ME achieved revenue of £67.9 million, an increase of 18.5% (2023: £57.3
million), as the Group continued to expand the number of Revolution units in
operation primarily in France. Excluding FX impact(4) the increase was 20.9%.
Photobooth operations continued to be a key contributor of total Group
revenue, with vending revenue from Photo.ME at £111.6 million (2023: £114.3
million), a reduction of 2.4% primarily due to FX impact(4). Excluding FX
impact(4), the reduction was 0.5%.
France remained a key focus for the ongoing next-generation photobooth rollout
programme and during the year the Company installed 1,200 units, slightly
behind the target level, taking the total number of machines in operation in
France to 1,600. The installation of next-generation photobooths remains a key
focus for the Group and in 2025 the Group expects to install 2,600 machines.
At 31 October 2024, 26,909 units were in operation in Continental Europe which
represented 55.8% of the Group's total estate.
UK & Republic of Ireland
Revenue increased by 2.1% to £49.2 million driven by a continued strong
performance for laundry in the region and contributed 16.0% of total Group
revenue.
Wash.ME revenue in the UK & Republic of Ireland increased by 15.4% to
£27.7 million (2023: £24.0 million) reflecting significant expansion, with
the Group marking the installation of its 1,000th Revolution laundry machine
in the UK, a key milestone in the laundry growth strategy. ME Group will
continue to expand its Wash.ME operations in the region.
As detailed above, the Group secured a number of new agreements including a
new partnership agreement with Motor Fuel Limited ("MFG"), the UK's largest
independent forecourt operator, and an extended agreement with Morrisons, a
leading UK supermarket.
Photo.ME vending revenue declined by 10.6% due to end of a high commission
contract that has had an impact on revenues but a much more limited impact on
profits due to the high commission rate.
Operating profit increased by 4.8% to £13.0 million (2023: £12.4 million),
which reflected the higher level of revenue for the region due to the large
expansion of the laundry business. The UK & Ireland contributed 17.5% of
Group operating profit.
As at 31 October 2024, there were 6,321 units in operation, an increase of
0.4% (2023: 6,297), representing 13.1% of the Group's total vending estate.
Asia Pacific
Revenue increased by 12.2% to £49.7 million compared to £44.3 million in
2023, driven by a strong photobooth performance in the region. The reported
performance was impacted by a 12.0% decrease in the value of the Japanese yen
against the pound sterling. Excluding FX impact, revenue increased by 24.6%
Vending revenue for photobooth services increased by 15.6% to £42.3 million
(2023: £36.6 million), which reflected the expanded portfolio of photobooths
following the full integration of 3,548 traditional photobooths acquired in
October 2023. Excluding the FX impact(4), revenue was up 28.7%.
In addition, the Group continues to operate 460 freshly squeezed orange juice
vending machines in Japan and Australia, and this market remains a growth
opportunity for the Group.
Operating profit decreased by 4.7% to £4.1 million, an increase of 9.3%
excluding FX impact(4).
Key Performance Indicators (KPIs)
The Group's growth strategy (set out on page 11 of the 2024 Annual Report) is
focused on growing its core business areas of laundry and photobooth
operations. The Group measures its strategic and operational performance using
different types of indicators. The main objective of these KPIs is to monitor
the Group's cash generation, long-term profitability, preservation of the
value of its assets, and returns to shareholders.
Description Relevance Performance
12 months ended 12 months ended
31 October
31 October
2024 2023
Total Group revenue at actual rate of exchange £307.9m £297.7m
Group Profit before tax £73.4m £67.1m
Increase in number of photobooths (149) 3,137
Net increase in number of Laundry units (operated) The increase in number of Revolutions is a constant priority and a main driver 900 779
for growth
Serge Crasnianski
Chief Executive Officer & Deputy Chairman
24 February 2025
PRINCIPAL RISKS
As with any business, the Group faces risks and uncertainties that could
impact the achievement of the Group's strategy.
These risks are accepted as inherent to the Group's business. The Board
recognises that the nature and scope of these risks can change; it therefore
regularly reviews the risks faced by the Group as well as the systems and
processes to mitigate them.
The table below sets out what the Board believes to be the principal risks and
uncertainties, their impact, and actions taken to mitigate them.
Nature of risk Description and impact Mitigation
Global economic conditions Economic growth has a major influence on consumer spending. The Group focuses on maintaining the characteristics and affordability of its
needs-driven products.
A sustained period of economic recession and a period of high inflation could
lead to a decrease in consumer expenditure in discretionary areas. Like most businesses around the world, the Group has had to face a significant
increase in supply chain and raw material costs, however, its strong position
in the markets in which it operates gives the Group significant pricing power.
The Group has no exposure to the invasion of Ukraine by Russia and other
conflict areas.
Volatility of foreign exchange rates The majority of the Group's revenue and profit is generated outside the UK, The Group hedges its exposure to currency fluctuations on transactions, as
and the Group's financial results could be adversely impacted by an increase relevant. However, by its nature, in the Board's opinion, it is very difficult
in the value of sterling relative to those currencies. to hedge against currency fluctuations arising from translation in
consolidation in a cost-effective manner.
Economic
Regulatory
Nature of risk Description and impact Mitigation
Centralisation of the production of ID photos In many European countries where the Group operates, if governments were to The Group has developed new systems that respond to this situation, leveraging
implement centralised image capture, for biometric passport and other 3D technology in ID security standards, and securely linking our booths to the
applications, or widen the acceptance of self-made or home-made photographs administration repositories. Solutions are in place in France, Ireland,
for official document applications, the Group's revenues and profits could be Germany, Switzerland and the UK.
affected.
Furthermore, the Group also ensures that its ID products remain affordable and
of a
high-quality.
Strategic
Nature of risk Description and impact Mitigation
Identification of new business opportunities The failure to identify new business areas. This may impact the ability of the Management teams constantly review demand in existing markets and potential
Group to grow in the long-term. new opportunities. The Group continues to invest in research in new products
and technologies.
Inability to deliver anticipated benefits from the launch of new products The realisation of long-term anticipated benefits depends mainly on the The Group regularly monitors the performance of its entire estate of machines.
continued growth of the laundry business and the successful development of New technology-enabled secure ID solutions are subjected to intensive trials
integrated secure ID solutions. Failure in this regard could lead to a lack of before launch and the performance of operating machines is continually
competitiveness. monitored.
Market
Nature of risk Description and impact Mitigation
Commercial relationships The Group has well-established, long-term relationships with a number of site- The Group's major key relationships are supported by medium-term contracts.
owners. The deterioration in the relationship with, or ultimately the loss of, The Group actively manages its site-owner relationships at all levels to
a key account would have an adverse, albeit contained, impact on the Group's ensure a high-quality service.
results, bearing in mind that the Group's turnover is spread over a large
client base and none of the accounts represent more than 2% of Group turnover. The Group continues to monitor the situation in both the French and the UK
markets.
To maintain its performance, the Group needs to have the ability to continue
trading in good conditions in France and the UK.
Operational
Nature of risk Description and impact Mitigation
Reliance on foreign manufacturers The Group sources most of its products from outside the UK. Consequently, the Conducting research into quality and ethics before the Group procures products
Group is subject to risks associated with international trade. This could from any new country or supplier. The Group maintains very close relationships
impact competitiveness and profitability. with both its suppliers and shippers to ensure that risks of disruption to
production and supply are managed appropriately.
Reputation The Group's brands are key assets of the business. Failure to protect the The protection of the Group's brands in its core markets is sustained with
Group's reputation and brands could lead to a loss of trust and confidence. certain unique features. The appearance of the machine is subject to high
This could result in a decline in our customer base. maintenance standards.
Furthermore, the reputational risk is diluted as the Group also operates under
a range of brands.
Product and service quality The Board recognises that the quality and safety of both its products and The Group continues to invest in its existing estate, to ensure that it
services are of critical importance and that any major failure could affect remains contemporary, and in constant product innovation to meet customer
consumer confidence and the Group's competitiveness. needs.
The Group also has a programme in place to regularly train its technicians.
Technological
Nature of risk Description and impact Mitigation
Failure to keep up with advances in technology The Group operates in fields where upgrades to new technologies are critical. The Group mitigates this risk by continually focusing on R&D.
Failure to exceed or keep in step could result in a lack of ability to
compete.
Cyber risk: Third party attack on secure ID data transfer feeds The Group operates an increasing number of photobooths capturing ID data and The Group undertakes an ongoing assessment of the risks and ensures that the
transferring these data directly to government databases. The rising threat of infrastructure meets the security requirements.
cybercrime could lead to business disruption as well as to data breaches.
Environmental
Nature of risk Description and impact Mitigation
Increased potential legislation and the rising cost of waste disposal. Energy The rising costs associated with compliance with such increased demands could The Group focuses on reducing the amount of waste produced; and the recovery,
consumption, water scarcity, and rising car fuel prices (for employees, impact on overall profitability. refurbishment and resale of electrical equipment, such as children's rides,
suppliers, transportation and final consumers) and raising awareness of the which promote the principle embodied in recent legislation of reuse before
climate crisis amongst consumers recycling.
GROUP FINANCIAL STATEMENTS
Group Statement of Comprehensive Income for the 12 months ending 31 October 2024
12 months ended 12 months ended
31 October
31 October
2024 2023
Notes £ '000 £ '000
Revenue 3 307,886 297,662
Cost of Sales (198,394) (194,413)
Gross Profit 109,492 103,249
Other Operating Income 209 194
Administrative Expenses (35,617) (35,351)
Reversal of impairment of trade receivables / (impairment) 303 (604)
Share of Post-Tax Profits from Associates 3 14
Operating Profit 74,390 67,502
Non-operating income - net 982 701
Finance Income 670 1,401
Finance Cost (2,621) (2,537)
Profit before Tax 73,421 67,067
Total Tax Charge 4 (19,331) (16,401)
Profit for the year 54,090 50,666
Other Comprehensive Income
Items that are or may subsequently be classified to Profit and Loss:
Exchange Differences Arising on Translation of Foreign Operations (4,839) 454
Exchange differences reclassified to income statement on disposal of 76 -
subsidiaries
Total Items that are or may subsequently be classified to profit and loss (4,763) 454
Items that will not be classified to profit and loss:
Remeasurement (losses) / gains in defined benefit obligations and other (520) (220)
post-employment benefit obligations
Deferred tax on remeasurement losses / (gains) 118 48
Total Items that will not be classified to Profit and Loss (402) (172)
Other comprehensive income for the year net of tax (5,165) 282
Total Comprehensive income for the year 48,925 50,948
Profit for the Year Attributable to:
Owners of the Parent 54,090 50,666
Non-controlling interests - -
54,090 50,666
Total comprehensive income attributable to:
Owners of the Parent 48,925 50,948
Non-controlling interests - -
48,925 50,948
Earnings per Share
Basic Earnings per Share 6 14.36p 13.41p
Diluted Earnings per Share 6 14.27p 13.33p
All results derive from continuing operations.
The accompanying notes form an integral part of these condensed consolidated
financial statements.
Group Statement of Financial Position as at 31 October 2024
31 October 31 October
2024 2023
(restated)
Notes £'000 £'000
Assets
Goodwill 7 11,006 18,888
Other intangible assets 7 14,362 17,822
Property, plant & equipment 7 136,332 118,124
Investment in associates 37 35
Financial instruments held at FVTPL 1,619 5,886
Other receivables 2,814 3,005
Non-Current Assets 166,170 163,760
Inventories 38,065 32,501
Trade and other receivables 19,292 12,261
Current tax 97 7,962
Cash and cash equivalents 8 86,147 111,091
Current assets 143,601 163,815
Non-Current Assets Classified as Held for Sale 2,869 4,947
Total assets 312,640 332,522
Equity
Share capital 1,882 1,891
Share premium 11,510 11,083
Treasury shares - (1,969)
Capital redemption reserve 12 -
Translation and other reserves 7,990 11,958
Retained earnings 158,477 136,025
Total Shareholders' funds 179,871 158,988
Liabilities
Financial liabilities 8 35,957 58,447
Post-employment benefit obligations 4,402 4,063
Deferred tax liabilities 7,202 8,566
Non-current liabilities 47,561 71,076
Financial liabilities 8 23,806 32,063
Provisions 1,306 1,884
Current tax 3,253 10,590
Trade and other payables 56,843 57,921
Current liabilities 85,208 102,458
Total equity and liabilities 312,640 332,522
The accompanying notes form an integral part of these condensed consolidated
financial statements.
The accounts were approved by the Board on 21 February 2025 and signed on its
behalf by:
Serge Crasnianski
John Lewis
Chief Executive Officer
Non-executive Chairman
Registration number: 00735438
Group Statement of Cash Flows for the 12 months ending 31 October 2024
12 months ended 12 months ended
31 October
31 October
2024 2023
(restated)
£'000 £'000
Cash flow from operating activities
Profit before tax 73,421 67,067
Finance costs 1,046 1,286
Interest of lease liabilities 1,575 1,251
Finance income (670) (1,401)
Non-operating income - net (982) (701)
Operating profit 74,390 67,502
Amortisation and impairment of intangible assets 7,425 6,586
Depreciation of property, plant and equipment net of reversal of 32,409 32,552
impairments
Loss on sale property, plant and equipment and intangible assets 263 555
Exchange differences 1,081 (129)
Non-cash movements in provisions and post-employment benefit obligations 541 1,243
Share based compensation charge 795 345
Other non cash items 268 (378)
Changes in working capital:
Inventories (5,564) (7,010)
Trade and other receivables (3,099) 2,975
Trade and other payables (1,078) 5,673
Cash generated from operations 107,431 109,914
Payments made in respect of provisions and post-employment benefit (796) (881)
obligations
Interest paid (2,621) (2,537)
Interest received 670 1,401
Taxation paid (17,518) (20,203)
Net cash generated from operating activities 87,166 87,693
Cash flows from investing activities
Acquisition of subsidiaries - (4,790)
Net proceeds from disposal of subsidiaries 3,673 209
Purchase of intangible assets (2,511) (3,798)
Purchase of property, plant and equipment (52,103) (45,842)
Capital expenditure on non-current assets classified as held for sale - (4,362)
Proceeds from sale of property, plant and equipment 1,523 1,539
Proceeds from sale of non-current assets classified as held for sale 1,852 -
Net cash utilised in investing activities (47,566) (57,044)
Cash flows from financing activities
Issue of ordinary shares to equity shareholders 430 458
Purchase of treasury shares (1,425) (1,969)
Repayment of principal of leases (5,932) (5,857)
Repayment of borrowings (27,049) (30,961)
New borrowings drawn 1,152 4,817
Dividends paid to owners of the Parent (27,842) (23,443)
Net cash utilised in financing activities (60,666) (56,955)
Net decrease in cash and cash equivalents (21,067) (26,304)
Cash and cash equivalents at beginning of year 111,091 136,185
Exchange gain on cash and cash equivalents (3,877) 1,210
Cash and cash equivalents at end of year 86,147 111,091
The accompanying notes form an integral part of these condensed consolidated
financial statements.
Group Statement of Changes in Equity for the 12 months ending 31 October 2024
Share Share Treasury Capital Other Translation Retained Total
£'000
capital premium shares Redemption reserves reserve earnings
£'000
£'000
£'000
£'000 Reserve £'000 £'000
£'000
At 1 November 2022 1,889 10,627 - - 2,665 8,494 108,974 132,649
Profit for the period - - - - - - 50,666 50,666
Other comprehensive income / (expense):
Exchange differences - - - - - 454 - 454
Remeasurement losses in defined benefit pension scheme and other - - - - - - (220) (220)
post-employment benefit obligations
Deferred tax on remeasurement losses - - - - - - 48 48
Total other comprehensive income / (expense) - - - - - 454 (172) 282
Total comprehensive income - - - - - 454 50,494 50,948
Transactions with owners of the Parent:
Shares issued in the period 2 456 - - - - - 458
Purchase of treasury shares - - (1,969) - - - - (1,969)
Share options - - - - 345 - - 345
Dividends - - - - - - (23,443) (23,443)
Total transactions with owners of the Parent 2 456 (1,969) - 345 - (23,443) (24,609)
At 31 October 2023 1,891 11,083 (1,969) - 3,010 8,948 136,025 158,988
At 1 November 2023 1,891 11,083 (1,969) - 3,010 8,948 136,025 158,988
Profit for the period - - - - - - 54,090 54,090
Other comprehensive income / (expense):
Exchange differences - - - - - (4,839) - (4,839)
Translation reserve taken to income statement on disposal of subsidiaries - - - - - 76 - 76
Remeasurement losses in defined benefit pension scheme and other - - - - - - (520) (520)
post-employment benefit obligations
Deferred tax on remeasurement losses - - - - - - 118 118
Total other comprehensive expense - - - - - (4,763) (402) (5,165)
Total comprehensive expense / (income) - - - - - (4,763) 53,688 48,925
Transactions with owners of the Parent:
Shares issued in the period 3 427 - - - - - 430
Purchase of treasury shares - - (1,425) - - - - (1,425)
Cancellation of treasury shares (12) - 3,394 12 - - (3,394) -
Share options - - - - 795 - - 795
Dividends - - - - - - (27,842) (27,842)
Total transactions with owners of the Parent (9) 427 1,969 12 795 - (31,236) (28,042)
At 31 October 2024 1,882 11,510 - 12 3,805 4,185 158,477 179,871
The accompanying notes form an integral part of these condensed consolidated
financial statements.
NOTES
1. General information
Me Group International plc (the "Company") is a public limited company
incorporated and registered in England and Wales and whose shares are quoted
on the London Stock Exchange, under the symbol MEGP. The registered number of
the Company is 735438 and its registered office is at Unit 3B, Blenheim Rd,
Epsom, KT19 9AP.
The principal activities of the Group continue to be the operation, sale, and
servicing of a wide range of instant-service equipment. The Group operates
coin-operated automatic photobooths for identification and fun purposes, and a
diverse range of vending equipment, including digital photo kiosks, laundry
machines, and business service equipment, and amusement machines.
Abridged financial information
The financial information in this announcement, which was approved by the
Board of Directors, does not constitute the Company's statutory accounts for
the years ended 31 October 2024 or 31 October 2023. The financial information
for 2023 is derived from the statutory accounts for that year, which have been
delivered to the Registrar of Companies. The auditors have reported on those
accounts; their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain statements under s498(2) or (3)
Companies Act 2006.
The audit of the statutory accounts for the year ended 31 October 2024 is
complete. The Group and the Company financial statements of Me Group
International plc (the "Company") for the period ended 31 October 2024 were
authorised for issue by the Directors on 21 February 2025 and the statements
of financial position were signed by Mr Serge Crasnianski, Chief Executive
Officer and Sir John Lewis OBE, Non-executive Chairman.
2. Basis of preparation and accounting policies
This annual results announcement has been prepared in accordance with
UK-adopted international accounting standards ("IFRS") and in conformity with
the requirements of the Companies Act 2006.
Whilst the financial information included in this annual results announcement
has been prepared in accordance with IFRS, this announcement does not itself
contain sufficient information to comply with IFRS. This annual results
announcement constitutes a dissemination announcement in accordance with
Section 6.3 of the Disclosures and Transparency Rules (DTR).
3. Segmental analysis
IFRS 8 requires operating segments to be identified based on information
presented to the Chief Operating Decision Maker (CODM) in order to allocate
resources to the segments and monitor performance. For ME Group the Board is
considered to be the CODM. The Group reports its segments on a geographical
basis: Continental Europe, United Kingdom & Ireland and Asia Pacific.
Individual operating companies are aggregated into the three geographic
segments. The Board believe that the similar economic characteristics of the
operating companies, together with the fact that they are similar in terms of
operations, use common systems and the nature of the regulatory environment
allow them to be aggregated into geographic reporting segments.
The key segmental performance indicators considered by the CODM are revenue
and operating profit.
Segmental results are reported before intra-group transfer pricing charges.
The following tables provide analysis of performance by geographic segment:
Continental United Kingdom Asia
Europe & Ireland Pacific Corporate Total
31 October 2024 £'000 £'000 £'000 £'000 £'000
Photo.ME 111,646 19,288 42,296 - 173,230
Wash.ME 64,084 27,207 166 - 91,457
Print.ME 10,657 116 85 - 10,858
Other Vending (including Feed.ME) 1,889 1,587 6,426 - 9,902
Total Vending Revenue 188,276 48,198 48,973 - 285,447
Sales of equipment, spare parts, consumables 17,406 841 378 - 18,625
Sales of services 3,305 150 360 - 3,815
Total Revenue 208,987 49,188 49,711 - 307,886
EBITDA 94,490 19,205 10,979 (10,450) 114,224
Depreciation and amortisation (27,000) (6,482) (5,327) (392) (39,201)
(Impairment) / reversal of impairment 585 312 (1,530) - (633)
Operating profit / (loss) 68,075 13,035 4,122 (10,842) 74,390
Operating profit 74,390
Non operating income - net 982
Finance income 670
Finance costs (2,621)
Profit before tax 73,421
Tax (19,331)
Profit for the period 54,090
Capital expenditure (excluding Right of Use assets) 38,582 12,764 2,487 781 54,614
Non-current assets 108,727 32,265 23,667 1,511 166,170
Continental United Kingdom Asia
Europe & Ireland Pacific Corporate Total
(restated) (restated) (restated) (restated)
31 October 2023 £'000 £'000 £'000 £'000 £'000
Photo.ME 114,297 21,624 36,573 - 172,494
Wash.ME 53,454 23,539 251 - 77,244
Print.ME 11,147 122 65 - 11,334
Other Vending (including Feed.ME) 2,179 1,757 6,653 - 10,589
Total Vending Revenue 181,077 47,042 43,542 - 271,661
Sales of equipment, spare parts, consumables 20,441 966 386 - 21,793
Sales of services 3,639 165 404 - 4,208
Total Revenue 205,157 48,173 44,332 - 297,662
EBITDA 90,109 18,545 9,475 (11,490) 106,639
Depreciation and amortisation (26,079) (6,785) (5,126) (355) (38,345)
(Impairment) / reversal of impairment (1,395) 639 (37) - (793)
Operating profit / (loss) 62,635 12,399 4,312 (11,844) 67,502
Operating profit 67,502
Non operating income - net 701
Finance income 1,401
Finance costs (2,537)
Profit before tax 67,067
Tax (16,401)
Profit for the period 50,666
Capital expenditure (excluding Right of Use assets) 37,494 7,380 8,846 733 54,453
Non-current assets 107,994 26,508 28,134 1,124 163,760
The Parent Company is domiciled in the UK.
There were no major customers, defined as a single customer contributing at
least 10% of the Group's revenue, in the period ended 31 October 2024 (2023:
none).
4. Taxation expenses
Tax charges/(credits) in the statement of comprehensive income:
31 October 31 October
2024 2023
£'000 £'000
Taxation
Current taxation
UK Corporation tax
- current period 10,081 9,833
- prior periods (156) (1,068)
9,925 8,765
Overseas taxation
- current period 7,702 6,916
- prior periods 125 (212)
7,827 6,704
Total current taxation 17,752 15,469
Deferred taxation
Origination and reversal of temporary differences
- current period - UK 2,239 677
- current period - overseas (803) (663)
Adjustments in respect of prior periods - UK 143 843
Impact of change in rate - 75
Total deferred tax 1,579 932
Tax charge in the income statement 19,331 16,401
Tax relating to items (credited)/charged to other components of comprehensive
income
Corporation tax - -
Deferred tax (118) (48)
Tax charge in other comprehensive income (118) (48)
Total tax charge in the statement of comprehensive income 19,213 16,353
The Group tax charge of £19.3m (2023: £16.4m) corresponds to an effective
tax rate of 26.3% (2023: 24.5%).
The UK Corporation Tax rate increased from 19% to 25% with effect from 1 April
2023. The weighted average UK Corporation Tax rate for the prior year ended 31
October 2023 was 22.5%.
The Group undertakes business in multiple tax jurisdictions.
5. Dividends paid and proposed
31 October 31 October
2024 2023
£'000 £'000
Declared and paid during the year
Final dividend for 2023: 4.42p (2022: 3.00p) 16,640 11,345
Interim dividend for 2023: 2.97p (2022: 2.60p) 11,202 9,829
Special dividend for 2023: Nil (2022: 0.60p) - 2,269
27,842 23,443
Declared but paid after the year end
Interim dividend for 2024: 3.45p (2023: 2.97p) 12,998 11,202
12,998 11,202
Proposed for approval by shareholders at the AGM
(Not recognised as a liability at 31 October)
Final dividend for 2024: 4,45p (2023: 4.42p) 16,751 16,640
16,751 16,640
Declared and paid during the year
The Board proposed a final dividend of 4.42p per ordinary share in respect of
the year ended 31 October 2023, which was approved by shareholders at the
Annual General Meeting held on 26 April 2024 and paid on 23 May 2024.
The Board approved an interim dividend of 2.97p per ordinary share for the six
month period ended 30 April 2023, at its 11 July 2023 meeting. The interim
dividend was paid on 23 November 2023.
Declared but paid after the year end
The Board approved an interim dividend of 3.45p per ordinary share for the six
month period ended 30 April 2024, at its 12 July 2024 meeting. The interim
dividend was paid on 29 November 2024.
Proposed for approval by shareholders at the AGM
The Board proposed a final dividend of 4.45p per ordinary share in respect of
the year ended 31 October 2024. Subject to approval by shareholders at the
Annual General Meeting on 25 April 2025, the final dividend will be paid on 23
May 2025.
6. Earnings per share
Basic earnings per share amounts are calculated by dividing net earnings
attributable to shareholders of the Parent of £54,090,000 (2023:
£50,666,000) by the weighted average number of shares in issue during the
period.
Diluted earnings per share amounts are calculated by dividing the net earnings
attributable to shareholders of the Parent by the weighted average number of
shares outstanding during the period plus the weighted average number of
shares that would be issued on conversion of all the dilutive potential shares
into shares. The Group has only one category of dilutive potential shares
being share options granted to senior staff, including directors.
The earnings and weighted average number of shares used in the calculation are
set out in the table below:
31 October 2024 31 October 2023
Weighted Weighted
average Earnings average Earnings
number per share number per share
Earnings of shares pence Earnings of shares pence
£'000 '000 £'000 '000
Basic earnings per share 54,090 376,605 14.36 50,666 378,110 13.40
Effect of dilutive share options - 2,566 (0.09) - 2,490 (0.09)
Diluted earnings per share 54,090 379,171 14.27 50,666 380,600 13.31
7. Non-current assets: Goodwill, other intangibles and property, plant and
equipment
Goodwill Other Intangible Property, plant &
assets Equipment
£'000 £'000 £'000
Net book value at 31 October 2022 16,320 20,218 101,090
Exchange adjustment 1 (176) 628
Additions - photobooths & vending machines - - 39,122
Additions - other assets - 3,798 6,720
Additions - right of use assets - - 3,516
Additions - new subsidaries 3,268 49 1,496
Transfers - (121) 121
Amortisation / Depreciation - (4,440) (33,889)
(Impairment) / Reversal of impairment (701) (1,445) 1,353
Disposals at net book value - (61) (2,033)
Net book value at 31 October 2023 18,888 17,822 118,124
Purchase price allocation adjustment (2,999) 4,140 -
Net book value at 1 November 2023 15,889 21,962 118,124
Exchange adjustment (512) (603) (3,856)
Additions - photobooths & vending machines - - 45,878
Additions - other assets - 2,511 6,225
Additions - right of use assets - - 4,237
Amortisation / Depreciation - (5,084) (34,077)
(Impairment) / Reversal of impairment (1,014) (1,287) 1,668
Disposal of subsidiary (3,357) (3,100) (118)
Disposals at net book value - (38) (1,749)
Net book value at 31 October 2024 11,006 14,362 136,332
8. Net cash
31 October 31 October
2024 2023
£'000 £'000
Cash and cash equivalents per statement of financial position 86,147 111,091
Non-current borrowings (28,547) (50,137)
Current borrowings (19,398) (27,037)
Net Cash 38,202 33,917
Net cash is a non-GAAP measure since it is not defined in accordance with IFRS
but is a key indicator used by management in assessing operational performance
and financial position strength. The inclusion of items in net cash as defined
by the Group may not be comparable with other companies' measurement of net
cash/debt. The Group defines net cash as cash and cash equivalents less
current and non-current borrowings outstanding, excluding lease liabilities of
£11,819,000 (2023: £13,336,000).
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF FINANCIAL REPORT
The Directors of the Company are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for the
Group and the Company for each financial year. Under that law, the Directors
are required to prepare the Group financial statements in accordance with
UK-adopted international accounting standards and applicable law and have
elected to prepare the Company's financial statements on the same basis.
Under company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and the Company and of their respective profit or loss
for that period. In preparing each of the Group and the Company's financial
statements, the Directors are required to:
■ Select suitable accounting policies and then apply them
consistently;
■ Make judgments and accounting estimates that are reasonable and
prudent;
■ State whether they have been prepared in accordance with
UK-adopted international accounting standards, subject to any material
departures disclosed and explained in the Group and Company financial
statements respectively; and
■ Prepare the financial statements on the going-concern basis
unless it is inappropriate to presume that the Group and the Parent Company
will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and the
Group and enable them to ensure that their financial statements and the
Directors' Remuneration Report comply with the Companies Act 2006 and as
regards the Group's financial statements, Article 4 of the IAS Regulation.
The Directors have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors' Report, Directors' Remuneration
Report and Corporate Governance Statement that comply with that law and those
regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Responsibility Statement of the Directors in respect of the annual financial report
Each of the Directors of the Company, confirms that, to the best of his or her
knowledge:
■ The financial statements, which have been prepared in accordance
with UK-adopted international accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation taken as a whole;
and
■ The Strategic Report and Report of Directors in the Annual
Report include a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
Fair, balanced and understandable
In accordance with the principles of the UK Corporate Governance Code, the
Directors have arrangements in place to ensure that the information presented
in the Annual Report is fair, balanced and understandable.
The Board considers, on the advice of its Audit Committee, that the Annual
Report, taken as a whole, is fair, balanced and understandable, and provides
the information necessary for shareholders to assess the Company's and the
Group's position and performance, business model and strategy.
By order of the Board
Sir John Lewis OBE (Non-executive Chairman)
Serge Crasnianski (Chief Executive Officer and Deputy Chairman)
24 February 2025
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