REG - ME Group Intl. - Year-end Trading Update

ME InternationalAnnouncement

04/12/2024 07:00

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RNS Number : 6886O  ME Group International PLC  04 December 2024

 

4 December 2024

 

 

ME GROUP INTERNATIONAL PLC

("ME Group", the "Company" or the "Group")

 

Year-end Trading Update

Another year of record profitability

 

ME Group International plc (LSE: MEGP), the instant-service equipment group,
announces a post-year end trading update for the 12 months ended 31 October
2024 ("FY 2024").

 

Trading Update

 

Building on the positive trading momentum throughout H1 2024, the Group is
pleased to report continued growth in H2 2024. As a result, the Board expects
to report that FY 2024 will be another year of record profit and financial
performance in line with the Board's expectations.

 

Year-on-year the Group expects reported revenue to be not less than £308
million, up c.3% for FY 2024, and up c.7% to not less than £318 million
excluding the previously announced FX impacts(1). Adjusted EBITDA is expected
to be not less than £112 million, up c.5% (up c.9% to not less than £116
million excluding FX impact(1)) and Profit Before Tax is expected to be not
less than £73 million, up more than 10% (not less than £75 million excluding
FX impact(1)).

 

Wash.ME Revolution laundry operations were the key growth driver in the year,
with net revenue up c.19% (c.21% excluding FX impact(1)) compared with FY
2023. In total a record 1,111 machines (including 211 relocations) were
installed across key regions including France and the UK, in line with the
Group's target of 80-90 laundry machine installations per month.

 

The Group's photobooth operations were stable and performed as expected. This
business remained highly cash-generative with Photo.ME revenue up c.0.4% (up
c.4.4% excluding FX impact(1)). The Group continued to rollout its
next-generation photobooths mainly in France. While the rate of deployment of
these machines was slightly slower than expected, partly due to some technical
issues, the Group continued to make progress with its rollout programme.

 

(1) Excluding the Impact from foreign exchange rates ("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 Position

 

The Group remains highly cash-generative, well-capitalised, and in a strong
financial position. As at 31 October 2024, the Group had a gross cash position
of £86.1 million (FY 2023: £111.1 million). The Group made loan repayments
of c.£27 million, invested c.£53 million in Capex, and paid £28 million in
dividends to shareholders in 2024. The Group's net cash position was £38.2
million, excluding investments and convertible bonds (FY 2023: £33.9
million), after delivering on its policy of returning cash to shareholders
through dividend payments.

 

2024 Annual Results

 

The Group expects to publish its Annual Results for the financial year ended
31 October 2024 in mid-February 2025.

 

 

ENQUIRIES:

 

 ME Group International plc                     +44 (0) 1372 453 399
 Stéphane Gibon, CFO                            ir@me-group.com (mailto: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 (mailto:me-group@hudsonsandler.com)

 

 

NOTES TO EDITORS

 

ME Group International plc (LSE: MEGP) operates, sells and services a wide
range of instant-service vending equipment, primarily aimed at the consumer
market.

 

The Group operates vending units across 18 countries and its technological
innovation is focused on four principal areas:

 

·    Photo.ME        - Photobooths and integrated biometric
identification solutions

·    Wash.ME        - Unattended laundry services and launderettes

·    Print.ME          - High-quality digital printing kiosks

·    Feed.ME         - Vending equipment for the food service market

 

In addition, the Group operates other vending equipment such as children's
rides, amusement machines, and business service equipment.

 

Whilst the Group both sells and services this equipment, the majority of units
are owned, operated and maintained by the Group. The Group pays the site owner
a commission based on turnover, which varies depending on the country,
location and the type of machine.

 

The Group has built long-term relationships with major site owners and its
equipment is generally sited in prime locations in areas of high footfall such
as supermarkets, shopping malls (indoors and outdoors), transport hubs, and
administration buildings (City Halls, Police etc.). Equipment is maintained
and serviced by an established network of more than 650 field engineers.

 

In August 2022 the Company changed its listed entity name to ME Group
International plc (previously Photo-Me International plc) to better reflect
the Group's diversification focus and business strategy.

 

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)

 

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