UK's ME Group H1 profit falls on lower photobooth activity
UK's ME Group H1 profit falls on lower photobooth activity
Overview
UK instant-service equipment operator's H1 revenue rose 0.3% yr/yr to £154.3 mln
Diluted EPS fell 3.9% yr/yr, profit before tax down 3.8%
Growth driven by laundry operations; photobooth activity declined in some markets
Outlook
ME Group expects FY 2026 profit before tax between £69 mln and £74 mln
Company targets c.1,300 laundry machine installations in FY 2026
ME Group sees return to normal trading patterns in H2 2026
Result Drivers
LAUNDRY EXPANSION - Strong growth in laundry operations, with Wash.ME vending revenue up 16.3% and 499 net new machines installed, was a key driver of H1 results
PHOTOBOOTH DECLINE - Photobooth revenue fell 6.2%, mainly due to regulatory changes in Germany and reduced demand in some markets, particularly in April
EQUIPMENT SALES DROP - Revenue from equipment sales fell 14.2% as the company prioritized operating higher-margin instant-service equipment over equipment sales
Company press release: ID:nRSM9753La
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 154.30 mln |
|
H1 Pretax Profit |
| GBP 32.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for ME Group International PLC is GBp210.00, about 103.1% above its July 10 closing price of GBp103.40
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)