REG - ME Group Intl. - Interim Results
Tue 07:00
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RNS Number : 9537R ME Group International PLC 22 July 2025
22 July 2025
ME GROUP INTERNATIONAL PLC
("ME Group", "the Group" or "the Company")
Interim Results for the six months ended 30 April 2025
Record H1 Group profitability
ME Group International plc (LSE: MEGP), the instant-service equipment group,
announces its results for the six months ended 30 April 2025 (the "Period" or
"H1 2025").
KEY FINANCIALS
H1 2025 H1 2024(4)
Reported Constant Currency(3) Reported
Revenue £153.8m £157.4m £150.4m
EBITDA(1) £53.2m £54.5m £51.2m
Profit before tax £34.0m £34.9m £30.0m
Cash generated from operations £47.6m n/a £41.7m
Gross cash £74.9m £74.7m £82.7m
Net cash(2) £36.2m £35.9m £21.7m
Earnings per share (diluted) 6.74p 6.97p 5.97p
Interim Dividend per ordinary share 3.85p n/a 3.45p
( )
(1 ) EBITDA is profit before depreciation, amortisation, non-operating
income/expense and finance cost and income.
(2 ) Net cash excludes lease liabilities of £9.7 million. Refer to note 12
for the reconciliation of net cash to cash and cash equivalents per the
financial statements
(3) Constant currency is H1 2025 results translated using the prior year
foreign exchange rates. This excludes the impact from foreign exchange rate
movements ("FX impact") over the past 12 months, particularly the Japanese yen
which saw a 2.7% decrease in value against pound sterling (average rate of
exchange used in H1 2025 was yen/£ 192.67 vs H1 2024 yen/£187.60), and a
2.7% decrease in the euro against pound sterling (average rate of exchange
used in H1 2025 was €/£1.194 vs H1 2024 1.163)
(4) Six months ended 30 April 2024.
H1 HIGHLIGHTS
· Strong first-half performance, delivering revenue up 2.3% (up 4.7%
at constant currency(3)), EBITDA up 3.9% (up 6.4% at constant currency(3)),
and profit before tax growth of 13.3% (up 16.3% at constant currency(3)).
· Performance driven by total laundry operations which saw revenue
increase by 17.7% to £51.9 million, with Revolution vending revenue up
13.3% to £46.7 million (up 15.8% at constant currency).
· The Group's EBITDA margin increased by 0.5 ppts to 34.6% and profit
before tax margin increased by 2.2 ppts to 22.1%, reflecting the strong focus
on disciplined cost control and operational leverage of the Group.
· Further strategic progress made on growth strategy, with net 523
Revolution units deployed in H1 2025 and the Group remains on track to install
a total of 1,200 net Revolution units and 3,200 next-generation photobooths in
2025.
· Cash generated from operations grew by 14.1% to £47.6 million,
further enhancing the Group's strong balance sheet, with gross cash of £74.9
million and net cash(2) of £36.2 million at the period end. The Group made
loan repayments totalling £11.0 million in H1 2025.
· Diluted earnings per ordinary share up 12.8% to 6.74 pence,
reflecting the Group's commitment to enhance returns for all shareholders.
· Interim dividend up 11.6% to 3.85 pence per Ordinary Share (H1
2024: 3.45 pence), which will return £14.5 million to shareholders. The Group
remains committed to paying more than 55% of annual profits after tax to
shareholders.
OUTLOOK
· H1 2025 saw further strategic progress and profit growth in the
period, despite a backdrop of broader challenging global markets.
· The Group remains focused on delivering in line with its long-term
strategy to grow its core laundry and photobooths activities, leveraging its
key strengths and significant competitive advantage.
· ME Group remains on track to deliver FY 2025 profit performance in
line with expectations, with another year of record profitability. The Board
continues to anticipate FY 2025 profit before tax will be between £76 million
and £80 million(1).
Serge Crasnianski, Chief Executive Officer (CEO) & Deputy Chairman,
commented:
"We are pleased to report record trading momentum in the first half, driven by
a strong performance from our rapidly growing laundry operations.
"The Group's predictable revenue streams and highly cash-generative
characteristics continue to support our strong balance sheet. We have a clear
growth strategy and competitive advantage. We leverage our R&D and market
expertise, alongside our disciplined financial approach, to grow our
photobooth and laundry activities and maximise return on capital, targeting a
rapid return on investment.
"The Board's expectations for FY 2025 are unchanged, and the Group remains
well-positioned for long-term success"
ENQUIRIES:
ME Group International plc +44 (0) 1372 453 399
Stéphane Gibon, CFO ir@me-group.com (mailto:ir@me-group.com)
Vlad Crasneanscki, Executive Director & Head of Investor Relations
Hudson Sandler +44 (0) 20 7796 4133
Wendy Baker / Nick Moore me-group@hudsonsandler.com (mailto:me-group@hudsonsandler.com)
1 This statement constitutes a profit forecast for the purposes of Rule 28.1
of the City Code on Takeovers and Mergers. Further information on the basis of
preparation of this profit forecast, including the principal assumptions on
which it is based, can be found in Appendix 1.
NOTES TO EDITORS
ME Group International plc (LSE: MEGP) is an international market leader in
automated self-service equipment aimed at the consumer market, with over
48,000 vending units currently in operation.
The Group operates, sells and services a wide range of instant-service vending
equipment across 16 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
I am pleased to report the Group delivered another excellent performance in
the first half of the financial year ("H1 2025") with record profitability,
led by a strong performance from Revolution laundry operations and further
expansion of this rapidly growing business area, alongside a solid performance
from our established and market-leading photobooth operations.
This resulted in H1 2025 Group revenue growth of 2.3%, EBITDA growth of 3.9%
and profit before tax growth of 13.3% compared with H1 2024. On a constant
currency(3) basis the Group's performance was even stronger, with Group
revenue and Group EBITDA up 4.7% and 6.4% respectively. Constant currency(3)
excludes the negative impact of foreign exchange rate headwinds, which saw the
value of the Japanese yen and the euro both 2.7% lower against the British
pound sterling, compared with H1 2024. Further details on the financial
performance are set out in the Chief Executive's Business and Financial Review
below.
Our growth strategy
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. This provides the foundations for executing
our growth strategy, which is primarily focused on the expansion of laundry
operations. The Group is focused on maximising its return on capital,
targeting a very quick return on investment on all new laundry and photobooth
machines. This disciplined approach and focus on driving cash returns enables
the Group to reinvest in its growth pillars.
We leverage our key strengths, which include long-standing partnerships with
site owners, to provide their customers with value-added self-service
convenience and an increase in the time customers dwell on site. We also have
a disciplined financial approach and a focus on driving production and
operational efficiency, enabling us to capitalise on operating leverage as we
grow our machine estate. These key strengths allow us to deliver a strong
performance against our targeted payback periods and return on capital,
exceeding the cost of capital.
Our success in diversifying our operations is proven through the evolving
business mix. Wash.ME laundry activities now account for 33.5% of Group
vending revenue and 47.7% of Group EBITDA, compared with 18.3% and 23.4% in
2019.
Innovation, supported by our in-house R&D team, remains at the heart of
the Group. We refresh existing machine services and identify and develop new
automated services to keep pace with ever-changing consumer demand. The most
recent addition to our machine portfolio was the launch of our new Kee.ME
automated key-cutting service, with the trial of three machines in France,
which has produced promising results and high levels of customer interest.
The Board
On 3 June, post the period end, the Group was pleased to announce two
appointments to the Board of Directors, which further broaden and enhance the
skillset and experience of the Board.
Vladimir Crasneanscki was appointed Executive Director. Mr Crasneanscki will
continue to be responsible for managing the business in the UK as well as Head
of Investor Relations, a role he has held since January 2024.
Gregory Barker, Lord Barker of Battle, joined the Board as an independent
Non-executive Director. Lord Barker, who began his career as an equity
analyst, has served on numerous boards of both listed and private companies
during his career. He is currently Chairman of the EV Network, and he serves
on the boards of GlassView, the Clean Growth Leadership Network. He also
chairs the advisory board of PowerHive.
The Board is delighted to be working closely with Vladimir and Lord Barker.
The Board has worked hard to evolve its composition and believes it has a
strong team in place to continue supporting the Group's execution of its
long-term growth strategy.
Earnings and Dividend
Diluted earnings per share increased by 12.8% to 6.74 pence per share, which
reflected the Group's continued focus on delivering profitable growth.
The Company's dividend policy seeks to pay annual dividends of more than 55%
of annual profits after tax, subject to market and capital requirements.
The Board is pleased to declare an interim dividend of 3.85 pence per Ordinary
Share (H1 2024: 3.45 pence per Ordinary Share), an increase of 11.6%, which
will return £14.5 million to shareholders. The dividend will be paid on 28
November 2025 to shareholders on the register on 7 November 2025. The
ex-dividend date will be 6 November 2025.
Looking ahead
Despite the background of challenging global markets, the Group has delivered
record profitability in the first half of the financial year while also making
good strategic progress, particularly the continued successful expansion of
laundry operations.
Laundry operations continue to deliver significant growth for the Group.
Whilst the photobooth revenue performance was slightly lower than expected due
to a printer supplier issue, this issue was resolved in the Period and had a
limited impact on Group profitability.
The Board remains focused on delivering against its long-term strategy to grow
its core photobooth and laundry activities, leveraging its significant
competitive advantage. Historically, the Group's performance is second-half
weighted, and the Board continues to expect that FY 2025 profit before tax
will be between £76 million and £80 million. The Board believes the Group is
well-positioned for long-term success.
Sir John Lewis OBE
Non-executive Chairman
CHIEF EXECUTIVE'S BUSINESS AND FINANCIAL REVIEW
Financial performance
We are pleased to report that the record trading momentum seen in the last
financial year continued in the first half of the financial year, driven by a
strong performance from our rapidly growing laundry operations.
Reported Group revenue for H1 2025 was £153.8 million (H1 2024: £150.4
million), an increase of 2.3% (up 4.7% at constant currency(3)). Excluding the
H1 2024 contribution from SEMPA SAS, which was sold in May 2024, revenue was
3.5% higher (up 5.9% at constant currency(3)).
Reported Group EBITDA increased by 3.9% to £53.2 million (H1 2024: £51.2
million), which delivered an improved Group EBITDA margin of 34.6%, up 0.5
ppts (H1 2024: 34.1%). At constant currency(3), Group EBITDA increased by
6.4%.
Our Wash.ME laundry business remained the key growth driver for the Group,
with strong demand across all our geographies. Total laundry revenue grew
significantly to £51.9 million (H1 2024: £44.1 million), an increase of
17.7% (up 20.2% at constant currency(3)). Total laundry EBITDA increased to
£25.4 million (H1 2024: £21.1 million), an increase of 20.4% (up 22.7% at
constant currency(3)). Vending revenue from Revolution laundry machines
increased to £46.7 million (H1 2024: £41.2 million), an increase of 13.3%
(up 15.8% at constant currency(3)).
The revenue performance of our photobooth business was impacted by a technical
issue with the new printers installed in some photobooths. This issue was
resolved in April, however, it had an estimated 2.0% negative impact on
photobooth revenue in H1 2025. Consequently, Photo.ME vending revenue was 3.7%
lower at £82.7 million (down 1.4% at constant currency(3)). Despite this,
Photo.ME EBITDA increased by 1.0% to £29.6 million (up 3.4% at constant
currency(3)). Since the issue was fixed, the business has returned to growth,
and we expect the business to be in growth for the full year.
Continental Europe delivered the strongest performance both in terms of
revenue, up 3.8% to £102.0 million (up 6.4% at constant currency(3)), and
operating profit was up 22.4% (up 25.7% at constant currency(3)) at £25.7
million. In the UK and the Republic of Ireland, revenue improved to
£26.1 million, an increase of 1.6% (2.3% at constant currency(3)) and
operating profit was 8.3% higher (up 9.7% at constant currency(3)) at £7.8
million. While revenue in Asia Pacific declined by 2.7% to £25.7 million (up
0.4% at constant currency(3)), operating profit improved 18.2% to £3.9
million (up 21.2% at constant currency(3)). Further detail is set out in the
Review of Performance by Geography below.
Reported Group profit before tax was up 13.3% at £34.0 million (H1 2024:
£30.0 million), with the Group benefiting from operational leverage as the
number of machines in operation increased. Profit before tax margin improved
by 2.2 ppts to 22.1%. Profit after tax increased by 13.3% to £25.6 million
(H1 2024: £22.6 million). At constant currency(3), profit before tax
increased by 16.3% and profit after tax increased by 17.3%.
In March 2025, the Group completed a small acquisition of a photo ID
competitor in Belgium, which added an additional 116 photobooths to its
portfolio, all of which were profitable in the prior year. This further
demonstrates delivery of the Group's growth strategy through expansion in
existing and new geographic territories. The acquisition was funded via the
Group's cash balances.
The Group is highly cash generative, with cash generated from operations up
14.1% to £47.6 million (H1 2024: £41.7 million). We continue to reinvest
cash generated from operations to support our growth strategy, focused on our
two core activities of photobooth and laundry services. As a result, total
capital expenditure was £28.8 million (H1 2024: £26.6 million), primarily
related to laundry (£14.4 million), photobooths (£5.7 million), Kiosks
(£3.3 million) and site installation and groundworks (£2.5 million).
Financial position
The Group's predictable revenue streams and highly cash-generative
characteristics continue to support its strong balance sheet.
As at 30 April 2025, the Group had gross cash of £74.9 million, down £7.8
million (9.4%) compared with H1 2024 (£82.7 million). However, the net cash
balance improved by £14.5 million, up 66.8%, to £36.2 million (H1 2024:
£21.7 million). In H1 2025, the Group made loan repayments totalling £11.0
million (H1 2024: £14.9 million) and continued to invest in its growth
strategy.
In the 12 months ended 30 April 2025, the Group returned £29.6 million to
shareholders through dividend payments. The Group remains in a strong
financial position with good liquidity to fund its future growth strategy.
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)
Six months ended Six months ended
30 April 2025
30 April 2024
Number of units in operation 30,557 30,708
Percentage of total group vending estate (number of units) 62.9% 64.0%
Vending revenue(1) £82.7m £85.9m
Capex £5.7m £9.0m
EBITDA £29.6m £29.3m
( )
(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.
The Group's photobooth operations remain the largest business area by number
of machines, revenue and EBITDA contribution. The Group operates photobooth
machines in 16 countries.
Vending revenue(1) was down 3.7% (down 1.4% at constant currency(3)) to
£82.7 million (H1 2024: £85.9 million). This was primarily due to the
supplier printer issue, which was estimated to have had a 2.0% negative impact
on photobooth vending revenue in H1 2025. Photobooths contributed 53.8% of
Group revenue.
The average revenue per photobooth (excluding VAT) was £2,704, down 3.3%
compared with H1 2024 at £2,795). Although on a constant currency(3) basis,
average revenue per machine was 0.9% lower. This decline was due to the
printer issue. The demand for photobooth services remained stable.
Capex was £5.7 million (H1 2024: £9.0 million) as the Group progressed with
its rollout of next- generation photobooths and the upgrading and replacement
of older machines, albeit this was slower than expected owing to the printer
issue. The Group plans to install a total of 3,200 next-generation photobooths
in FY 2025.
EBITDA was £29.6 million (H1 2024: £29.3 million), an increase of 1.0%.
EBITDA margin was 35.8% (H1 2024: 34.1%). Photobooth EBITDA represented 55.6%
of Group EBITDA. At constant currency(3), EBITDA increased by 3.4%.
At 30 April 2025, the number of photobooths in operation reduced slightly by
0.5% to 30,557 units (H1 2024: 30,708), due to the removal of photobooths from
sites until April 2025, which followed the previously communicated end of a
contract in the UK. Photo.ME operations accounted for 62.9% of the Group's
total vending units, compared with 64.0% H1 2024, as the business mix
continues to evolve due to a rapid growth in laundry operations.
The Group continues to demonstrate its innovative approach, and during the
Period we launched a number of initiatives. This included a collaboration with
the Aston Martin F1 Team through our photobooth at North Greenwich Underground
Station, celebrating 75 years of Formula 1, and the launch of our AI image
offering across 500 next-generation Photomaton photobooths through a new
partnership with Paris Saint-Germain F.C. These partnerships further underpin
the Group's ability to leverage broader marketing opportunities to build
awareness in new market segments. In addition, the Group is consolidating its
position in the photobooth market through significant innovation in fun photo
products using AI.
Wash.ME - Unattended Revolution laundry services and launderettes (Core
business)
Six months ended Six months ended
30 April 2025
30 April 2024
Total Laundry units deployed (owned, sold and acquisitions) 8,528 7,317
Total revenue from Laundry operations(1) £51.9m £44.1m
Total Laundry EBITDA £25.4m £21.1m
Revolution
- Number of Revolutions in operation 6,956 5,957
- Percentage of total group vending estate (number of units) 14.3% 12.4%
- Vending revenue from Revolutions(2) £46.7m £41.2m
- Revolution capex £14.4m £12.0m
( )
(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.
( )
The Group's fastest growing business area by number of machines and EBITDA.
Total revenue from laundry operations(1) grew by 17.7% to £51.9 million (up
20.2% at constant currency). Laundry operations continued to grow strongly,
reflecting strong demand for laundry services alongside another period of
record expansion of Revolution laundry units. The total number of laundry
units deployed (owned, sold and acquired) increased by 16.6% year-on-year to
8,528 units at 30 April 2025.
Total Laundry EBITDA increased by 20.4% to £25.4 million (H1 2024 £21.1
million), which represented an EBITDA margin of 54.0% in H1 2025 (H1 2024:
50.6%). Total laundry operations contributed 47.7% to Group EBITDA.
Continued growth of Revolution laundry operations
In line with the Group's growth strategy, Revolution laundry operations grew
at pace, with a further 523 installations. As a result, the Group operated
6,956 machines, up 16.8%, as at 30 April 2025, and it represented 14.3% of
the Group's total vending estate, up from 12.4% in H1 2024.
Vending revenue(2) from Group-operated Revolution laundry machines increased
13.3% to £46.7 million (up 15.8% at constant currency). This growth was
supported by strong demand for rapid, large capacity laundry services from
consumers. Revolution laundry vending revenue represented 30.4% of total Group
revenue, up from 27.4% in H1 2024, as Revolution laundry operations continue
to become a larger contributor to Group performance.
The average revenue per machine (excluding VAT) was £6,976 (H1 2024: £7,171)
down 2.7% compared with H1 2024. At constant currency, average revenue per
machine (excluding VAT) was down 0.6%. The Group has undertaken a programme to
install extra machines at sites with exceptionally high demand to increase
capacity to match demand at peak times, such as weekends. Since May 2024,
additional machines have been installed at 232 high demand sites.
Subsequently, overall revenue has increased significantly, benefiting from the
increased capacity. However, the increase in the number of machines in these
locations has resulted in a decline in the average revenue per machine.
Capex increased by £2.4 million to £14.4 million, a 20% increase, which was
almost entirely invested in the deployment of new Revolution machines.
The Group remains focused on further establishing and expanding its strong
presence in the unattended laundry market and expects to be on track to
install a total of 1,200 net Revolution laundry machines across target
geographies during FY 2025.
Print.ME - High-quality digital printing service (Ancillary business)
Six months ended Six months ended
30 April 2025
30 April 2024
Number of units in operation 4,471 4,635
Percentage of total group vending estate (number of units) 9.2% 9.7%
Vending revenue(1) £5.4m £5.2m
Capex £3.3m £0.2m
EBITDA £2.3m £2.0m
(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.
Print.ME is an ancillary business that primarily operates digital printing
kiosks in France, where the majority of machines are located, and it has
operations in the UK and Switzerland.
Vending revenue(1) grew by 3.8% to £5.4 million (up 7.7% at constant
currency(3)). Print.ME represented a small contribution to Group revenue at
3.8%.
The performance benefited from the ongoing replacement of old model machines
with new Speedlab machines in France to refresh the portfolio and enhance
functionality and customer experience. In H1 2025, 422 old machines were
replaced with next-generation models, 203 underperforming machines were
removed, and 41 machines were installed in new locations. The result is a
slightly lower number of machines in operation but an increase in quality and
average revenue per machine. The average revenue per machine (excluding VAT)
increased by 8.1% to £1,200 (H1 2024: £1,110) and was up 12.1% at constant
currency(3).
As a result of the rollout of new Speedlab machines, capex increased to £3.3
million (H1 2024: £0.2 million).
EBITDA increased to £2.3 million (H1 2024: 2.0 million). Print.ME contributed
4.3% of Group EBITDA (H1 2024: 3.9%). EBITDA margin improved to 42.6% (H1
2024: 38.5%).
At 30 April 2025, the Group had 4,471 kiosks in operation, down 3.5% (H1 2024:
4,635). Print.ME kiosks accounted for 9.2% of the total number of vending
units in operation.
Other Vending - Amuse.ME, Copy.ME and Feed.ME (Ancillary business)
Six months ended Six months ended
30 April 2025
30 April 2024
Number of units in operation 6,579 6,611
Percentage of total group vending estate (number of units) 13.5% 13.8%
Vending revenue(1) £5.2m £5.0m
Revenue from the sale of equipment £8.6m £10.2m
Capex £0.6m £1.4m
EBITDA £6.4m £5.8m
(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.
As at 30 April 2025, the Group operated 6,579 other vending units (30 April
2024: 6,611). This included 2,368 children's rides (Amuse.ME), 3,347
photocopiers (Copy.ME), 487 freshly squeezed orange juice vending machines, 19
pizza kiosks (Feed.ME) and 358 other miscellaneous machines.
These machines are profitable ancillary services, typically operated in
high-footfall locations alongside the Group's core activities. This enables
the Group to leverage its established site owner relationships and benefit
from operating synergies. Feed.ME units are mostly situated in Japan and
Australia. The Group also sells pizza-vending equipment in Continental Europe
and the UK, albeit on a small scale, with 8 pizza machines sold in H1 2025.
Vending revenue(1) from Other Vending was £5.2m million (H1 2024: £5.0
million), an increase of 6.0%.
In addition, the Group earned £8.6 million in revenue from the sale of food
vending equipment and the sale of other equipment, spare parts, consumables
and services (H1 2024: £10.2 million). Excluding the H1 2024 contribution
from SEMPA SAS (sold in May 2024), revenue from the sale of equipment, spare
parts, consumables and services increased by 1.2%.
EBITDA improved 10.3% to £6.4 million, up 13.8% at constant currency(1).
Other Vending accounted for 13.5% of the Group's total vending estate by
number of machines, down 0.3% compared with the previous year, and represented
3.4% of the total Group revenue.
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 30 April 2025 At 30 April 2024 Year on Year
Number % of total Number % of total % Change in
of units estate of units estate Number of units
Continental Europe 27,425 56.4% 26,564 55.4% 3.2%
UK & Republic of Ireland 6,201 12.8% 6,357 13.3% (2.5)%
Asia Pacific 14,964 30.8% 15,024 31.3% (0.4)%
Total 48,590 100% 47,945 100% 1.3%
The total number of vending units in operation at 30 April 2025 increased
slightly, up 1.3% to 48,590 compared with the prior Period (H1 2024: 47,945),
driven by the ongoing expansion of laundry operations.
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
Six months ended Six months ended Year on Year
30 April 2025
30 April 2024
% change
Continental Europe £102.0m £98.3m 3.8%
UK & Republic of Ireland £26.1m £25.7m 1.6%
Asia Pacific £25.7m £26.4m (2.7)%
Total £153.8m £150.4m 2.3%
Analysis of Revenue by Geographic Region
Six months ended 30 April 2025 Continental United Kingdom Asia
Europe & Ireland Pacific Total
Photo.ME £51.8m £8.6m £22.3m £82.7m
Wash.ME £30.7m £16.3m £0.1m £47.1m
Print.ME £5.3m £0.1m - £5.4m
Other Vending (including Feed.ME) £1.2m £0.9m £3.1m £5.2m
Total vending revenue £89.0m £25.9m £25.5m £140.4m
Sales of equipment, spare parts, consumables & services £13.0m £0.2m £0.2m £13.4m
Total revenue £102.0m £26.1m £25.7m £153.8m
Six months ended 30 April 2024 Continental United Kingdom Asia
Europe & Ireland Pacific Total
Photo.ME £53.0m £10.3m £22.6m £85.9m
Wash.ME £27.6m £14.0m £0.1m £41.7m
Print.ME £5.1m £0.1m - £5.2m
Other Vending (including Feed.ME) £1.0m £0.8m £3.2m £5.0m
Total vending revenue £86.7m £25.2m £25.9m £137.8m
Sales of equipment, spare parts, consumables & services £11.6m £0.5m £0.5m £12.6m
Total revenue £98.3m £25.7m £26.4m £150.4m
Operating profit by geographic region
Six months ended Six months ended
30 April 2025
30 April 2024
Continental Europe £25.7m £21.0m
UK & Republic of Ireland £7.8m £7.2m
Asia Pacific £3.9m £3.3m
Corporate costs £(4.3)m £(1.2)m
Total £33.1m £30.3m
Continental Europe
Continental Europe, the Group's largest region by number of machines,
delivered the strongest growth in terms of both revenue and operating profit.
Approximately 76.1% of the machines in operation are located in France.
Revenue grew by 3.8% to £102.0 million (H1 2024: £98.3 million), and the
region increased its contribution to total Group revenue to 66.3%. There was a
foreign exchange movement impact on the reported performance, with a 2.7%
decline in the value of the euro against the British pound sterling compared
with H1 2024. At constant currency(3), revenue in the region was up 6.4%.
Vending revenue from Wash.ME operations performed particularly strongly, up
11.2%, and up 14.1% at constant currency(3). A further 350 Revolution laundry
machines were installed, bringing the total number of laundry machines in
operation to 5,130.
Photo.ME vending revenue declined by 2.3% due to the impact of the resolved
printer technical issue mentioned above. At constant currency(3), vending
revenue was marginally up at 0.4%. Print.ME delivered vending revenue growth
of 3.9% (up 7.8% at constant currency(3)), benefiting from the recent
installation of new SpeedLab printing kiosks in FY 2024.
We continue to work closely with our key customer accounts while maintaining
and building our established partnerships to identify opportunities for
further growth across our machine portfolio.
Operating profit increased significantly, up 22.4% to £25.7 million, in part
due to supplier compensation payment related to the technical issue with new
printers. At constant currency(3), operating profit was up 25.7%.
As at 30 April 2025, 27,425 machines were in operation, up 3.2%, which
represented 56.4% of the Group's total vending estate. The region contributed
66.3% to Group revenue and 74.4% to Group EBITDA.
UK & Republic of Ireland
Revenue grew by 1.6% to £26.1 million, driven by growth from laundry
operations. However, the vending revenue performance was impacted by currency
movements related to operations in the Republic of Ireland. At constant
currency(3), revenue increased 2.3%.
Wash.ME laundry operations performed strongly, with vending revenue growth of
16.4% (up 17.1% at constant currency(3)). Expansion of laundry operations is a
key growth driver and continued at pace, with a further 171 Revolution
machines installed in H1 2025. Major contracts are contributing to the growth,
with the Group now operating Wash.ME units at 159 Morrisons sites and 65 Motor
Fuel Group ("MFG") sites. In total, the Group operates 1,821 laundry machines
in the region, up 24.6% (H1 2024:: 1,462).
Photo.ME vending revenue was 16.5% lower. This is partly due to the previously
mentioned end of a contract, which led to lower revenue compared with H1 2024
and a lower number of machines in operation. However, due to the terms of
this contract, the impact on profit is limited.
Operating profit increased by 8.3% to £7.8 million, which reflected the
growth of the Group's high-margin laundry operations, and a focus on cost
efficiencies.
As at 30 April 2025, there were 6,201 units in operation in the region, 2.5%
lower than in H1 2024 due to the end of a contract last year. This represented
12.8% of the Group's total vending estate. The region contributed 17.0% to
Group revenue and 21.3% to Group EBITDA.
Asia Pacific
The Group primarily operates photobooths in the region, with most located in
Japan. In addition, it operates Other Vending such as amusement kiosks and
fresh fruit juice vending machines.
Revenue declined 2.7% to £25.7 million, due to adverse foreign currency
movement. At constant currency(3), revenue marginally increased by 0.4%.
Photo.ME vending revenue was 1.3% lower, although it was up 1.3% at constant
currency(3). The demand remained stable.
Vending revenue from Other Vending was flat compared with H1 2024. The Group
has continued to expand its freshly squeezed orange juice vending operations
in the region with 487 machines in operation (H1 2024: 475), operating across
Japan (396 machines) and Australia (91 machines).
Operating profit improved to £3.9 million, an increase of 18.2% (up 21.2% at
constant currency(3)).
As at 30 April 2025, there were 14,964 machines in operation, a reduction of
0.4%, which represented 30.8% of the Group's total units in operation. The
region contributed 16.7% to Group revenue and 11.9% to Group EBITDA.
Serge Crasnianski
Chief Executive Officer & Deputy Chairman
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.
Economic
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.
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 STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 April 2025
Unaudited Unaudited Audited
six months to six months to 12 months to
30 April 30 April 31 October
2025 2024 2024
Notes £ '000 £ '000 £ '000
Revenue 3 153,789 150,355 307,886
Cost of sales (101,741) (103,849) (198,394)
Gross profit 52,048 46,506 109,492
Other operating income 61 73 209
Administrative expenses (18,992) (16,188) (35,617)
(Impairment of trade receivables) / reversal of impairment (21) (116) 303
Share of post-tax profits from associates - - 3
Operating profit 3 33,096 30,275 74,390
Non-operating income - net 4 1,963 133 982
Finance income 35 763 670
Finance cost (1,081) (1,207) (2,621)
Profit before tax 34,013 29,964 73,421
Total tax charge 5 (8,422) (7,339) (19,331)
Profit for the period 25,591 22,625 54,090
Other comprehensive income
Items that are or may subsequently be classified to profit and loss:
Exchange differences arising on translation of foreign operations 2,451 (3,192) (4,839)
Exchange differences reclassified to income statement on disposal of - - 76
subsidiaries
Total items that are or may subsequently be classified to profit and loss 2,451 (3,192) (4,763)
Items that will not be classified to profit and loss:
Remeasurement losses in defined benefit obligations and other - - (520)
post-employment benefit obligations
Deferred tax on remeasurement gains - - 118
Total Items that will not be classified to profit and loss - - (402)
Other comprehensive income / (expense) for the year net of tax 2,451 (3,192) (5,165)
Total comprehensive income for the period 28,042 19,433 48,925
Profit for the period attributable to:
Owners of the parent 25,591 22,625 54,090
Non-controlling interests - - -
25,591 22,625 54,090
Total comprehensive income attributable to:
Owners of the parent 28,042 19,433 48,925
Non-controlling interests - - -
28,042 19,433 48,925
Earnings per share
Basic earnings per share 7 6.79p 6.01p 14.36p
Diluted earnings per share 7 6.74p 5.97p 14.27p
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 30 April 2025
Unaudited Unaudited Audited
30 April 30 April 31 October
2025 2024 2024
(restated)
Notes £'000 £'000 £'000
Assets
Goodwill 9 13,442 12,224 11,006
Other intangible assets 9 13,697 16,206 14,362
Property, plant & equipment 9 146,855 122,300 136,332
Investment in associates 38 34 37
Financial instruments held at FVTPL 10 1,861 2,146 1,619
Other receivables 2,856 3,104 2,814
Non-current assets 178,749 156,014 166,170
Inventories 11 38,352 37,430 38,065
Trade and other receivables 20,498 11,830 19,292
Current tax 10,119 10,988 97
Financial instruments held at FVTPL 10 - 3,728 -
Cash and cash equivalents 12 74,927 82,656 86,147
Current assets 143,896 146,632 143,601
Assets of the disposal group and non-current assets classified as held for 13 - 12,511 2,869
sale
Total assets 322,645 315,157 312,640
Equity
Share capital 1,882 1,893 1,882
Share premium 11,571 11,311 11,510
Treasury shares - (3,394) -
Capital redemption reserve 12 - 12
Translation and other reserves 10,683 9,069 7,990
Retained earnings 171,069 148,629 158,477
Total Shareholders' funds 195,217 167,508 179,871
Liabilities
Financial liabilities 25,284 44,919 35,957
Post-employment benefit obligations 4,437 3,848 4,402
Deferred tax liabilities 7,115 5,507 7,202
Non-current liabilities 36,836 54,274 47,561
Financial liabilities 23,165 26,648 23,806
Provisions 1,995 1,196 1,306
Current tax 10,842 9,478 3,253
Trade and other payables 54,590 52,893 56,843
Current liabilities 90,592 90,215 85,208
Liabilities of the disposal group classified as held for sale 13 - 3,160 -
Total equity and liabilities 322,645 315,157 312,640
The comparative figures at 30 April 2024 have been restated to reflect the
outcome of the purchase price allocation for the Fujifilm acquisition, which
completed in September 2023. The balance of other intangible assets has
increased by £4,181,000 and the balance of goodwill decreased by £2,999,000.
The acquisition generated a gain on bargain purchase of £1,182,000 and
retained earnings have been increased by this amount.
The accompanying notes form an integral part of these condensed consolidated
financial statements.
GROUP CONDENSED STATEMENT OF CASH FLOWS
for the six months ended 30 April 2025
Unaudited Unaudited Audited
Six months to
Six months to
12 months to
30 April
30 April
31 October
2025
2024
2024
Notes £'000 £'000 £'000
Cash flow from operating activities
Profit before tax 34,013 29,964 73,421
Finance costs 446 545 1,046
Interest of lease liabilities 635 662 1,575
Finance income (35) (763) (670)
Non-operating income - net (1,963) (133) (982)
Operating profit 33,096 30,275 74,390
Amortisation and impairment of intangible assets 2,201 3,121 7,425
Depreciation and impairment of property, plant and equipment 17,889 17,757 32,409
Loss on sale of property, plant and equipment and intangible assets 263 47 263
Exchange differences (1,833) 1,347 1,081
Non-cash movements in provisions and post-employment benefit obligations (148) (903) 541
Share based compensation charge 242 303 795
Other non cash items (335) (337) 268
Changes in working capital:
Inventories (287) (4,929) (5,564)
Trade and other receivables (1,248) 80 (3,099)
Trade and other payables (2,253) (5,027) (1,078)
Cash generated from operations 47,587 41,734 107,431
Payments made in respect of provisions and post-employment benefit (458) - (796)
obligations
Interest paid (1,081) (1,207) (2,621)
Interest received 60 763 670
Taxation paid (10,942) (11,892) (17,518)
Net cash generated from operating activities 35,166 29,398 87,166
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired (525) - -
Deferred consideration for acquisition of subsidiaries - (100) -
Proceeds from disposal of subsidiaries - - 3,673
Cash held by disposal group classified as held for sale - (262) -
Purchase of intangible assets (1,247) (967) (2,511)
Purchase of property, plant and equipment (including additions to (27,603) (25,607) (52,103)
non-current assets held for sale)
Proceeds from sale of non-current assets classified as held for sale 4,447 - 1,852
Proceeds from sale of property, plant and equipment and other intangibles 648 967 1,523
Net cash utilised in investing activities (24,280) (25,969) (47,566)
Cash flows from financing activities
Issue of ordinary shares to equity shareholders 61 230 430
Purchase of treasury shares - (1,425) (1,425)
Repayment of principal of leases (2,105) (2,741) (5,932)
Repayment of borrowings (11,041) (14,850) (27,049)
New borrowings drawn 513 638 1,152
Dividends paid to owners of the Parent (12,999) (11,203) (27,842)
Net cash utilised in financing activities (25,571) (29,351) (60,666)
Net decrease in cash and cash equivalents (14,685) (25,922) (21,067)
Cash and cash equivalents at beginning of year 86,147 111,091 111,091
Exchange gain / (loss) on cash and cash equivalents 3,465 (2,513) (3,877)
Cash and cash equivalents at end of year 12 74,927 82,656 86,147
The accompanying notes form an integral part of these condensed consolidated
financial statements.
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 April 2025
Share Share Treasury Capital Other Translation Retained Total
capital
premium
reserves
reserve
earnings
£'000
£'000
£'000 shares Redemption
£'000
£'000
£'000
£'000
reserve
£'000
At 1 November 2023 (restated) 1,891 11,083 (1,969) - 3,010 8,948 137,207 160,170
Profit for the period - - - - - - 22,625 22,625
Other comprehensive expense:
Exchange differences - - - - - (3,192) - (3,192)
Total other comprehensive expense - - - - - (3,192) - (3,192)
Total comprehensive income - - - - - (3,192) 22,625 19,433
Transactions with owners of the Parent:
Shares issued in the period 2 228 - - - - - 230
Purchase of treasury shares - - (1,425) - - - - (1,425)
Share options (note 8) - - - 303 - - 303
Dividends (note 6) - - - - - - (11,203) (11,203)
Total transactions with owners of the Parent 2 228 (1,425) - 303 - (11,203) (12,095)
At 30 April 2024 (restated) 1,893 11,311 (3,394) 3,313 5,756 148,629 167,508
Profit for the period (restated) - - - - - - 30,283 30,283
Other comprehensive expense:
Exchange differences - - - - - (1,647) - (1,647)
Translation reserve taken to - - - - - 76 - 76
income statement on disposal
of subsidiaries
Remeasurement losses in defined benefit - - - - - - (520) (520)
pension scheme and other post-employment
benefit obligations
Deferred tax on remeasurement losses - - - - - - 118 118
Total other comprehensive expense - - - - - (1,571) (402) (1,973)
Total comprehensive income - - - - (1,571) 29,881 28,310
Transactions with owners of the Parent:
Shares issued in the period 1 199 - - - - - 200
Purchase of treasury shares - - - - - - - -
Cancellation of treasury shares (12) - 3,394 12 - - (3,394) -
Share options - - - - 492 - - 492
Dividends - - - - - - (16,639) (16,639)
Total transactions with owners of the Parent (11) 199 3,394 12 492 - (20,033) (15,947)
At 31 October 2024 1,882 11,510 - 12 3,805 4,185 158,477 179,871
At 1 November 2024 1,882 11,510 - 12 3,805 4,185 158,477 179,871
Profit for the period - - - - - 25,591 25,591
Other comprehensive income:
Exchange differences - - - - 2,451 - 2,451
Total other comprehensive income - - - - 2,451 - 2,451
Total comprehensive income - - - - 2,451 25,591 28,042
Transactions with owners of the Parent:
Shares issued in the period - 61 - - - - - 61
Share options (note 8) - - - 242 - - 242
Dividends (note 6) - - - - - - (12,999) (12,999)
Total transactions with owners - 61 - - 242 - (12,999) (12,696)
of the Parent
At 30 April 2025 1,882 11,571 - 12 4,047 6,636 171,069 195,217
Retained earnings balances at 1 November 2023 and 30 April 2024 have been
restated to increase them by £1,182,000. This is to reflect the impact on
equity of the completion of the purchase price allocation for the Fujifilm
acquisition.
The accompanying notes form an integral part of these condensed consolidated
financial statements.
NOTES
1. General information and authorization of the Interim Report
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
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.
The condensed consolidated interim financial statements of Me Group
International plc (the "Company") for the six months ended 30 April 2025 ("the
Interim Report") were approved and authorised for issue by the Board of
Directors on 22 July 2025. These condensed consolidated interim financial
statements comprise the Company and its subsidiaries (together the "Group")
and are presented in pounds sterling, rounded to the nearest thousand.
2. Basis of preparation and accounting policies
The financial statements have been prepared in accordance with IAS 34. The
accounting policies applied are consistent with those that were applied in the
Company's consolidated financial statements for the 12 months ended 31 October
2024 and that are expected to be applied in its consolidated financial
statements for the year ended 31 October 2025.
The condensed consolidated interim financial statements comprise the unaudited
financial information for the six months ended 30 April 2025. They do not
include all of the information and disclosures required for full annual
financial statements and should be read in conjunction with the Group's
financial statements for the period ended 31 October 2024. The condensed
financial statements do not constitute statutory accounts within the meaning
of section 434 of the UK Companies Act 2006.
The consolidated financial statements of the Group as at and for the period
ended 31 October 2024 are available at www.me-group.com or upon request from
the Company's registered office at Unit 3B, Blenheim Rd, Epsom, KT19 9AP,
Surrey. Those accounts have been reported on by the Company's auditor and
delivered to the Registrar of Companies. The report of the auditor (i) was
unmodified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without modifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The Interim Report is unaudited but has been reviewed by the auditor and their
report to the Company is included in the Interim Report.
Accounting policies and estimates
The accounting policies applied by the Group in this Interim Report are the
same as those applied in the Group's financial statements for the 12-month
period ended 31 October 2024.
Estimates and significant judgements
The preparation of the condensed consolidated financial information requires
management to make estimates and assumptions that affect the reported amounts
of revenue, expenses, assets and liabilities and the disclosure of contingent
liabilities at the date of the condensed consolidated financial information.
Such estimates and assumptions are based on historical experience and various
other factors that are believed to be reasonable in the circumstances and
constitute management's best judgement at the date of the financial
statements. In future, actual experience may deviate from these estimates and
assumptions, which could affect the financial statements as the original
estimates and assumptions are modified, as appropriate, in the period in which
the circumstances change.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were in the same areas
as those that applied in the consolidated financial statements as at and for
the period ended 31 October 2024.
Use of non-GAAP profit measures
The Group measures performance using earnings before interest, tax,
depreciation and amortisation ("EBITDA"). EBITDA is a commonly used measure
but is not defined in IFRS.
The Group measures cash on a net cash basis as explained in note 12.
Going Concern
The Annual Report for the period ended 31 October 2024 provided a full
description of the Group's business activities, its financial position, cash
flows, funding position and available facilities, together with the factors
likely to affect its future development, performance and position. It also
detailed risks associated with the Group's business. This interim report
provides updated information on these subjects for the six months to 30 April
2025.
The Group has, at the date of this Interim Report, sufficient financing
available for its estimated requirements for at least the next twelve months,
together with the proven ability to generate cash from its trading
performance. This provides the Directors with confidence that the Group is
well placed to manage its business risks successfully in the context of the
current financial conditions and the general outlook in the global economy.
After reviewing the Group's annual budgets, plans and financing arrangements,
the Directors consider that the Group has adequate resources to continue
operating for the foreseeable future. The Directors consider it appropriate to
adopt the going concern basis of accounting in preparing the interim financial
statements and have not identified any material uncertainties to the company's
ability to continue to do so over a period of at least twelve months from
their date of approval.
New accounting standards
Adopted by the Group
The Group has adopted the following new standards and amendments for the first
time in these financial statements with no material impact.
· Lease liability in a sale and leaseback - Amendments to
IFRS 16
· Classification of liabilities as current or non-current
and non-current liabilities with covenants - Amendments to IAS 1
· Disclosure of supplier finance arrangements -
Amendments to IAS 7 and IFRS 7
Not yet adopted by the Group
Certain new accounting standards and interpretations have been published and
adopted by the UK but are not mandatory for the current period and have not
been early adopted by the Group. These new standards and interpretations,
which are not expected to have a material effect on the Group, are set out
below.
Description Date required to be
adopted by the Group
Lack of exchangeability - Amendments to IAS 21 1 January 2025
Amendments to IFRS 7 and IFRS 9 - classification and measurement of financial 1 January 2026
instruments
Annual improvements to IFRS Accounting Standards Volume 11 1 January 2026
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.
Seasonality of operations
Historically, the second half of the financial year is seasonally the
strongest for the Group in terms of profits.
The following tables provide analysis of performance by geographic segment:
Asia Continental United Kingdom
Pacific Europe & Ireland Corporate Total
Six months to 30 April 2025 £'000 £'000 £'000 £'000 £'000
Photo.ME 22,328 51,793 8,624 - 82,745
Wash.ME 45 30,710 16,274 - 47,029
Print.ME 5 5,388 52 - 5,445
Other Vending (including Feed.ME) 3,088 1,140 951 - 5,179
Total vending revenue 25,467 89,030 25,900 - 140,398
Sales of equipment, spare parts, consumables 167 9,695 110 - 9,972
Sales of services 107 3,228 84 - 3,418
Total revenue 25,741 101,953 26,094 - 153,789
EBITDA 6,311 39,547 11,338 (4,012) 53,184
Depreciation and amortisation (2,431) (13,867) (3,543) (247) (20,088)
Impairment - - - - -
Operating profit / (loss) 3,880 25,680 7,795 (4,259) 33,096
Operating profit 33,096
Non-operating income 1,963
Finance income 35
Finance costs (1,081)
Profit before tax 34,013
Tax (8,422)
Profit for the period 25,591
Capital expenditure (excluding Right of Use assets) 1,181 20,520 6,708 441 28,850
Asia Continental United Kingdom
Pacific Europe & Ireland Corporate Total
Six months to 30 April 2024 £'000 £'000 £'000 £'000 £'000
Photo.ME 22,583 53,022 10,310 - 85,915
Wash.ME 113 27,611 13,989 - 41,712
Print.ME 26 5,107 59 - 5,191
Other Vending (including Feed.ME) 3,218 967 765 - 4,950
Total vending revenue 25,939 86,707 25,122 - 137,769
Sales of equipment, spare parts, consumables 296 10,215 471 - 10,982
Sales of services 173 1,347 84 - 1,605
Total revenue 26,408 98,270 25,678 - 150,355
EBITDA 5,983 35,615 10,514 (932) 51,180
Depreciation and amortisation (2,720) (14,615) (3,345) (221) (20,901)
Impairment (4) - - - (4)
Operating profit / (loss) 3,259 21,000 7,169 (1,153) 30,275
Operating profit 30,275
Non-operating income 133
Finance income 763
Finance costs (1,207)
Profit before tax 29,964
Tax (7,339)
Profit for the period 22,625
Capital expenditure (excluding Right of Use assets) 1,289 19,484 5,420 381 26,574
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 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
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 30 April 2025 (2024:
none).
4. Non-operating income - net
Non-operating income - net comprises transactions relating to financial
instruments held at FVTPL, other financial instruments and the disposal of
subsidiaries and property. They have been disclosed separately to improve a
reader's understanding of the financial statements and are not disclosed
within operating profit as they are non-trading in nature.
Six months to Six months to 12 months to
30 April 30 April 31 October
2025 2024 2024
£'000 £'000 £'000
Non-operating income
Loss on disposal of subsidiary - - (339)
Gain on disposal of property 1,595 - 378
Gain on bargain purchase - - 1,120
Fair value gain / (loss) on financial instrument held at FVTPL 343 89 (334)
Other gain 25 44 157
1,963 133 982
Six months to 30 April 2025
The Group made a gain of £1,595,000 from the disposal of an office building
in Grenoble, France. Prior to disposal the office building was classified as a
non-current asset held for sale (see note 13).
5. Taxation
Six months to Six months to 12 months to
30 April 30 April 31 October
2025 2024 2024
£'000 £'000 £'000
Profit before tax 34,013 29,964 73,421
Total taxation charge (8,422) (7,339) (19,331)
Effective tax rate 24.8% 24.5% 26.3%
The tax charge in the Group Income Statement is based on management's best
estimate of the full year effective tax rate based on expected 12-months
profits to 31 October 2025.
The Group undertakes business in multiple tax jurisdictions.
6. Dividends paid and proposed
30 April 30 April 31 October
2025 2024 2024
£'000 £'000 £'000
Dividends paid during the period/year
Final dividend for 2023: 4.42p - - 16,640
Interim dividend for 2024: 3.45p (2023: 2.97p) 12,998 11,202 11,202
12,998 11,202 27,842
Dividends in respect of the period/year
Interim dividend for 2025: 3.85p (2024: 3.45p) 14,520 12,999 12,999
Final dividend for 2024: 4.45p - - 16,751
14,520 12,999 29,750
The Board proposed a final dividend of 4.45p per ordinary share in respect of
the year ended 31 October 2024, which was approved by shareholders at the
Annual General Meeting held on 26 April 2025 and paid on 23 May 2025.
7. Earnings per share
Basic earnings per share amounts are calculated by dividing net earnings
attributable to shareholders of the Parent 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, as detailed
in note 8.
The earnings and weighted average number of shares used in the calculation of
earnings per share are set out in the table below:
Six months to Six months to 12 months to
30 April 30 April 31 October
2025 2024 2024
Basic earnings per share 6.79 6.01 14.36
Diluted earnings per share 6.74 5.97 14.27
Earnings available to shareholders (£'000) 25,591 22,625 54,090
Weighted average number of shares in issue in the period
- Basic ('000) 376,818 376,583 376,605
- Including dilutive share options ('000) 379,897 379,066 379,171
8. Share-based payments
The Group grants share options to senior staff, including directors, allowing
them to purchase Ordinary shares of 0.5p each. As at 30 April 2025, the total
number of options granted and within their vesting period or available to
exercise was 6,758,973.
All options can be exercised, in normal circumstances, within a period of
between four and seven years from the vesting date, providing that the
performance criterion or performance condition has been achieved. The
subscription price for all options is based upon the average market price on
the three days prior to the date of grant. Options are restricted, or may
lapse, if the grantee leaves the employment of the Group before the first
exercise date.
All options are equity settled options.
All options are covered by the new ME Group Executive Share Option Scheme. The
vesting of options is subject to an EPS-based performance condition relating
to the extent to which the Company's basic EPS for the third financial year,
following the date of grant, reaches a sliding scale of challenging EPS
targets.
Options are normally granted over shares worth up to 150% of a participant's
salary each year. In exceptional cases as part of the terms of attracting
senior management, options in excess of that number may be granted.
In accordance with IFRS 2 Share-based Payments, share options granted to
senior management including directors after November 2002 have been
fair-valued and the Company has used the Black-Scholes option pricing model.
This model takes into account the terms and conditions under which the options
were granted.
The charge for share-based payments in the six months to 30 April 2025 was
£242,000 (Six months to 30 April 2024: £303,000).
9. Non-current assets: Goodwill, other intangibles and property, plant and
equipment
Goodwill Other Property, plant
intangible & equipment
assets
£'000 £'000 £'000
Net book value at 1 November 2023 15,889 21,963 118,124
Exchange adjustment (512) (603) (3,856)
Additions - capitalised development costs - 1,839 -
Additions -software and other intangible assets - 672 -
Additions - photobooths & vending machines - - 45,878
Additions - plant, machinery and vehicles - - 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 subsidary (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
Exchange adjustment 98 309 1,595
Additions - capitalised development costs - 563 -
Additions -software and other intangible assets - 684 -
Additions - photobooths & vending machines - - 24,041
Additions - plant, machinery and vehicles - - 3,562
Additions - right of use assets - - 2
Additions - new subsidary 2,338 2 101
Amortisation / Depreciation - (2,201) (17,889)
Disposals at net book value - (22) (889)
Net book value at 30 April 2025 13,442 13,697 146,855
Capital commitments
At 30 April 2025 the Group was committed to purchases of property, plant and
equipment with a total value of £35,865,000. This all relates to the purchase
of photobooths, laundry units and other vending machines.
10. Fair values of financial instruments by class
There is no difference between the fair values and the carrying values of
financial assets and financial liabilities held in the Group's statement of
financial position.
Financial instruments held at fair value - Level 1
The Group holds an investment in Max Sight Group Holdings Ltd, which is a
listed company. This investment is valued at level 1. The Group owns
109,972,500 Max Sight Group Holdings Ltd's shares valued at 0.081 HKD per
share as at 30 April 2025, giving a value at that date of £862,000.
This financial instrument is valued at the reporting date by reference to
quoted market prices.
Financial instruments held at fair value - Level 2
There are no material Level 2 investments held by the Group.
Financial instruments held at fair value - Level 3
The Group holds 125 B shares in Energy Observer Developments SAS, a privately
held company, following the conversion of 100,000 convertible bonds to equity
on 14 November 2023. This investment is valued at level 3 as its value is
linked to the equity value of Energy Observer Developments SAS, which is not
observable market data. At 30 April 2025, the shares are valued at £998,000.
The investment in shares is valued at the reporting date by reference to the
latest equity valuation of the issuing company. The equity valuation used was
based on a fund raising by the issuing company. This, in effect, gave an
external, arms-length valuation as new investors were purchasing equity based
on their valuation of the company. This fund raising information is the key
unobservable input to the valuation calculation. A 20% decrease in the equity
value of Energy Observer Developments SAS would result in a decrease in
valuation of £200,000.
Movement in level 3 financial instruments fair value
The following table presents the changes in level 3 financial instruments for
the periods ended 31 October 2024 and 30 April 2025.
Convertible Unlisted
Bond Equities Total
£'000 £'000 £'000
Fair Value at 1 November 2023 4,741 - 4,741
Foreign exchange movement recognised in other comprehensive income (150) (41) (191)
Conversion of bonds to shares (1,023) 1,023 -
Fair value gain recognised in non-operating income - net 172 - 172
Bonds matured (transferred to receivables) (3,740) - (3,740)
Fair Value at 31 October 2024 - 982 982
Foreign exchange movement recognised in other comprehensive income - 16 16
Fair Value at 30 April 2025 - 998 998
Financial instruments by category
The tables below show financial instruments by category held by the Group.
At 30 April 2025 Loans and Fair Value Total
receivables Through
Profit & Loss
£'000 £'000 £'000
Assets per statement of financial position
Financial instruments held at FVTPL - 1,861 1,861
Financial assets - held at amortised cost:
Trade and other receivables (excluding prepayments) 18,145 - 18,145
Cash and cash equivalents 74,927 - 74,927
93,072 1,861 94,933
Other financial Total
liabilities at
amortised cost
£'000 £'000
Liabilities per statement of financial position
Borrowings 38,733 38,733
Leases 9,716 9,716
Trade and other payables 54,590 54,590
103,039 103,039
At 30 April 2024 Loans and Fair Value Total
receivables Through
Profit & Loss
£'000 £'000 £'000
Assets per statement of financial position
Financial instruments held at FVTPL - 5,874 5,874
Financial assets - held at amortised cost:
Trade and other receivables (excluding prepayments) 10,994 - 10,994
Cash and cash equivalents 82,656 - 82,656
93,650 5,874 99,524
Other financial Total
liabilities at
amortised cost
£'000 £'000
Liabilities per statement of financial position
Borrowings 60,970 60,970
Leases 10,597 10,597
Trade and other payables 52,893 52,893
124,460 124,460
At 31 October 2024 Loans and Fair Value Total
receivables Through
Profit & Loss
£'000 £'000 £'000
Financial instruments held at FVTPL - 1,619 1,619
Financial assets - held at amortised cost:
Trade and other receivables (excluding prepayments) 18,240 - 18,240
Cash and cash equivalents 86,147 - 86,147
104,387 1,619 106,006
Other financial Total
liabilities at
amortised cost
£'000 £'000
Liabilities per statement of financial position
Borrowings 47,945 47,945
Leases 11,819 11,819
Trade and other payables 56,843 56,843
116,607 116,607
11. Inventories
Unaudited Unaudited Audited
30 April 30 April 31 October
2025 2024 2024
£'000 £'000 £'000
Raw materials and consumables 26,603 26,229 25,794
Finished goods 11,749 11,201 12,271
38,352 37,430 38,065
12. Net cash
Unaudited Unaudited Audited
30 April 30 April 31 October
2025 2024 2024
£'000 £'000 £'000
Cash and cash equivalents per statement of financial position 74,927 82,656 86,147
Non-current borrowings (20,024) (38,341) (28,547)
Current borrowings (18,709) (22,629) (19,398)
Net cash 36,194 21,686 38,202
Cash and cash equivalents per the cash flow comprise cash at bank and in hand
and short-term deposit accounts with an original maturity of less than three
months, less bank overdrafts.
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 includes in net cash: cash and cash equivalents and
certain financial assets (mainly deposits), less instalments on loans and
other borrowings (excluding lease liabilities).
The table above, which is not currently required by IFRS, reconciles the
Group's net cash to the Group's statement of cash flows. Management believes
the presentation of the tables will be of assistance to shareholders.
13. Non-current assets classified as held for sale
Property
£'000
Net Book Value
At 31 October 2023 4,947
Exchange differences (196)
Disposal (1,882)
At 31 October 2024 2,869
Exchange differences (17)
Disposal (2,852)
At 30 April 2025 -
The non-current asset classified as held for sale was an office building and
associated land, located in Grenoble, France. The Group previously earned
rental income from the office building but has now disposed of the property.
The property was disposed in two tranches. The sale of tranche one was
completed on 31 October 2024 and the sale of tranche two was completed on 20
February 2025.
The disposal recognized in the period represents the cost attributable to the
sale of tranche two. The Group made a gain of £1,595,000 on the disposal of
tranche two, which has been recognised in non-operating income - net.
The disposal of tranche one was recognized in the year ended 31 October 2024,
a gain of £378,000 recognised in non-operating income - net.
The non-current asset classified as held for sale was included in the
Continental Europe operating segment.
14. IFRS 3 Business Combinations
Automated Products Services
On 7 March 2025 the Group completed the acquisition of 100% of the issued
share capital of SG Technologies Systems International and its fully owned
subsidiary, Automated Products Services (APS), obtaining control of both
businesses on that date.
The initial consideration paid on the acquisition date was €2,400,000
(£2,011,735).
APS is a Belgian photobooth manufacturer and operator and its acquisition adds
an additional 116 photobooth units to the Group's existing operations in
Belgium. This acquisition supports the Group's strategy to expand the number
of units in operation.
The acquisition was funded by the Group's cash.
Deferred consideration
A further €227,000 consideration was paid on 4 June 2025. This was in
relation to a post-closing net debt adjustment.
A portion of the total consideration is deferred and contingent on the
acquired business meeting revenue targets for the 12-month periods ending 31
December 2025 and 2026. The deferred consideration is determined using a
sliding scale subject to a maximum of €1,600,000.
At the reporting date, management's best estimate is that the revenue targets
will be met in full and the maximum deferred consideration of €1,600,000
will be payable. The present value of the deferred consideration and estimated
contingent consideration has been accrued and included in the total estimated
consideration value of €3,987,000 (£3,341,000).
Acquired assets and liabilities
Due to the proximity of the transaction to the reporting date, the purchase
price allocation, including determination of the fair value of intangible
assets recognised on consolidation has not been finalised.
Goodwill has been calculated using the provisional fair values of the assets
and liabilities acquired, with a value of £2,338,000 recognised in the
Group's Statement of Financial Position. Management expects that a portion of
this provisional goodwill balance will be reclassified to customer-related
intangible assets once the purchase price allocation is complete. Any residual
goodwill balance will be attributable to synergies from combining operations
of the acquired company.
Pending receipt of the final valuations of the assets acquired, in accordance
with IFRS 3, the accounts will be adjusted retrospectively within the
measurement period of no more than one year from the acquisition date.
The fair value of acquired other receivables is equal to their carrying value.
All receivables are expected to be recoverable in full.
The provisional fair values of the assets and liabilities acquired, cash
outlay on acquisition and results of the acquired business included in Group
results in the six months ended 30 April 2025 are shown in the table below.
£'000
Property, plant and equipment 101
Intangible assets 2
Total non-current assets 103
Inventory 24
Other receivables 110
Cash and cash equivalents 1,486
Total current assets 1,620
Total assets 1,723
Trade and other payables 228
Total current liabilities 228
Borrowings 492
Total non-current liabilities 492
Total liabilities 720
Total identifiable net assets excluding goodwill 1,003
Goodwill 2,338
Total identifiable net assets acquired 3,341
Satisfied by:
Cash 2,011
Deferred consideration 1,330
Total consideration 3,341
Cash consideration per cashflow:
Cash consideration 2,011
Net cash acquired (1,486)
Initial cash outlay on purchase of subsidiaries 525
Contribution to consolidated income statement in the period
Revenue 467
Profit before tax 297
Results of the combined entities
Had the acquired entities been part of the Group's consolidated results since
the beginning of the reporting period (1 November 2024), they would have
contributed £1,464,000 to revenue and £802,000 to profit after tax. For the
six-month period ended 30 April 2025, the combined Group's revenue would have
been £154,786,000 and profit after tax would have been £26,165,000.
15. Events after statement of financial position date
On 18 June 2025 the Group announced that it is evaluating various strategic
options to enhance shareholder value. One of the options being considered
involves seeking potential offerors for the Group.
To date, the Group is not in receipt of any offer proposals. There can be no
certainty that any firm offer will be made, nor as to the terms on which any
offer might be made.
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF-YEARLY
FINANCIAL REPORT
The Directors of the Company each confirms that to the best of his or her
knowledge:
· The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the UK;
· The Interim Management Report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period and any changes in
the related party transactions described in the last annual report that could
do so.
· The Directors of the Company and their respective functions are as
follows:
o Sir John Lewis OBE (Chairman)
o Mr Serge Crasnianski (CEO and Deputy Chairman)
o Miss Tania Crasnianski (Executive Director)
o Mr Vladimir Crasneanscki (Executive Director and General Manager UK and
Head of Investor Relations)
o Miss Françoise Coutaz-Replan (Independent Non-executive Director)
o Mr René Proglio (Independent Non-executive Director)
o The Rt Hon Gregory Barker (Lord Barker of Battle) (Independent
Non-executive Director)
o Mr Jean-Marc Janailhac (Non-independent Non-executive Director)
Further details can be found on page 73 of the Company's Annual Report 2024.
By order of the Board
Sir John Lewis OBE (Non-executive Chairman)
Serge Crasnianski (Chief Executive Officer and Deputy Chairman)
22 July 2025
INDEPENDENT REVIEW REPORT
Conclusion
We have been engaged by Me Group International Plc ("the Company") to review
the condensed set of financial statements in the interim financial report for
the six months ended 30 April 2025 which comprises the Group Condensed
Statement of Comprehensive Income, the Group Condensed Statement of Financial
Position, the Group Condensed Statement of Cash Flows, the Group Condensed
Statement of Changes in Equity and related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the six months ended 30 April 2025 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting', and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 (Revised), "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued for use in the
United Kingdom. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with UK adopted International Accounting Standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410 (Revised), however future events or conditions may cause the
entity to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for the preparation and fair presentation of
this interim financial report in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting', and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the interim financial report, the directors are responsible for
assessing the company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of the review report
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK) 2410 issued by the Financial Reporting
Council and our Engagement Letter dated 30 June 2025. Our work has been
undertaken so that we might state to the Company those matters we are required
to state to them in an independent review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this report, or for
the conclusions we have formed.
Signed:
Claire Larquetoux (Senior Statutory Auditor)
For and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
Forvis Mazars LLP
Chartered Accountants
30 Old Bailey
London
EC4M 7AU
Date: 22 July 2025
Appendix 1 - ME Group Profit Forecast
The Company's interim results announcement contains the following statement:
"The Board continues to anticipate FY 2025 profit before tax will be between
£76 million and £80 million."
This statement constitutes a profit forecast for the purposes of Rule 28 of
the City Code on Takeovers and Mergers (the "ME Group Profit Forecast").
Basis of preparation and assumptions
The ME Group Profit Forecast is based on the Group's unaudited accounts for
the 6-month period ending 30 April 2025. The ME Group Profit Forecast has been
prepared on a basis consistent with the Group's accounting policies which are
in accordance with IFRS.
Assumptions
The ME Group Profit Forecast is based on the assumptions listed below.
Factors outside the influence or control of the directors of the Company (the
"ME Group Directors"):
· there will be no material changes to the existing prevailing
macroeconomic, regulatory or political conditions in the markets and regions
in which the Group operates;
· the interest, inflation and tax rates in the markets and regions in
which the Group operates will remain materially unchanged from the prevailing
rates;
· there will be no material changes of the value of pound sterling
above the existing prevailing foreign exchange rates;
· there will be no material adverse events that will have a
significant impact on the Group's financial performance;
· there will be no business disruptions that materially affect the
Group or its key customers, including natural disasters, acts of terrorism or
technological issues or interruptions;
· there were will be no material change in the Group's labour costs,
including medical and pension and other post-retirement benefits driven by
external parties or regulations; and
· there will be no material changes in legislation or regulatory
requirements impacting on the Group's operations or its accounting policies.
Factors within the influence or control of the ME Group Directors:
· there will be no material change in the operational strategy of the
Group;
· there will be no material unplanned asset disposals, merger and
acquisition or divestment activity conducted by or affecting the Group; and
· there will be no material change in the dividend or capital
allocation policies of the Group.
The ME Group Directors' confirmation
The ME Group Directors have considered the ME Group Profit Forecast and
confirm that it remains valid as at the date of this announcement, has been
properly compiled on the basis of the assumptions set out above, and the basis
of the accounting used is consistent with the Group's accounting policies.
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