ME Group H1 Revenue Inches Up, but Profits Dip on Photobooth Weakness

ME Group, the UK-based operator of instant-service equipment, reported a marginal revenue increase for the first half of the year, though profitability declined due to a mixed performance across its business segments. The results highlight a strategic divergence, with strong growth in its laundry operations unable to fully offset headwinds in the photobooth division.

A Tale of Two Segments

ME Group's total first-half revenue rose 0.3% year-over-year to £154.3 million, according to the company's latest trading update. However, profit before tax fell by 3.8% to £32.7 million, and diluted earnings per share saw a similar decline of 3.9%.

The primary driver of top-line growth was the company's Wash.ME laundry division, which saw its revenue climb by 16.3%. This performance was supported by the installation of 499 net new machines during the period.

In contrast, the photobooth business experienced a revenue drop of 6.2%. The company attributed this decline to regulatory changes in Germany and weaker demand in some markets, particularly in April. A third segment, equipment sales, saw revenue fall 14.2% as the company deliberately prioritized operating its own higher-margin instant-service equipment over direct sales.

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Full-Year Outlook

Looking ahead, ME Group provided guidance for the full fiscal year 2026. The company expects profit before tax to be in the range of £69 million to £74 million.

Management anticipates a return to more normal trading patterns in the second half of the year. The company also set a target to install approximately 1,300 new laundry machines for the full fiscal year, signaling continued focus on its main growth area.