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ME Group Revenue Edges Higher on Laundry Strength, but Profit Declines
ME Group, the UK-based operator of instant-service equipment, announced a marginal year-over-year revenue increase for the first half of 2026, though profitability declined amid mixed performance across its business segments. The company reported total revenue of £154.3 million, a gain of 0.3%, while profit before tax fell 3.8% to £32.7 million.
Diverging Segment Performance
The company's results highlight a significant divergence between its primary divisions. The laundry operations were the main driver of growth, with revenue from the Wash.ME brand climbing 16.3%. ME Group attributed this strength to the installation of 499 net new machines during the period.
In contrast, the photobooth segment faced headwinds, with revenue dropping 6.2%. The company cited regulatory changes in Germany and a reduction in demand in certain markets, particularly in April, as key factors for the decline. Additionally, equipment sales revenue fell 14.2%, a strategic move as the company prioritizes operating its higher-margin instant-service equipment over direct sales.
AdFinancial Health and Outlook
The dip in profitability was reflected in the company's bottom line, with diluted earnings per share falling by 3.9% compared to the same period last year.
Looking ahead, ME Group provided full-year 2026 guidance, projecting a profit before tax in the range of £69 million to £74 million. The company is targeting approximately 1,300 new laundry machine installations for the full fiscal year and anticipates a return to normal trading patterns in the second half of 2026.