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RNS Number : 1360V
ME Group International PLC
30 November 2023
30 November 2023
ME GROUP INTERNATIONAL PLC
("ME Group" or "the Group" or "the Company")
Year-end Trading Update
Record financial performance, with rollout of next generation
photobooths underway
ME Group International plc (LSE: MEGP), the instant-service
equipment group, announces a post-year end update in respect of the
12 months ended 31 October 2023.
Trading Update
Following a strong first-half performance, the Group continued
to see positive trading momentum throughout the second half,
particularly across its core Photobooth and Laundry operations,
reflecting continued strong consumer demand. The Group expects to
have delivered a record financial performance for the year, despite
some operational challenges within its Feed.ME division, which has
since been reorganised.
For the 12 months to 31 October 2023, the Group expects revenue
to be marginally below the lower end of the previous guidance
range(1) but to be no less than GBP298 million. Nevertheless, given
the Group's focus on profitability, EBITDA remains in line with the
previously stated guidance range(1) and the Group expects it to be
significantly above GBP100 million. Profit Before Tax is expected
to be towards the top end of the previous guided range(1) and no
less than GBP67 million.
Strategic Progress
The Group also made good progress in delivering on its five-year
growth strategy.
Through technological innovation, the Group has continued to
expand and diversify its services. The rollout of its
next-generation multi-service photobooths is well underway,
initially focused in France, with approximately 547 machines
installed to date.
This next generation photobooth was developed by the Group's
in-house R&D team and offers range of new functionalities,
focused around enhancing the user experience. These new features
include 'Mobile to Print', user personalisation services using AI
and photo filters. The Group expects other new functions will be
added over time.
The Group is currently installing approximately 180
next-generation units per month and aims to increase this to
approximately 250 new installations per month during 2024.
At the same time, the Group is modernising the hardware of its
existing photobooth estate and installing its new proprietary
software at a rate of around 200 machines per month. This
proprietary software enables the Group's engineers to quickly and
cost-effectively upgrade each machine, remotely rather than needing
to physically visit the machines.
During the period, the Group significantly extended its presence
in Japan through the acquisition of 3,548 photobooths acquired from
FUJI in September 2023, positioning the Group as the leading
operator in the Japanese photobooth market, with over 15,000
machines in operation today.
Expansion of the Group's laundry operations also remains a key
priority and continues at pace. More than 820 Revolution machines
were installed during the year across the UK & Republic of
Ireland and Continental Europe, bringing the total number of
operating Revolution units to 5,533, representing growth of 16% in
the total number of machines operated by the Group.
In line with its strategy to further diversify and expand the
breadth of products and services offered by the Group, it continues
to actively invest in R&D to drive technological innovation.
With the next generation in Photobooths, the Group expects to trial
and rollout new exciting features during 2024.
Financial Position
The Group remains well capitalised and in a strong financial
position, with net cash of approximately GBP34.3 million and GBP4.3
million in convertible bonds as at 31 October 2023.
During the year, the Group repurchased GBP1.7 million of its
ordinary shares and also paid dividends totalling GBP13.6 million
(comprising of the final dividend for 2022 of GBP11.3 million and a
special dividend for 2022 of GBP2.3 million). In November 2023, the
Company paid its announced interim dividend for 2023, totalling
GBP11.2 million.
Annual Results
The Group will publish its 2023 Annual Results in February
2024.
1. Previous FY 2023 guidance was for revenues of between GBP300
million and GBP320 million, EBITDA between GBP100 million and
GBP110 million and profit before tax between GBP64 million and
GBP67 million.
ENQUIRIES:
ME Group International plc +44 (0) 1372 453 399
Serge Crasnianski, CEO
Stéphane Gibon, CFO
Hudson Sandler +44 (0) 20 7796 4133
Wendy Baker / Nick Moore me-group@hudsonsandler.com
NOTES TO EDITORS
ME Group International plc (LSE: MEGP) operates, sells and
services a wide range of instant-service vending equipment,
primarily aimed at the consumer market.
The Group operates vending units across 19 countries and its
technological innovation is focused on four principal areas:
-- Photo.ME - Photobooths and integrated biometric identification solutions
-- Wash.ME - Unattended laundry services and launderettes
-- Print.ME - High-quality digital printing kiosks
-- Feed.ME - Vending equipment for the food service market
In addition, the Group operates other vending equipment such as
children's rides, amusement machines, and business service
equipment.
Whilst the Group both sells and services this equipment, the
majority of units are owned, operated and maintained by the Group.
The Group pays the site owner a commission based on turnover, which
varies depending on the country, location and the type of
machine.
The Group has built long-term relationships with major site
owners and its equipment is generally sited in prime locations in
areas of high footfall such as supermarkets, shopping malls
(indoors and outdoors), transport hubs, and administration
buildings (City Halls, Police etc.). Equipment is maintained and
serviced by an established network of more than 650 field
engineers.
In August 2022 the Company changed its listed entity name to ME
Group International plc (previously Photo-Me International plc) to
better reflect the Group's diversification focus and business
strategy.
The Company's shares have been listed on the London Stock
Exchange since 1962.
For further information: www.me-group.com
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END
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