ME Group International (LSE:MEGP) reported modest revenue growth for the first half of 2026, with continued expansion of its self-service laundry business helping to offset weaker demand for its photobooth operations.
While profit before tax declined during the period, the company said trading improved towards the end of the half and it remains on track to achieve its revised full-year earnings expectations.
Laundry Division Continues to Drive Growth
Revenue for the six months to 30 April 2026 increased 0.3% to £154.3 million, while profit before tax fell 3.8% to £32.7 million.
EBITDA rose 7.1% compared with the previous year, with operating margins remaining broadly stable.
The strongest performance came from the Wash.ME laundry division, where revenue increased 16.3% to £54.8 million as the company continued to expand its installed machine base.
During the first half, ME Group installed a net 499 new laundry units and plans to add approximately 800 more before the end of the financial year.
New Contracts Support Expansion
The company secured a major agreement with ASDA to install Wash.ME units across its supermarket estate in the UK.
ME Group also renewed long-term agreements with French transport operators SNCF and RATP, reinforcing its presence in high-footfall locations across its largest market.
Management said the group’s strategy remains focused on growing its higher-margin recurring vending income through the continued rollout of self-operated laundry equipment.
Photobooth Business Faces Temporary Headwinds
Performance in the traditional photobooth business was affected by softer consumer demand during April, particularly in France, where weaker consumer confidence and geopolitical uncertainty reduced vending activity.
The company also reported lower equipment sales during the period and announced a reduced interim dividend.
However, management noted that trading conditions improved during May and June, with activity returning to more typical levels.
Strong cash generation continues to support investment in expansion while underpinning confidence in meeting revised full-year profit expectations.
Strong Fundamentals Support Long-Term Outlook
ME Group continues to benefit from a profitable business model, healthy cash generation and a strengthened balance sheet.
The shares also trade on a relatively modest valuation while offering an attractive dividend yield.
However, technical indicators remain mixed, with the share price below longer-term moving averages and recent free cash flow showing some signs of weakness.
About ME Group International
ME Group International is a leading operator of automated self-service equipment with more than 49,000 vending units installed across 16 countries.
Its portfolio includes Photo.ME photobooths, Wash.ME unattended laundry services and a range of complementary vending businesses, including printing, photocopying, foodservice and amusement machines.
The group continues to focus on expanding recurring, high-margin vending income through long-term partnerships in supermarkets, transport hubs and other high-traffic locations across Europe, the UK and Asia-Pacific.
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