ME Group’s laundry business helps profits soar

Vending machine company ME Group has reported a surge in profits after installing record numbers of its “out of home” washing machines.

The group’s latest half-year trading update covered the six months to the end of April.

ME Group’s total revenue was up 4.6% in H1 2024 while its profit before tax climbed by 10.3% over the same period, as the firm said it was focused on the continued growth of its core photobooth and laundry operations.

In particular, the group’s laundry operations is the fastest growing business area with revenue up 17.4% compared with H1 2023, as the business delivered on its rollout of Revolution laundry machines and built on its record performance.

The number of Revolution laundry machines in operation grew by 18% compared to the same period last year, with a record 420 Revolution machines installed in H1 2024.

A statement from ME Group said: “The group remains in a well-capitalised and strong financial position, with high cash flow generation and long-term customer contracts providing the group with good predictability and visibility on revenue streams.”

At the end of April, ME Group had a gross cash position of £82.9m – down from £113.1m in H1 2023 – and a net cash position of £21.9m (£24.4m in H1 2023), excluding investments in convertible bonds of £4.7m, which also totalled £4.7m in a year ago.

“Historically, the second half of the financial year is seasonally the strongest for the group in terms of revenue and profits generated as well as the installation of machines across key locations,” ME Group added.

“As the group capitalises on the significant market opportunity for laundry and photobooth services, the board is confident in delivering record profitability for the year, in line with market expectations.”

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