ME Group International (LON:MEGP) Issues Quarterly Earnings Results

ME Group International (LON:MEGP) posted its quarterly earnings results on Monday. The company reported GBX 6.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. ME Group International had a return on equity of 27.72% and a net margin of 17.94%.

Here are the key takeaways from ME Group International’s conference call:

• ME Group said it is on track to meet revised FY2026 PBT guidance of GBP 69 million to GBP 74 million, helped by a return to more normalized trading in May after a softer April.
• Laundry is the main growth engine: Wash.ME revenue rose more than 16%, H1 EBITDA was up 7.1%, and the company remains on track to install 1,300 net laundry machines this year.
• April trading weakened, especially in photo booths, as management linked softer consumer sentiment and travel activity to Middle East conflict-related uncertainty and lower passport demand. May recovered to 11% above the prior year, but still came in below the original budget.
• The group’s business mix continues to shift toward recurring vending revenue, with laundry now nearly 40% of group vending revenue and almost half of group EBITDA, while equipment sales declined as the board prioritized recurring revenues.
• ME Group highlighted several strategic wins, including its largest-ever single client deal with ASDA, a trial with Aldi in Austria, and renewed multi-year contracts with SNCF and RATP worth more than GBP 9 million of revenue.

ME Group International Trading Down 5.7%

Shares of LON MEGP opened at GBX 106.60 on Tuesday. ME Group International has a one year low of GBX 98.50 and a one year high of GBX 228. The firm has a market capitalization of £399.37 million, a PE ratio of 7.15 and a beta of 0.49. The business has a 50-day moving average price of GBX 119.91 and a two-hundred day moving average price of GBX 133.97.

ME Group International announced that its Board of Directors has initiated a stock repurchase program on Monday, March 23rd that allows the company to repurchase 0 shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Canaccord Genuity Group reaffirmed a “buy” rating and set a GBX 220 target price on shares of ME Group International in a research report on Friday, March 27th. Peel Hunt restated a “buy” rating and set a GBX 230 price objective on shares of ME Group International in a report on Monday. Two research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of GBX 225.

ME Group International Company Profile

ME Group International plc (LSE: MEGP) is an international market leader in automated self-service equipment aimed at the consumer market, with over 49,000 vending units currently in operation.

The Group operates, sells and services a wide range of instant-service vending equipment across 16 countries in its key regions of Continental Europe, the UK & Republic of Ireland and Asia Pacific. The Group’s services include:

Core activities:
• Photo.ME – Photobooths and integrated biometric identification solutions
• Wash.ME – Unattended laundry services and launderettes

Ancillary activities:
• Print.ME – High-quality digital printing kiosks
• Other vending – Primarily foodservice vending equipment (Feed.ME), Children’s rides (Amuse.ME), Photocopier services (Copy.ME)

The Group has a proven track record of innovation and diversification of its products and services, enabling it to respond to the evolving needs of its customers and consumers.

The Group benefits from well-established partnerships and long-term contracts with major site owners in attractive, high-footfall locations, enabling it to offer multiple products and services onsite.