ME Group Share Price Dropped 9.32% on Year-End Trading Update

The ME Group International PLC (LON: MEGP) share price dropped 9.32% as of 13:37 GMT after releasing its year-end trading update for the year ended 31 October 2023. The instant-service equipment group showcased record financial performance and significant strategic progress.

ME Group experienced robust trading momentum throughout the year's second half, with a particular focus on its core photobooth and laundry operations, which are driven by strong consumer demand.

The Group anticipates achieving a record financial performance for the year despite facing operational challenges in its Feed.ME division, which has since been addressed. For the 12 months ending on October 31, 2023, the Group expects its revenue to be slightly below the lower end of the previous guidance range but not less than £298 million. 

EBITDA remains in line with the previously stated guidance and is expected to be significantly above £100 million. Profit Before Tax is projected to be towards the upper end of the previously guided range and no less than £67 million.

ME Group made substantial advancements in executing its five-year growth strategy, focusing on technological innovation and service diversification. The rollout of next-generation multi-service photobooths has begun, with approximately 547 machines in France. 

These new photobooths, developed in-house, offer enhanced user experiences with features such as ‘Mobile to Print,' AI-based personalisation, and photo filters. Additional functionalities are expected to be added over time.

The Group is installing approximately 180 next-generation units per month and aims to increase this to around 250 installations per month in 2024. 

ME Group expanded its presence in Japan by acquiring 3,548 photobooths from FUJI in September 2023, making it the leading operator in the Japanese photobooth market, with over 15,000 machines in operation.

Expanding the Group's laundry operations remains a priority, with more than 820 Revolution machines installed during the year, totalling 5,533 machines operated by the Group, representing 16% growth.

The Group maintains a solid financial position, with approximately £34.3 million in net cash and £4.3 million in convertible bonds as of October 31, 2023. During the year, the Group repurchased £1.7 million of its ordinary shares and paid dividends totalling £13.6 million, including a special dividend for 2022.

ME Group share price chart. 

The ME Group share price dropped 9.32% to trade at 121.60p from Wednesday’s closing price of 134.10p.