ME Group International (MEGP) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was £154.3m, up 0.3% year-over-year, with EBITDA rising 7.1% and profit before tax down 3.8%, driven by laundry operations and offset by photobooth declines from regulatory and geopolitical factors.

• Strategic partnerships included major deals with ASDA in the UK and contract renewals in France, supporting expansion.

• Strategic focus shifted toward operational revenue, reducing equipment sales.

• Interim dividend declared at 3.60p per share, returning £13.5m to shareholders.

• On track to meet revised FY 2026 profit before tax guidance of £69–74 million.

Financial highlights

• EBITDA margin improved to 36.9% (from 34.7%), with laundry EBITDA margin at 51.2%.

• Profit before tax declined 3.8% to £32.7m, impacted by lower equipment sales, higher depreciation, and absence of prior year one-off gain.

• Diluted EPS was 6.48p, down 3.9% from H1 2025.

• Cash generated from operations was £38.7m, down 18.9% due to increased inventory and working capital.

• CapEx rose nearly 18% to £33.9m, focused on laundry and photobooth expansion.

Outlook and guidance

• FY 2026 profit before tax expected in the range of £69m–£74m, with trading patterns normalizing after April softness.

• Laundry expansion remains a key focus, targeting c.1,300 net new machines for the year and continued rollout of the Wash.ME app.

• Guidance remains conservative, reflecting macroeconomic and geopolitical uncertainties.