ME Group International (LON:MEGP) Announces Earnings Results

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

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 Stock Performance

Shares of MEGP traded up GBX 9.60 during mid-day trading on Monday, reaching GBX 113. The stock had a trading volume of 6,245,253 shares, compared to its average volume of 3,215,954. The business has a fifty day moving average of GBX 119.91 and a 200 day moving average of GBX 133.97. The firm has a market cap of £423.35 million, a price-to-earnings ratio of 7.58 and a beta of 0.49. ME Group International has a 12 month low of GBX 98.50 and a 12 month high of GBX 228.

Analysts Set New Price Targets

MEGP has been the subject of several research analyst reports. Peel Hunt reaffirmed a “buy” rating and issued a GBX 230 price objective on shares of ME Group International in a report on Monday. Canaccord Genuity Group reissued a “buy” rating and issued a GBX 220 target price on shares of ME Group International in a report on Friday, March 27th. Two analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of GBX 225.

ME Group International declared that its board has authorized a share buyback program on Monday, March 23rd that permits the company to repurchase 0 shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

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.