ME Group, the UK operator of instant-service equipment, recorded a slight increase in first-half revenue, with sales rising 0.3% year-on-year to 3154.3 million.
Despite the small uptick in turnover, the company reported declines in profitability metrics. Diluted earnings per share dropped 3.9% compared with the same period a year earlier, while profit before tax decreased 3.8% to 332.7 million.
The revenue improvement was concentrated in the companys laundry operations. Wash.ME vending revenue expanded by 16.3% over the period, and ME Group added 499 net new machines across locations. That growth in laundry vending was the primary contributor to the headline increase in revenue.
By contrast, photobooth activity weakened in parts of ME Groups footprint. Photobooth revenue fell 6.2% during the half, a decline the company attributed principally to regulatory changes in Germany and softer demand in several markets, with April singled out as a particularly weak month for that segment.
ME Group also reduced equipment sales during the half as it prioritised operating higher-margin instant-service equipment over selling units. Equipment sales revenue declined 14.2% as a result of that strategic emphasis on operations rather than disposals.
Looking ahead, ME Group left full-year profit before tax guidance for 2026 in a range of 369 million to 374 million. The company set an approximate target of 1,300 laundry machine installations for fiscal year 2026 and indicated an expectation that trading patterns would return to normal in the second half of 2026.
Operational context
- Laundry vending is the principal driver of the modest revenue increase, with substantial net new machine placements.
- Photobooth revenues were pressured by regulatory shifts in Germany and by weaker market demand in some periods, notably April.
- A strategic shift toward operating instant-service equipment rather than selling it contributed to a fall in equipment sales revenue.
ME Groups first-half results point to a business with mixed momentum across divisions: growth in the Wash.ME vending arm offset by declines in photobooth receipts and equipment sales. The companys guidance for 2026 and its installation target provide a clear set of operational milestones to watch as it seeks to return to more typical trading patterns in the latter half of the year.