ME Group International (LSE:MEGP), the instant-service vending and laundry equipment operator, reported revenue up 0.3% to £154.3 million for the six months to 30 April, against £153.8 million a year earlier.
EBITDA rose 7.1% to £57.0 million, holding the margin at 36.9%, while profit before tax fell 3.8% to £32.7 million.
April brought a slowdown in vending revenue, driven by a sharp drop in photobooth activity in a small number of countries which the company claimed can be attributed to the Middle East conflict, particularly in France, its largest market.
Laundry operations remained the small cap firm's growth engine, with Wash.ME vending revenue up 16.3% to £54.8 million and 499 net new machines installed, alongside a further roughly 800 planned for the second half to reach a 2026 target of 1,300 installations.
The group secured its largest-ever laundry partnership with ASDA in the UK, and renewed two French contracts, a seven-year deal with SNCF and a five-year deal with RATP, together worth more than £9.0 million in revenue.
"Despite a challenging end to the period, largely driven by the ongoing Middle East conflict, I am pleased that the group has continued to make good strategic progress", said chief executive Serge Crasnianski, noting laundry now contributes more than 38% of group revenue and 54% of EBITDA.
Trading has since improved, with May vending revenue up 11.1% year-on-year and Wash.ME up 25.9%, a trend that continued into June.
ME Group said it remains on track to meet revised full-year expectations, with profit before tax guided at £69 million to £74 million.
