ME Group — Recovery on track after April’s setback

ME Group (LSE: MEGP)

Last close As at 13/08/2026

GBP1.18

−0.20 (−0.17%)

Market capitalisation

GBP444m

More on this equity

Research: Consumer

ME Group — Recovery on track after April’s setback

ME Group is a highly cash-generative business by design: revenue from a machine installed in a high-footfall location is relatively predictable, the marginal cost of each additional transaction is minimal and maintenance is serviced by the same engineers. Despite weaker trading in April, which management attributes to a temporary shift in consumer sentiment rather than any loss of competitive position, trading has since recovered, with total vending revenue up 11.1% y-o-y in May, the improvement continuing through June and management reiterating its full-year guidance.

Written by

Russell Pointon

Director of Content, Consumer and Media

Consumer

QuickView

24 July 2026

Price 110.60p
Market cap £423m
Price Performance
Share details
Code MEGP
Listing LSE

Shares in issue

374.6m

Net cash/(debt) at 30 April 2026

£7.5m

Business description

ME Group operates, sells and services instant-service vending equipment, principally Photo.ME photo booths and integrated biometric ID solutions and Wash.ME unattended laundry services, across Continental Europe, the UK and Republic of Ireland, and Asia-Pacific.

Bull points

  • High-quality vending model with recurring, cash-generative revenue
  • Long-term contracts with major high-footfall site owners (eg SNCF, RATP, Shell, Morrisons).
  • High growth potential from high-margin laundry estate expansion, supported by new partnerships (ASDA and Aldi).

Bear points

  • Vulnerable to changes in consumer discretionary spending, travel activity and geopolitical uncertainty.
  • Structural and regulatory risk to photo booth ID revenue from government changes to passport photo requirements (eg Germany, Japan).
  • Majority of revenue and profit earned in euro and yen, so exposed to sterling FX translation swings.

Analysts

Russell Pointon
+44 (0)20 3077 5700
Chloe Wong
+44 (0)20 3077 5700

EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.

Continued focus on expansion

The cash-generative Photo.ME estate, the group’s largest single revenue contributor despite regulatory pressure in Germany, remains its main source of funding, with that cash reinvested into the faster-growing, higher-margin laundry expansion plan, alongside dividends and buybacks. Management is confident that it is on track to install c 1,300 laundry machines in FY26, supported by the ASDA partnership, its largest-ever laundry partnership deal with an ambition of up to 700 machines, and an Aldi Austria trial for both laundry and photo booths. Separately, the group renewed multi-year photo booth contracts with SNCF and RATP spanning five and seven years.

Lessening macroeconomic pressure

The slowdown that triggered June’s profit warning was concentrated in April, when Photo.ME revenue fell 17% y-o-y on reduced demand for official photo ID amid travel uncertainty linked to the Middle East conflict, and Wash.ME growth slowed sharply to 3%. Management points to the swift recovery already evident in May and June, with Wash.ME revenue growth back above 25%, as evidence that the episode was temporary. Management is taking a cautious view of the full-year outlook given the conflict remains unresolved.

Valuation

The shares trade on an attractive FY26e P/E of 8.1x, falling to 7.2x in FY27e, with a prospective yield of 7.0% rising to 7.7%, underpinned by a policy of paying out more than 55% of earnings.

Source: ME Group, LSEG Data & Analytics

Consensus estimates

Year end Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) DPS (p) P/E (x) Yield (%) EV/EBITDA (x)
10/24 307.9 114.2 73.4 14.27 7.90 7.8 7.1 3.6
10/25 315.4 120.4 78.2 14.91 8.64 7.4 7.8 3.5
10/26e 319.8 117.2 69.8 13.65 7.70 8.1 7.0 3.5
10/27e 342.2 126.7 78.2 15.45 8.50 7.2 7.7 3.3

General disclaimer and copyright

This report has been prepared and issued by Edison. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2026 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on ME Group

View All

Latest from the Consumer sector

View All Consumer content

Research: TMT

Team Internet Group — Improving trends continue

Team Internet’s H1 trading update indicates that performance remains in line with the improving trends previously communicated. Domains, Identity and Software (DIS) and Comparison are delivering strong EBITDA growth and margin expansion, while Search has completed its transition to Related Search on Content (RSoC) and returned to EBITDA profitability in June. The strategic review of DIS is ongoing and management continues to expect an outcome during 2026, supported by DIS’s strong financial performance. Our estimates are unchanged but, given the seasonal H2 weighting and elimination of the drag from losses at Search, look well supported at the profitability level. Our sum-of-the-parts valuation range of 54–68p still appears appropriate, with catalysts for further upside.

Continue Reading
Cookie Policy Overview
Edison Group

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which section of the website you find more interesting and useful. See our Cookie Policy for more information.

Strictly necessary and functional

These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.

Advertising

Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.

Performance

Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.