Me Group expects to miss revenue targets, but profits in line

(Sharecast News) - Vending machine operator Me Group International said it expects to deliver annual revenues below guidance despite a record financial performance for the year. In a year-end trading update for the 12 months to 31 October, the company said revenues will be "marginally below" the lower end of the previous guidance range of £300m to £320m but no less than £298m. That's compared to revenues of £259.8m the previous year.

Me Group, which operates photobooths, laundry services, printing kiosks and food vending machines across 19 countries, said it continued to see positive trading momentum in the second half, with strong consumer demand in photobooths and laundry services in particular.

"The group expects to have delivered a record financial performance for the year, despite some operational challenges within its Feed.ME division, which has since been reorganised," the company said.

However, its focus on profitability means EBITDA will be "significantly above £100 million", in line with the guidance range of £100m to £110m. Pre-tax profit will be at the top end of the guidance range of £64m to £67m.

Annual results will be published in February 2024.