ME Group International plc (MEGP.L) Stock Analysis
A misunderstood “old photo booth” business is quietly compounding into a high-margin automated-services platform—if laundry scale-out outruns ID regulation risk.
Overview
ME Group International (formerly Photo-Me) operates a global estate of 48,000+ automated instant-service units across 16 countries, using a concession model that monetizes high-footfall retail/transport locations with minimal burden on site owners. FY25 marked the fourth consecutive year of record profitability: revenue £315.4m (+2.4% reported; +3.0% constant currency), EBITDA £120.4m (+5.4%), and PBT £78.2m (+6.5%), with margin expansion to 38.2% driven by a growing contribution from Wash.ME. The company is in a strategic pivot from legacy biometric photobooths (still large at £166.2m revenue) toward unattended outdoor laundry (Wash.ME £112.4m revenue, high margins, rapid rollout), alongside smaller high-margin kiosks (Print.ME) and diversifiers (Kee.ME key duplication, Feed.ME pizza vending). The investment debate centers on whether the market continues to misprice ME as a declining analogue business, or re-rates it as a high-margin automated-services compounder as laundry scales and buybacks amplify EPS.