Updates

ME Group - Lifted guidance implies 40%+ PBT uplift

August 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares soared to 170p after ME issued a positive trading update for the period to April, which noted first half sales rose more than 24% and pretax profit 35% year-on-year. As a result its guidance for sales this year has been raised to £300-£320m, with EBITDA £100m-£110m and pretax profit £64m-£67m. That compares with just £260m, £84.3m and £46.6m the previous year. Both the photo ID side (sales +25% in H1) and laundry (sales +36%) performed well. Interestingly, the latter is really cranking up the pace of expansion with a target of 80-90 units per month (capex: £23m) in FY 23 versus 70 per month in FY 22 and a base of 4,754. At the same time it is investing c. £17.5m this year rolling out the next generation of photobooths w ...

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ME Group - New Peel Hunt note has 350p price target (August 2024)

ME Group - Highly profitable laundry business accelerating roll-out (April 2024)

ME Group - Profit at top end of guidance (January 2024)

ME Group (September 2023)

ME Group (April 2023)

ME Group (Photo-Me) - Announces 6.5p special dividend (September 2022)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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