Key Highlights

  • ME Group International plc (LSE:MEGP) is listed on the London Stock Exchange Main Market with a Dividend Yield of 7.32%.
  • The total dividend for the year to 31 October 2025 rose 9.5% to 8.64p per share.
  • The final dividend of 4.79p was paid on 29 May 2026.
  • Pre-tax profit rose 6.5% to a record £78.2m, and Revenue rose 2.4% to £315.4m.
  • Laundry revenue grew 17% to £112.4m, and laundry EBITDA rose 18.1% to £55.5m.
  • An £18m share buyback runs until 31 December 2026.

Overview of ME Group International

ME Group International plc (LSE:MEGP), formerly Photo-Me International, operates instant-service equipment, including photobooths, Wash.ME laundry machines, Kee.ME key-cutting machines and printing kiosks, across the UK, France, Japan and other markets. Laundry has become its fastest-growing and most important division.

The 7.32% yield reflects a growing dividend and a share price that has fallen sharply in 2026.

Latest Results

ME Group published delayed annual results on 23 March 2026 after its auditor needed more time, which led to a temporary share suspension. The results showed record profitability: pre-tax profit rose 6.5% to £78.2m, EBITDA grew 5.4% to £120.4m and margins improved to 38.2%. Diluted EPS rose 4.5% to 14.91p. Laundry accounted for 46.1% of EBITDA, while photobooth performance was weaker.

Dividend Record

The group raised its total dividend 9.5% to 8.64p, returning £32.6m to shareholders. The final dividend of 4.79p, up 7.6% from 4.45p, was approved by 99.98% of votes at the AGM on 24 April 2026 and paid on 29 May 2026. An Interim Dividend is typically paid in November.

Dividend Cover

With diluted EPS of 14.91p and a dividend of 8.64p, cover is about 1.7 times, a comfortable level. Payout ratios have averaged around 52% to 55%.

Cash Flow and Buyback

The Business generates strong Cash Flow from its machine estate. Alongside the results, ME Group launched an £18m share buyback, run by Peel Hunt, until 31 December 2026. Buybacks at lower share prices boost earnings per share.

Laundry Growth Engine

The group installed a record 1,326 laundry machines in the year, taking its estate to 7,607 units, up 17.7%. Wash.ME revenue rose 10.2% to £100.8m. Laundry machines in supermarket car parks and petrol stations meet growing demand, especially in France.

Share Price Weakness

Despite record profits, the shares fell sharply in 2026, down about 27% year to date by mid-year, after the delayed results and concerns about photobooth trends. This decline is a key reason for the higher yield.

Innovation and Diversification

ME Group continues to innovate, with the rollout of its Kee.ME key duplication machine in France planned for the year ahead. Diversifying into new vending services reduces reliance on photobooths and leverages the group's experience in operating unattended machines in high-footfall locations. Chief executive and deputy chair Serge Crasnianski said he was highly confident in the strategy, financial position and market leadership.

Recurring Revenue Model

Each machine in the estate generates repeat revenue from everyday customer needs such as laundry, ID photos and keys. With thousands of machines across many countries, the income stream is diversified and relatively predictable, supporting a progressive dividend. Strong margins mean much of the revenue converts into cash.

Balance Sheet

The group has historically held net cash, giving it flexibility to fund machine rollouts, acquisitions, dividends and buybacks simultaneously.

Risks

Risks include photobooth decline as digital ID photos grow, governance concerns after the audit delay, and execution of laundry expansion. Founder Serge Crasnianski's large shareholding also concentrates control.

Market Sentiment

On analyst estimates, the shares trade on a single-digit forward earnings multiple. Sentiment has been mixed, with investors weighing record profits against governance questions. Analysts value the laundry growth story.

How MEGP Fits an Income Portfolio

ME Group offers a growing, covered dividend with a buyback, suitable for investors comfortable with some governance risk.

Acquisition Strategy

Management plans acquisitions closely related to its core business to expand services or presence, potentially through a new strategic division.

Dividend Sustainability Scorecard

  • Dividend: 8.64p, up 9.5%.
  • Cover: about 1.7 times.
  • Growth: laundry revenue up 17%.
  • Capital return: £18m buyback.
  • Key risk: governance and photobooth decline.

What Investors Should Watch

Watch the interim dividend in November 2026, laundry rollout, audit timing for FY26 results and buyback progress.

Is the 7.32% Yield Sustainable?

ME Group's dividend looks sustainable, well covered by record profits and growing laundry earnings. LSE:MEGP suits investors seeking a growing dividend at a reduced valuation.