ME Group International showcased a robust performance in its 2025 annual report, celebrating unprecedented profitability and substantial growth within its Wash.ME laundry services. The company also highlighted continuous strategic investments aimed at modernizing its photobooth technology. Key executives provided insights into the financial achievements, capital allocation, a notable dividend increase, and the strategic pivot toward expanding its laundry operations, even as its traditional photobooth sector encountered certain challenges.
The company's leadership announced a 6.5% rise in pre-tax profit year-over-year, which translated to a 7% increase when accounting for constant currency rates. Operational cash generation reached an impressive £115.5 million, marking almost a 9% improvement from the previous year. Total revenue saw a 2.4% uptick, or 3% at constant currency, while group EBITDA grew over 5%, hitting 6% at constant currency, largely propelled by a 17% surge in laundry EBITDA.
Capital expenditure climbed by 20% to £65 million, a planned increase predominantly channeled into growth initiatives. This investment was strategically divided: £32 million fueled laundry expansion, £13 million was allocated for photobooth upgrades, and £7 million was used to refresh printing kiosks. Despite these significant investments, net cash experienced a modest 3% reduction, closing at £26.5 million by October 31, 2025. It was also noted that certain cash-related figures for 2024 were reclassified due to a technical accounting adjustment involving cash in transit.
Shareholders are set to receive a total dividend of £0.0864 per share for 2025, representing a 9.5% increase from the prior year. In total, ME Group plans to return £32.6 million to its shareholders for the 2025 fiscal year. The company underscored its extensive network of over 49,000 automated service machines spread across 16 countries, operating on a revenue-sharing model with site partners. Its primary business segments remain photobooths and laundry, complemented by services like printing kiosks, children's rides, photocopying, and food service equipment.
Management emphasized a strategic pivot towards laundry services, noting its increasing contribution to revenue and EBITDA. In 2021, laundry accounted for approximately a quarter of vending revenue, a figure that has now surpassed a third. Furthermore, laundry's share of group EBITDA escalated from just over a third in 2021 to nearly half in 2025, underscoring the higher profitability of this segment. Despite the rapid growth in laundry, the company clarified that photobooths are not in structural decline, citing a 35% revenue increase since 2021, with 2025's lower performance attributed to specific, temporary challenges.
Several factors contributed to a £7 million reduction in photobooth revenue in 2025, including a temporary supplier issue with printers, the conclusion of a UK contract in 2024, and new German regulations for official ID photos implemented in May 2025. These regulations led to a 20-30% volume decrease in Germany, though volumes have since stabilized, indicating the photobooth business's diverse applications beyond passport photos. Continental Europe remains a dominant market, contributing over half of the vending estate and a significant portion of group revenue and EBITDA, with laundry vending revenue growing by nearly 7% in the region. The UK and Ireland also saw a revenue increase of almost 2%, largely due to a substantial rise in Wash.ME vending revenue, bolstered by new machine installations. Performance in these regions was resilient, even amidst softer demand during warm summer months, which typically reduces dryer usage.
The company achieved a record number of Wash.ME installations in 2025, deploying 1,326 new laundry machines, a significant increase from previous years, with plans to install over 1,300 new machines in 2026. This expansion contributed to a 17.3% rise in laundry revenue and an 18.1% increase in laundry EBITDA, reaching an impressive 49.4% EBITDA margin. ME Group also launched a new WashMe app, which has quickly gained over 60,000 users and is set for broader rollout. Additionally, the company continues to advance its photobooth offerings, deploying next-generation units with new generative AI capabilities and experimental photo products. Pricing adjustments for ePhoto products are planned in France to align with international rates. The company also provided insights into unit costs for laundry machines and photobooths, detailing investments required for each.
Looking ahead, ME Group's trading performance in the initial five months of 2026 is aligning with expectations. The company is committed to further expanding its Wash.ME services, rolling out its new app across key markets, continuing the deployment of dog wash machines, and installing KeyMe cutting machines in France. Furthermore, ME Group announced an £18 million share buyback program, aiming to repurchase between 15 million and 20 million shares. The delay in annual results was attributed to a new audit partner and an expanded scope of audited entities, leading to a substantial increase in information requests. The previously mentioned reclassification of cash figures was identified as a technical auditing adjustment involving cash in transit and credit card suspense. This multinational leader in automated self-service equipment, operating over 48,000 vending units across 16 countries, continues to innovate and diversify its offerings, building on well-established partnerships in high-traffic locations.