Me Group International
Website:
Me Group International
Index:
FTSE 250
EPIC: MEGP
Supersector:
Technology
Sector:
Technology Hardware and Equipment
Subsector:
Electronic Office Equipment
Market Cap:
£596.05M
Payout Frequency: Semi-Annual
Me Group International Dividend Analysis and Summary
Declared Dividend (Interim)
- Dividend per share: 3.85p (Interim)
- Year-on-year change: +11.6% (vs 3.45p in H1 2024)
- Cash outlay: ~£14.5m to shareholders
- Ex-dividend date: 06/11/2025
- Record date: 07/11/2025
- Payment date: 28/11/2025
- Stated policy: pay >55% of annual profits after tax as dividends
- Earnings cover (H1 basis): DPS 3.85p vs diluted EPS 6.74p ? cover ~1.75x
Financial Backing and Coverage
- H1 profitability: Revenue £153.8m (+2.3%), EBITDA £53.2m (+3.9%), PBT £34.0m (+13.3%), PAT £25.6m (+13.3%).
- Cash generation: Cash from operations £47.6m (+14.1%).
- Balance sheet: Gross cash £74.9m; net cash (ex-leases) £36.2m (vs £21.7m in H1 2024).
- Capital deployment in H1: Capex £28.8m (growth-led), loan repayments £11.0m, dividends paid £13.0m.
Outlook and Dividend Trajectory
- Guidance: Board expects FY2025 PBT of £76–£80m (record year).
- Indicative DPS potential from policy: Using H1 effective tax rate (~24.8%), FY2025 PAT could be ~£57–£60m; at >55% payout, total FY2025 dividends imply roughly 8.3–8.8p. With an interim of 3.85p, this points to a possible final dividend in the region of ~4.5–5.0p (indicative, not guidance).
- Growth engine: Laundry (Wash.ME) continues to scale (vending revenue +13.3%; EBITDA +20.4%), supporting medium-term dividend growth capacity.
Capital Allocation and Policy Support
- Clear allocation priorities: reinvest in high-return laundry and next-gen photobooths while maintaining a progressive dividend aligned to a >55% PAT payout.
- Coverage: Interim dividend is covered by H1 earnings and supported by strong operating cash flow and net cash position, despite elevated growth capex.
Structural Changes and Notable Items
- Strategic review: On 18/06/2025 the Group began evaluating options to enhance shareholder value, including seeking potential offerors. No firm offers received. Any transaction could alter dividend policy or timing.
- Small bolt-on M&A: Acquisition of APS in Belgium (116 photobooths) funded from cash; modest, earnings-accretive profile, supportive of cash generation.
- Non-core asset disposal: Grenoble office sold (gain recognised), modest positive for liquidity.
- No demerger or share consolidation disclosed.
Risks and Flags for Dividend Stability
- FX headwinds: Significant non-UK exposure; stronger GBP can dampen reported earnings and dividend capacity in GBP.
- Regulatory risk in ID photos: Potential for government centralisation of ID image capture in key European markets; mitigated by ME’s secure booth-to-administration integrations but remains a structural risk to photobooth revenues.
- Operational execution: Recent printer supplier issue (now resolved) shows supply-chain/technology risk; continued large-scale rollout increases execution dependencies.
- Capital intensity: Ongoing high capex (and £35.9m committed) to fund growth; manageable given cash generation, but could temporarily tighten free cash cover if conditions soften.
- Customer/site-owner concentration: Loss or renegotiation of key site contracts can affect segment revenues (e.g., prior UK contract end impacted photobooth count).
- Strategic review uncertainty: A potential offer process could lead to a change in dividend policy, timing, or a suspension depending on transaction structure.
Read more
Me Group International Annual Dividend Yield - 5.25%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
23/05/2025 |
Final |
4.45p |
GBX |
| 06/11/2025 |
28/11/2025 |
Interim |
3.85p |
GBX |
Total (Annual Dividends Per Share):
8.30p
Dividend Yield =
Annual Dividends Per Share (8.30p)
÷ Share Price (158p)
= 5.25%
Me Group International Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 06/11/2025 |
28/11/2025 |
Interim |
3.85p |
GBX |
| 24/04/2025 |
23/05/2025 |
Final |
4.45p |
GBX |
| 07/11/2024 |
29/11/2024 |
Interim |
3.45p |
GBX |
| 25/04/2024 |
23/05/2024 |
Final |
4.42p |
GBX |
| 02/11/2023 |
23/11/2023 |
Interim |
2.97p |
GBX |
| 27/04/2023 |
19/05/2023 |
Special |
0.60p |
GBX |
| 20/04/2023 |
12/05/2023 |
Final |
3.00p |
GBX |
| 13/10/2022 |
03/11/2022 |
Interim |
2.60p |
GBX |
| 13/10/2022 |
03/11/2022 |
Q2 |
2.60 |
|
| 11/08/2022 |
01/09/2022 |
Special |
6.50p |
GBX |
| 14/04/2022 |
13/05/2022 |
Final |
2.89p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
3.450 |
4.420 |
|
GBX |
7.870 |
19.780 |
| 2023 |
2.970 |
3.000 |
0.600 |
GBX |
6.570 |
-54.960 |
| 2022 |
2.600 |
2.890 |
6.500 |
|
14.590 |
|
Me Group International Dividend Calculator
Me Group International Dividend Growth
| Dividend Growth (1Y) |
5.46%
|
| Dividend CAGR (5Y) |
23.49%
|
| Years of Growth |
1
|
| Payout Ratio |
51.95%
|
| Buyback Yield |
-0.09%
|
| Shareholder Yield |
4.86%
|
| P/E Ratio (TTM) | 10.49 |
|---|
| Forward P/E | 10.53 |
|---|
| P/FCF | 15.35 |
|---|
| Earnings Yield | 9.57% |
|---|
| FCF Yield | 6.52% |
|---|
| ROE | 31.56% |
|---|
| ROCE | 33.41% |
|---|
| Profit Margin | 18.33% |
|---|
| Operating Margin | 24.91% |
|---|
| Gross Margin | 36.9% |
|---|