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:
£542.56M
Payout Frequency: Semi-Annual
Me Group International Dividend Analysis and Summary
Headline dividend details
- Final dividend: 4.79p per share (FY25), subject to AGM approval on 24/04/2026
- Ex-dividend date: 07/05/2026
- Record date: 08/05/2026
- Payment date: 29/05/2026
- FY25 interim dividend: 3.85p, paid 28 Nov 2025 (ex-div 6 Nov 2025; record 7 Nov 2025)
- Total FY25 DPS: 8.64p (+9.5% YoY), equating to c.£32.6m cash returned
- Payout policy: >55% of profit after tax; FY25 payout = 58.0% of EPS
- EPS (diluted): 14.91p; dividend earnings cover c.1.7x
Dividend sustainability and coverage
- Earnings cover: Solid at ~1.7x, consistent with the stated >55% payout policy.
- Cash support: Net cash from operating activities of £90.8m comfortably covers the FY25 dividend cash out (~£32.6m). Operating cash generation was strong (£115.5m before tax/interest).
- Balance sheet: Positive net cash £26.5m at year-end provides additional headroom.
- Capex and FCF: Elevated growth capex (£65.6m in FY25) tightens free cash flow after investment; guidance for FY26 capex of £57–59m should ease pressure modestly.
Dividend growth trajectory and outlook
- Growth: Total DPS up 9.5% versus EPS growth of 4.5%, indicating confidence and adherence to the >55% payout framework.
- Operational backdrop: Laundry continues to drive growth (EBITDA +18.1%), offsetting photobooth headwinds; Board notes YTD FY26 trading is in line with expectations.
- Implication: With strong, recurring cash generation and slightly lower planned capex, mid-single-digit dividend growth appears supportable, assuming stable trading and execution on German photobooth upgrades.
Capital allocation and structural considerations
- Buyback: Launch of an £18m share buyback alongside dividends signals confidence and may enhance per-share dividend affordability over time.
- Investment: Continued high-return rollout in laundry; FY26 capex guided down vs FY25 yet remains growth-focused.
- M&A/strategy: Company will pursue acquisitions closely related to core operations; a small photobooth acquisition in Belgium completed in FY25. This could compete for cash with dividends if larger deals arise, though management stresses discipline.
- Listing status: Company expects restoration of listing/trading following Annual Report publication; not a direct change in dividend policy, but a consideration for timing/liquidity.
- Policy reaffirmed: Dividend policy maintained at >55% of PAT, underpinning a payout that tracks earnings.
Risks and flags relevant to dividend stability
- Regulatory risk (Germany): Photo ID regulation change hurt H2 FY25 and is expected to continue into FY26; mitigation via next-gen photobooths/biometric kiosks from H2 FY26. Execution/timing is a watchpoint.
- FX exposure: Majority of revenue/profit generated outside the UK; yen and euro movements can affect reported earnings and cash flow translation.
- Tax rate: Effective tax rate rose to 27.7% due to French reassessments; a persistently higher ETR would modestly pressure post-tax payout capacity.
- Capex intensity: Growth-led capex remains high; while returns are attractive, free cash flow after investment can be tight in heavy rollout years, especially alongside dividends and buybacks.
- Prior-period cash-in-transit restatement and prior suspension: No impact on earnings, but a reminder to monitor controls and disclosure. Restoration of trading expected.
Read more
Me Group International Annual Dividend Yield - 5.82%
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 (142.6p)
= 5.82%
Me Group International Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 07/05/2026 |
29/05/2026 |
Final |
4.7900p |
GBX |
| 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) |
9.37%
|
| Dividend CAGR (5Y) |
24.49%
|
| Years of Growth |
2
|
| Payout Ratio |
52.62%
|
| Buyback Yield |
-0.09%
|
| Shareholder Yield |
5.97%
|
| P/E Ratio (TTM) | 9.56 |
|---|
| Forward P/E | 9.11 |
|---|
| P/FCF | 18.71 |
|---|
| Earnings Yield | 10.54% |
|---|
| FCF Yield | 5.35% |
|---|
| ROE | 28.8% |
|---|
| ROCE | 31.19% |
|---|
| Profit Margin | 17.94% |
|---|
| Operating Margin | 24.51% |
|---|
| Gross Margin | 36.74% |
|---|