ABOUT ME – STRATEGY AND BUSINESS MODEL
We develop new and complementary products to drive future growth
ME Group’s growth strategy is focused on diversifying our product portfolio, expanding the number of units in operation, and increasing the yield per unit. This is underpinned by our disciplined approach to minimising production and operational costs, enabling us to capitalise on operating leverage.
We enhance shareholder value by investing in new technologies that develop new and complementary products and services so they can be rapidly deployed across existing and new geographies and provide a rapid and sustainable return on investment.
We use cash flow generated by our long-established operations, such as photobooths and kiosks, to invest in future growth.
Our growth strategy
1
Expansion in existing and new geographic territories
2
Entering new market segments
3
New product and technology innovation
4
Continued expansion and diversification of services
5
Strategic mergers and acquisitions
ME Group’s growth strategy is primarily focused on growing our core business areas, which are laundry and photobooth operations, as we utilise and reinvest cash generated from our operations to drive future growth and returns.
Our business model delivers our strategy and value for all stakeholders
1. Strong financial position
Our strong financial position as highly cash generative operations, provide predictable cash flows and allow us to fund our capital expenditure programme and invest in future growth, alongside creating value for our shareholders. In 2024, £107.4 million of cash was generated from operations.
2. Long-standing site partnerships
We have well-established long-term partnerships and long-term contracts with site owners in attractive, high-footfall locations, enabling us to offer multiple products and services onsite as well as providing good revenue visibility. Our machines are maintained by our 650-strong network of field engineers, minimising downtime and giving us operational leverage.
3. Laundry opportunity
Our laundry operations are rapidly growing, with further opportunities for expansion across existing and new markets, underpinned by a market-leading offer and strong customer demand, whilst providing site owners with a unique opportunity to expand available services which drive site footfall. A record number of machines were installed in 2024, with a long-term target of installing 20,000+ machines globally.
4. Established photobooths estate
Our network of photobooths offers consumers market-leading digital photo ID services for official documents. Our photobooth estate is highly cash-generative.
5. Asset lifecycle
Our machines are designed to operate over an extensive lifecycle which, in turn, generates long-term profitable performance, supported by low incremental costs for maintenance and technological upgrades to provide a high standard of service and best-in-class user experience for consumers.
6. Entrepreneurial spirit
Proven track record of innovation and diversification of services in response to the evolving needs of our customers and consumers. Our two R&D centres are pivotal in driving the advancement of new products and technologies, supported by investment from our strong levels of cash flow, helping to create long-term value for investors.
Expansion in existing and new geographic territories
Entering new market segments
New product and technology innovation
Continued expansion and diversification of services
Strategic mergers and acquisitions
Innovation and diversification
New product innovation is at the core of ME Group. Our growth strategy is to focus on diversifying our operations and responding to consumer needs.
