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ME Group
Annual Report 2022
60 years
of innovation
We have changed our name from
Photo-Me International to ME Group.
60 years of innovation
In August 2022 we completed our transition to our new identity with the change of
the Company name to ME Group International plc | LSE TIDM ticker: MEGP.
1
Over the last 60 years, the Group has evolved through innovation to expand and
diversify its operations internationally. ME Group, which stands for ‘Making Easy’
better reflects our mission to revolutionise local retail by bringing innovative
automated self-service solutions to consumers, delivered through a more
self-sufficient customer experience every day.
Our Company name change is an exciting and important milestone for the Group,
which will support our plans for growth and continued diversification to meet the
needs of customers and consumers today and in the future.
1
The Company was previously called Photo-Me International plc | LSE ticker: PHTM.
KIS joins Photo-Me
1994
Photo-Me International plc is listed
on the London Stock Exchange
1962 1981
Invention and launch of
the minilab, the first
minute photo printing
machine (in 1 hour)
Serge Crasnianski
founds KIS, and invents
Astro the first minute
key machine
1963
Photo-Me International plc
changes its listed entity nameto
ME Group International plc
2022
Launch of Iconic photobooth,
Starbooth designed by
Philippe Starck
2011
Launch of new Revolution
self-service laundry concept
2012
Launch of encrypted
photo ID technology
for passport renewal
2017
Acquisition of Sempa and launch
of fresh orange juice machines
2019
ME Group plc Annual Report 2022
1
Contents
OUR BUSINESS
2022 in summary 2
Business at a Glance 3
Photo.ME 4
Wash.ME 5
Print.ME 6
Feed.ME 7
STRATEGIC REPORT
Chairman’s Statement 10
Business Model and Strategy 14
Five-year growth strategy 16
Outlook 17
Investment priorities by business area 18
Chief Executive’s Report 20
Innovation and diversification 28
Review of performance by geography 30
Section 172(1) statement 34
Principal risks 38
Sustainability Statement 42
Viability Statement 63
CORPORATE GOVERNANCE
Board of Directors & Company Secretary 66
Report of Directors 68
Corporate Governance 73
Statement of Directors’ Responsibilities 80
Directors’ Remuneration Report 82
Remuneration Policy Report 85
Annual Report on Remuneration 90
FINANCIAL STATEMENTS
Independent auditor’s report to the
members of ME Group International plc 102
Group Statement of Comprehensive Income 110
Group Statement of Financial Position 111
Company Statement of Financial Position 112
Group Statement of Cash Flows 113
Company Statement of Cash Flows 114
Group Statement of Changes in Equity 115
Company Statements of Changes in Equity 116
Notes to the Financial Statements 117
Company Information & Advisers 177
Shareholder Information 178
PROFIT BEFORE TAX
2
£53.4m
2021: £28.6m
PROFIT AFTER TAX
£38.8m
2021: £21.9m
TOTAL DIVIDEND PER
ORDINARY SHARE
3
12.10p
2021: 2.89p
NET CASH
3
£34.0m
2021: £34.9m
EARNINGS PER SHARE
(
DILUTED
)
10.23p
2021: 5.77p
REVENUE
£259.8m
2021: £214.4m
CASH GENERATED
FROM OPERATIONS
£87.9m
2021: £66.1m
EBITDA
1
£92.2m
2021: £65.1m
GROSS CASH
4
£136.2m
2021: £99.4m
Key financial
For the 12 months ended 31 October 2022
Highlights
Strong financial performance was driven by increased
demand and a progressive increase of prices, particularly
for photobooth and laundry services, across Continental
Europe and in the UK & Republic of Ireland
Photo.ME revenue increased by 25.2% to £154.3 million
as activity continued to recover following the easing of
travel and social restrictions across most territories
Wash.ME revenue increased by 14.0% to £61.8million
reflecting the successful rollout, and uptake, of higher
cost-per-use laundry machines. e total number of units
in operation increased by 16.1% to 4,754as the Group
continued its strategic expansion of the estate
Print.ME revenue decreased due to the removal of
unprofitable machines. Replacement of 500 machines
with newer model commenced in H2
1
EBITDA is Reported profit before tax, total depreciation and amortisation, other net gain, finance cost and income
2
Includes impairments and provisions
3
Net cash excludes investments in convertible bonds (£4.3m) and lease liabilities (£15.9m). See note 19 for details of net cash
4
Special dividend paid on 1 September 2022 (£24.57m), Interim Dividend paid on 3 November 2022. Declared Final Dividend
will be paid on 12 May 2023, subject to approval at the AGM
5
South Korea subsidiary sold in November 2022. Following this disposal the Group has operations in 19 countries
Feed.ME pizza vending business underwent a
transition period, including reorganization of the
sales teams and upgrading technical soware across
our pizza vending estate
Continued to execute innovation and diversification
strategy to meet ever-changing consumer needs,
including the launch of new self-service machine
formats and liveness detection technology to
mitigate photo ID manipulation
Company name changed to ME Group International
plc (previously Photo-Me International plc), to better
reflect the Group’s operations today evolution of the
Group over the past 60 years through innovation to
expand and diversify its operations internationally
ME Group plc Annual Report 2022
2
Our business
2022 in summary
ree core geographies
Our purpose:
To create eco-responsible local
services that make everyday life easier.
VENDING UNITS
IN OPERATION
43,910
R&D CENTRES
2
Situated in France (primary facility),
and Vietnam, supported by a team
of more than 50 engineers
OPERATIONS IN
20 countries
5
Australia, Austria, Belgium, China, Finland, France, Germany, Ireland, Italy,
Japan, Morocco, Netherlands, Poland, Portugal, Singapore, South Korea, Spain,
Switzerland, United Kingdom, and Vietnam
UK & Republic of Ireland
Continental Europe
Asia Pacific
Four principal business areas
Photobooths and
integrated biometric
identification solutions
High-quality digital
printing kiosks
Unattended laundry
services and launderettes
Vending equipment for
the food service market
Print.
Business at a Glance
ME Group plc Annual Report 2022
3
Our business
Business at a Glance
Photo.ME
Photobooths with integrated
biometric photo identification
solutions.
A global leader in the photobooth market for
instant photo ID, portraits and fun photographs
with an established network of nearly 28,000
photobooths offering market-leading photographic
quality and technology.
Services primarily aimed at the consumer market,
with photobooths typically located in high-footfall
locations such as supermarkets, shopping
centresand transport hubs that provides
convenient access.
Work closely with national institutions to ensure
compliance with government Photo ID standards
and security requirements.
Our operations
Photo.ME offers:
Integrated proprietary soware ensuring all photo ID conform to
International Standards Organisation (ISO) and International Civil
Aviation Organisation (ICAO) regulations.
Secure digital Photo ID technology providing solutions to
governments seeking to improve and digitalise security ID to
combat fraud and security threats, including biometric data
capture, secure and direct transfer of data to government
serversand 3D facial image capture via our photobooths.
Agreements in place with governments for the direct and secure
upload of photographs from our photobooths to their servers for
official documents.
e Group pays the site owner a percentage of machine turnover
or a fixed fee or a combination of these metrics.
GROUP TOTAL VENDING ESTATE
62.9%
PHOTOBOOTH UNITS
IN OPERATION
27,625
PHOTOBOOTH PRESENCE IN
20
countries
1
Australia, Austria, Belgium, China, Finland, France,
Germany, Ireland, Italy, Japan, Morocco,
Netherlands, Portugal, Singapore, South Korea,
Spain, Switzerland, the United Kingdom, Vietnam
REVENUE
2
25.2%
2022: £154.3m
2021: £123.2m
1
South Korea subsidiary sold in November 2022.
Following this disposal the Group has operations
in 19 countries
2
For the 12 months ended 31 October
ME Group plc Annual Report 2022
4
Our business
Wash.ME
Unattended 24/7 laundry services
andlaunderettes.
Large-capacity, energy-saving rapid unattended
laundry services aimed at consumers and B2B market.
Growing network of more than 4,750 Revolution units.
Key markets include France, the United Kingdom, the
Republic of Ireland, and Portugal.
Our operations
Revolution laundry services offer:
24/7 outdoor self-service machines, typically located on high-
footfallsites such as car parks, petrol forecourts, campsites and
university campuses.
Self-service launderette shops offer convenient and competitively
priced large-capacity, self-service laundry amenities, typically
locatednear town centres in France, Japan, Portugal, Republic of
Ireland and the United Kingdom.
e Group pays the site owner a percentage of machine turnover
or a fixed fee or a combination of these metrics.
GROUP TOTAL VENDING ESTATE
REVOLUTION LAUNDRY UNITS
INOPERATION
4,754
OPERATIONS IN
12 countries
Austria, Belgium, China, France, Germany, Ireland,
Japan, Netherlands, Portugal, Spain, Switzerland,
United Kingdom
REVOLUTION REVENUE
1
26.6%
2022: £56.7m
2021: £44.8m
1
For the 12 months ended 31 October
10.8%
ME Group plc Annual Report 2022
5
Our business