The FTSE 250 company ME Group, known for its photobooth operations across the UK and Europe, has revealed a significant increase in demand for its user-operated dog washing machines. The introduction of these automated units comes as the firm navigates a challenging period, characterised by a one per cent decline in revenue to £152m on a constant currency basis in the six months to the end of April, alongside a six per cent fall in pre-tax profit to £32m.
The company has installed 200 dog wash units across the UK, France and Ireland, offering services including shampoo, conditioner and anti-parasitic treatments at prices significantly lower than those charged by professional groomers. For instance, a small dog wash costs as little as €10 (approximately £8.50), while a larger dog wash is priced at €15 (£12.60). This move towards diversification is part of ME Group's broader strategy to drive growth and mitigate the impact of external pressures on its core business.
A notable factor contributing to the financial dip was a significant decline in demand for passport photos, which ME Group attributed to a reduction in global travel. As a result, photobooth revenue fell by as much as 17 per cent in April. In contrast, the company's laundry division, Wash.ME, has shown robust growth, with revenue increasing by 16 per cent to £55m in the six months to April. This business has also secured a substantial partnership with budget supermarket Asda to install and operate laundry machines across its UK stores.
ME Group shares have experienced significant volatility this year, shedding 30 per cent of their value year-to-date and closing at 103p on Friday. The company's focus on diversification underscores an effort to meet evolving consumer needs and offset the challenges faced by its core photobooth business. Investors will be closely monitoring whether the success of the new dog wash machines and continued growth in the laundry sector can have a positive impact on the company's performance.