London-listed firm cheers surge in demand for ‘dog wash machines’
Europe’s biggest photobooth operator has expanded into user-operated dog washing machines in a bid to recover from an Iran war hit to profit.
ME Group, which operates laundry machines and photo booths across the UK and Europe, said it is rolling out hundreds of dog wash machines in a bid to drive growth.
The FTSE 250 firm has installed 200 of these products across the UK, France and the Republic of Ireland, noting that they “are proving popular with customers”.
The novel machines, which resemble automated carwashes, offer a range of products including shampoo, conditioner and anti-parasitic treatment.
A wash – priced at €10 for a small dog and €15 for a big dog – can cost as little as 10 per cent of the price of a professional dog grooming service, the group said.
“Innovation and diversification remain a key part of our strategy, ensuring that we continue to meet the needs of our consumers every day, as evidenced by the recent rollout of our new dog wash machine,” chief executive Serge Crasnianski said.
Shares in ME Group rocketed by more than 14 per cent on Monday’s market open, to 118p, leaving the stock down 19 per cent in the year to date.
The firm’s revenue slipped one per cent to £152m on a constant currency basis in the six months to the end of April, as pre-tax profit fell six per cent to £32m, it said on Monday.
Iran war triggers selfie slump
Last month, the firm revealed that its revenue had slipped by as much as 17 per cent in April, owing to a slump in demand for selfies which it blamed on the Middle East conflict.
The global reduction in travel caused by the Iran war had led to a drop-off in need for passport photos, the Surrey-based group said.
During this announcement in June, the company cut its profit expectations to between £69m and £74m. The group reiterated this forecast on Monday.
The firm said its growth is also being driven by its laundry business, Wash.ME, with revenue jumping by 16 per cent to £55m in the six months to April.
The group has signed a deal with budget supermarket Asda to install and operate laundry machines across its UK stores, which the firm said is the biggest partnership agreement in its history.