ME Group shares rallied on Monday after the photo booth and laundry group confirmed its full-year outlook.
Shares in ME Group International (MEGP.L) climbed sharply on Monday after the instant-service equipment operator said trading had improved through May and June, easing concerns that April’s slowdown would deepen further.
MEGP shares are trading at around 115p on Monday, up more than 11% from Friday’s close of 103.4p. The stock touched 122p earlier in the session before paring gains. Shares remain well below the roughly 229p level they traded at a year ago, and above the 98.5p low struck in early June, when the shares slid following the group’s initial guidance cut.
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In results for the six months to 30 April 2026, ME Group reported revenue up 0.3% to £154.3 million and EBITDA up 7.1% to £57.0 million, while pre-tax profit fell 3.8% to £32.7 million. The company said trading was in line with expectations for the first five months of the period, before a slowdown in April driven by weaker photo booth activity, particularly in France, its largest market, where consumer confidence was hit by the conflict in the Middle East.
Monday’s update did not bring a fresh downgrade. The board had already lowered its full-year profit guidance in June following the weak April trading, and Monday’s announcement confirmed the group remains on track to hit that revised range of £69 million to £74 million in pre-tax profit, down from £78.2 million last year, according to Proactive Investors. Total vending revenue rose 11.1% year-on-year in May, with the recovery continuing into June.
The group’s laundry arm, Wash.ME, remains the main growth driver, with revenue up 16.3% to £54.8 million and 499 new machines installed in the half, part of a plan to add around 1,300 over the full year. Laundry now makes up more than 38% of group revenue and 54% of EBITDA. The period also brought a new UK partnership with Asda and renewed multi-year contracts with French rail and transport operators SNCF and RATP. The interim dividend was cut 6.5% to 3.60p per share.
Chief executive Serge Crasnianski said the group had made “good strategic progress” despite “a challenging end to the period, largely driven by the ongoing Middle East conflict.” Analysts carry an average price target of 210p for the stock, well above Monday’s trading levels.
The board flagged that geopolitical factors “may lead to a softening of trading patterns” in the months ahead, meaning the recovery seen in May and June will need to hold for ME Group to reach its lowered profit range. With laundry installations on track and new partnerships in France and the UK bedding in, the group’s ability to keep growing that side of the business will be key to offsetting any renewed weakness in photo booths.