ME Group Reaffirms 2026 Profit Guidance as Trading Rebounds From April Dip

ME Group International Plc (LSE: MEGP) reaffirmed its full-year profit guidance on Monday, signaling that business has recovered from a temporary slowdown in April caused by weaker consumer spending. The instant-service equipment operator reported a slight decline in first-half pre-tax profit, though its expanding laundry division continued to show robust growth.

First-Half Financials

For the six months ending April 30, 2026, ME Group reported mixed financial results, with underlying earnings growth offset by a dip in net profit. The board declared an interim dividend of 3.60 pence per ordinary share, a 6.5% decrease from the prior year.

Key figures from the period include:

• Group revenue: £154.3 million, a slight increase of 0.3% year-over-year.
• EBITDA: £57 million, up from £53.2 million in the year-earlier period.
• Profit before tax: £32.7 million, a decrease of 3.8%.
• Diluted earnings per share: 6.48 pence, down 3.9%.

Trading Recovers After Temporary Slowdown

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The company stated that while trading was in line with expectations for the first five months of its financial year, April saw "a significant reduction in photobooth activity." Chairman Sir John Lewis attributed the slowdown to a more cautious consumer environment that was "particularly" pronounced in France, linking it to weaker demand amid "ongoing geopolitical uncertainty."

The board described the situation as "an extraordinary and temporary situation," noting that trading patterns have been returning to normal levels since May. The company reported that in May, photobooth revenues rebounded with 25.9% year-over-year growth, while its Wash.ME vending revenue grew 11.1%.

Laundry Division Drives Strategic Growth

A key driver of the company's strategy is the expansion of its laundry operations. The Wash.ME laundry business saw its revenue grow 16.3% to £54.8 million in the first half. According to CEO Serge Crasnianski, laundry operations now account for over 38% of group revenue and 54% of group EBITDA.

ME Group installed a net 499 new laundry machines in the period and signed what it called its largest-ever laundry agreement through a new partnership with UK supermarket chain ASDA. The company also renewed multi-year contracts in France with rail operator SNCF and Paris transport operator RATP. Reflecting this business momentum, the company reaffirmed its full-year guidance for profit before tax in the range of £69 million to £74 million.