ME Group Shares Surge After Reaffirming Full-Year Profit Guidance

Shares of ME Group International PLC (LSE:MEGP) surged as much as 11.9% on Tuesday after the company reaffirmed its full-year profit guidance, providing a key anchor of confidence for investors following a period of share price weakness.

The stock rose to 115.71 pence, recovering sharply from near its 52-week low of 98.5p, according to Investing.com data. The rally was triggered by the release of the company's interim results for the six months ended April 30, 2026.

Mixed Results, Steady Outlook

ME Group reported a mixed financial performance for the first half of its fiscal year. While the company's full-year profit before tax guidance remained unchanged at £69 million to £74 million, some key metrics showed divergent trends.

Key figures from the interim report include:

• Group Revenue: Edged up 0.3% to £154.3 million.
• EBITDA: Increased to £57 million, up from £53.2 million in the prior-year period.
• Profit Before Tax: Dipped 3.8% to £32.7 million.

The improved EBITDA alongside the steady full-year forecast was sufficient to outweigh the slight dip in pre-tax profit, signaling to the market that underlying profitability remains robust.

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Laundry Division Outperforms

A breakdown of the results revealed a strategic shift in the company's growth drivers. The Wash.ME laundry division was the standout performer, underscoring its increasing importance to the group's strategy.

Revenue in the laundry segment grew by 16.3%, supported by the net addition of 499 new machines. This strong performance helped offset a 6.2% decline in revenue from the company's traditional photobooth business, which was impacted by regulatory changes in Germany and softer demand in some markets during April.

Investor Confidence Boost

The positive market reaction was amplified by a live online investor presentation held by the company's management on the day of the release. This direct engagement likely helped improve sentiment and reassure existing and prospective shareholders.

For investors, the decision to maintain full-year guidance despite the challenges in the photobooth division was the crucial takeaway. It suggests management is confident in the growth trajectory of its laundry services and its ability to manage headwinds, prompting a significant re-rating of the stock from its recent lows.