Me Group International PLC (LSE:MEGP) shares fell 7% to a six-month low 176p after the Photo.ME booths and Wash.ME laundry operator posted a year-end update that flagged rule changes over passport photos in Germany.
It said it expected a record set of results, with full-year revenue of between £311 million and £318 million and pre-tax profit of up to £79 million.
Total revenue growth of around 10% is slower than the 13-14% achieved the previous year, as Photo.ME revenues fell around 4%, reflecting the end of a UK contract and new rules in Germany that require passport photos to be taken in government offices or by certified photographers.
The company said its laundry division remained the main growth driver, with revenue up about 10% year-on-year and 27% increase in net new machines installed.
The company said its balance sheet and cash generation remained strong.
ME Group also confirmed that it remains in an offer period following its June statement that it was exploring “strategic options to enhance shareholder value,” including potential takeover approaches.