Me Group International PLC (LSE:MEGP), the instant-service equipment company, fell 22% to 115p on Monday after warning that a slowdown in French consumer spending had dented its photobooth and laundry businesses, forcing it to cut its full-year profit forecast.
The company now expects profit before tax for the financial year ending October 2026 to come in between £69m and £74m, down from earlier expectations, after revenue softened sharply in April across its core French operations.
Group revenue grew 2% in the six months ended 30 April 2026, but the photobooth division was hit by reduced demand for official photo ID amid travel uncertainty, with Photo.ME revenue down 17% in April alone against a 6% decline for the half-year as a whole.
The higher-margin laundry division, Wash.ME, was also affected, with April revenue up just 3% compared with growth of 17% across the first half overall.
The board attributed the deterioration to weaker consumer confidence linked to ongoing conflict in the Middle East, which it said had driven a shift in spending patterns.
Equipment sales fell 14% in the half-year, though the company said this reflected a deliberate strategic focus on operating rather than on selling instant-service equipment.
ME Group said trading had improved through May but cautioned it did not expect conditions to normalise while geopolitical uncertainty persisted.
The group's laundry expansion programme, targeting the installation of more than 1,300 new Wash.ME machines in the current financial year, remains on track.
Interim results for the six months ended 30 April are scheduled for publication in the latter half of July.