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(Sharecast News) - Shares in ME Group International tanked by 25% on Monday after the self-service equipment company warned annual profits would be lower as the Iran war hit revenues at its photo-booth and laundry businesses in the first half of the fiscal year.
Group revenue in the six months to April 30 grew 2%, but the photobooth business was impacted by reduced demand for official photo ID amid ongoing travel uncertainty.
ME now expects FY 2026 profit before tax to be in the range of 69m to 74m, compared with 78.2m a year earlier.
"During April, the group experienced a softening in revenue, particularly in the French photobooth and laundry businesses. The board believes this is largely attributable to a shift in consumer spending patterns driven by lower consumer confidence due to the ongoing conflict in the Middle East," the company said in a trading update.
Wash.ME, the group's higher-margin business, was also impacted in April by a decline in consumer spending, with revenue in April up only 3% compared with an increase of 17% in H1 2026 overall.
"While there has been an improvement in trading through May, the board does not expect trading patterns to normalise while conflict in the Middle East and the subsequent uncertainty in the macroeconomic landscape continue."
Reporting by Frank Prenesti for Sharecast.com
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