ME Group International (LSE:MEGP) shares plunged 23.4% to 112.6p after the instant-service equipment group issued a profit warning, blaming softer April revenues on deteriorating consumer confidence.
The stock traded on volume of 2.31m shares within an intraday range of 106.0p to 123.4p.
Profit-before-tax guidance was cut to between £69m and £74m.
April hit hard across the board
Group revenue for the six months to 30 April rose 2%, but the headline number masked sharp deterioration in the final month.
Photo.ME revenue fell 6% across the first half and was down 17% in April alone. Wash.ME grew 17% over the half but slowed to just 3% growth in April. Equipment sales dropped 14% as the company shifts its model towards operating machines rather than selling them.
The group attributed the April weakness to falling consumer confidence linked to the ongoing conflict in the Middle East, saying trading improved through May but is not expected to normalise while uncertainty persists.
Laundry expansion continues
The board said the balance sheet remains strong and that the higher-margin laundry rollout is on track, with more than 1,300 Wash.ME machines set to be installed in the current financial year.
Interim results for the six months to 30 April are expected in the second half of July.
