Shares in ME Group International, the specialist in automated vending and laundry services, jumped sharply on Friday after the company published half-year results that beat market expectations. By mid-morning, the stock was trading at around 245p, up 8.3% on the day, making it one of the top performers on the FTSE 250 index.
The company reported a rise in both revenue and pre-tax profit for the six months to 30 April 2026, driven by continued expansion of its Photobox photobooth network and its Washroom laundry division. Management highlighted that the group's recurring revenue model and low operational costs had helped maintain margins despite inflationary pressures in the wider economy.
Analysts at Peel Hunt noted that ME Group's cash conversion remains strong, and the company's decision to maintain its interim dividend at 1.3p per share was a positive signal for income-focused investors. The stock has now risen nearly 30% over the past 12 months, outperforming the FTSE 250's modest gain of around 4% in the same period.
The FTSE 250 index itself was broadly flat on Friday, edging up 0.1% to 20,450 points, as investors weighed mixed economic data from the UK. ME Group's rally stood out in a subdued session for mid-cap stocks, which have been under pressure from rising interest rates and uncertainty over consumer spending.
For UK pension holders and retail investors with exposure to mid-cap funds, ME Group's performance underscores the appeal of companies with predictable, cash-generative business lines. The company's focus on low-cost, high-frequency services—such as photo booths and self-service laundry—has provided a buffer against the broader slowdown in discretionary consumer spending.