Shares in market newcomer Just Eat (JE.) surged 10 per cent as the world's largest online marketplace for takeaway restaurants reported a near seven-fold year-on-year increase in underlying cash profit to £15.9m at the half-year stage.
A 50 per cent rise in food orders to 27.5m came as a further 4,400 restaurants signed up to the Just Eat website, bringing the total to 40,800 across 13 countries. That, in turn, led to a 35 per cent jump in active users to 6.9m. Chief executive David Buttress said signing up new restaurants was key in an industry where scale was vital: the more restaurants that take part, the more consumers use the website, which in turn leads to more restaurant signings.
The UK was the star performer. Sales here rose 69 per cent to £51.9m, as 2,500 new restaurants signed up, boosting order numbers by 58 per cent to 20.6m. The business also increased its commission from each order and benefited from higher prices. Danish sales grew 12 per cent to £6.5m, while the 'other' segment, comprising nine countries, saw sales soar by 51 per cent to £11.3m. However, that division made a £4.9m loss as it pumped money into advertising.
| JUST EAT (JE.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 241p | MARKET VALUE: | £1.4bn | |
| TOUCH: | 240-242p | 12-MONTH HIGH: | 298p | LOW: 195p |
| DIVIDEND YIELD: | nil | PE RATIO: | 105 | |
| NET ASSET VALUE: | 26p | NET CASH: | £154m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 44.1 | 3.1 | 0.4 | nil |
| 2014 | 69.8 | 8.6 | 1.2 | nil |
| % change | +58 | +177 | +200 | - |
Ex-div: na Payment: na | ||||
