Even without its raft of acquisitions, the number of takeaway orders via Just Eat (JE) rose 47 per cent to 41.9m, suggesting diners' appetite for a hassle-free meal is not abating. The surge is also being translated into profitability - average revenues per order were up 4 per cent, pushing up the group's underlying cash profits 62 per cent to nearly £26m. This is being achieved, management say, "in spite of our investment in the business" in areas such as marketing and technology.
The move to buy up major overseas players is also working for the group, especially in countries such as Australia and New Zealand. Its purchase of Menulog, a business which has been running for about nine years, should boost the bottom line given it is already a profitable business, according to management. There are also plans to increase investment in Mexico and Brazil. Subsequent to the results, it bought Nifty Nosh, Ireland's number two online takeaway business and Orderit.ca in Canada for a combined cost of £7m.
Management upgraded turnover guidance to £230m for the year and expect this revenue outperformance to continue into 2016.
Analysts at JPMorgan Cazenove expect adjusted pre-tax profits of £45m in this financial year leading to adjusted EPS of 5.5p up from £29m and 4.2p in the 2014 full-year.
| JUST EAT (JE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 449p | MARKET VALUE: | £3bn | |
| TOUCH: | 448.8-449.4p | 12-MONTH HIGH: | 523p | LOW: 202p |
| DIVIDEND YIELD: | nil | PE RATIO: | 44 | |
| NET ASSET VALUE: | 90p* | NET CASH: | £158m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 69.8 | 8.6 | 1.2 | nil |
| 2015 | 108 | 14.0 | 1.7 | nil |
| % change | +54 | +63 | +42 | - |
Ex-div:n/a Payment: na *Includes intangible assets of £519m, or 77p a share | ||||
