Just Eat sees more profit, raises guidance
Fast food takeaway ordering website Just Eat has had a rough run over the last year. It has been plagued by leadership challenges, and worries over UK immigration laws that are damaging supply in its domestic market. According to Just Eat, which is currently led by interim chairman Andrew Griffiths, there is a dearth of quality curry chefs in Britain, and Brexit is likely to make it even harder to find them. However, these long running concerns were pushed to the back burner last week, as the company reported positive earnings for its first half of the year.
Just Eat said that revenues for the six months ending June 30 were up by an impressive 44% to £246.6 million (a 38% rise at constant currencies). Pre-tax profits also rose by a favourable 46% against the first half of 2016, demonstrating that Just Eat may have its problems but, at least for now, the company has kept them well away from the day-to-day operations of its business.
Griffith praised the results, saying that the company had enjoyed “another excellent period of progress.” He added that the credit belonged – at least in part – to the interim chief executive (Paul Harrison) and his colleagues. He said that the company’s success was a direct result of “their hard work and focus at a time of significant change in senior leadership.”
Just Eat said that is would reinvest its revenue “outperformance” on measures such as “increased collaboration with branded UK restaurants.” The group also raised its full year guidance on revenue from a range of £480 million - £495 million to £500 million - £515 million.
Dominion holds Just Eat in its Global Trends Managed Fund.
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