Deliveroo eyes first ever dividend amid resilient demand
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ne of London’s best-known tech unicorns may very well be about to declare its first ever dividend after it cheered resilient buyer demand.
Meal supply app Deliveroo is getting ready to challenge a £250 million capital return to shareholders, with both a particular dividend, a young supply or a share buyback on the desk as potential mechanisms.
CEO Will Shu advised the Standard: “Given we’re well ahead we’re confidently saying we’re going to propose a return to shareholders.
“We’ve got our investment pot, we’ve got our rainy day fund and now we’ve got surplus money to give back.
“We’re going to be consulting with shareholders to figure out what works…typically the three options are a share buyback, a tender offer or a special dividend.”
The firm mentioned it is going to resolve on a technique for the capital return by September.
Deliveroo shares rose 3.3% to 128p.
The London-based agency right this moment upgraded its steering after a sturdy first-half efficiency noticed its losses slender.
Deliveroo mentioned it might make pre-tax earnings of between £60-80 million, forward of the £20-50 million it beforehand guided, after losses fell to £82.9 million from £153.8 million the earlier yr.
Shu mentioned: “Over the last 18 months, Deliveroo has reached adjusted EBITDA profitability ahead of plan, and we are progressing towards our goal of generating consistent positive free cash flow. The industry is large and still early in its maturity, and we are excited by the growth opportunities ahead of us.”
Revenue climbed 5% to simply over £1 billion for the primary six months of the yr, as common order sizes grew 10% to £24.20. Order numbers slipped again 6% to 145 million.
Shu advised the Standard Hawaiian meals had develop into the preferred in London, after a surge in demand for Poké bowls. Semi-skimmed milk, bananas and white wine have been the preferred grocery orders within the capital.
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