Just Eat Shares Fall Most in 20-Months Over Delivery Investment

Marco Green
March 6, 2018

The group, which has grown rapidly in recent years to enter the FTSE 100, was setting out its plans under new chief executive Peter Plumb.

Just Eat said it expects underlying earnings before interest, tax, deprecation and amortisation in the range of GBP165.0 million to GBP185.0 million, on revenue in the range of GBP660.0 million to GBP700.0 million in 2018.

In the United Kingdom, it saw its highest single day of orders in December on the night of the X Factor final, when more than 500,000 were processed.

It now expects underlying earnings of £165m-£185m for 2018, below market expectations of £226m.

Just Eat also reported 2017 revenue and core earnings above its guidance but took a non-cash impairment charge of 180 million pounds against its Australian and New Zealand operations.

Just Eat said with the hit stripped out, it would have made a profit of £104.4 million.

Recently appointed chief executive Peter Plumb - the former Moneysupermarket.com boss who took the helm last September - said he planned to step up investment across the United Kingdom and its overseas markets.

He added: "As the new CEO, I will be increasing our investment in brand, developing markets and delivery services that will be engineered to complement our thriving marketplace business by bringing more choice to our takeaway-loving customers".

"2017 was a record year for Just Eat".

The company, which was promoted to the FTSE 100 previous year, served up a 45pc surge in revenues to £546m in 2017 as it continued its rapid global expansion, including the acquisition of Canadian rival SkipTheDishes.

In the UK, Just Eat's biggest market, 2017 revenues rose 28% to £304m while orders rose 195 to 105 million, helped by new tie-ups with Burger King and KFC.

"But the market's initial reaction... is one of shock and concern that the move may in fact represent an admission that competition is intensifying for Just Eat".

Other reports by Click Lancashire

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