Just Eat's profits are up amid merger pressure

Keiligh Baker's picture

Britain's largest food delivery business, Just Eat, has reported a strong rise in revenue - amid pressure from a shareholder to merge with a rival.

Revenue rose 43% to £779.5m, while it reversed a loss in 2017 to report profits of £80m. The company said it expected its full-year revenue in 2019 to be between £1bn to £1.1bn.

The figures were released as the company faces continued pressure from investor Cat Rock Capital to merge with a competitor.

Interim chief executive Peter Duffy said: “We are creating a leading hybrid offering founded on our unrivalled marketplace, combined with the targeted roll-out of delivery. This gives our growing customer base access to the greatest choice of restaurants and drives even more orders to our restaurant partners, ultimately strengthening the network effects of our business.

“We have a clear plan for the year ahead as our highly experienced team works hard to accelerate the execution of our strategy and we remain focused on long-term returns for shareholders.”

Chair Mike Evans added: “The strategy set out last year is working and already delivering strong results. Our experienced management team, led by Peter Duffy, is working to accelerate the implementation of that strategy.

“Our leading hybrid marketplace gives Just Eat a real competitive advantage and we are pleased with the speed at which this is now being rolled out.

"The board's search to identify Just Eat's next permanent chief executive is underway and we will provide a further update when a decision has been taken.”