Deliveroo has proposed a £250m tender offer to shareholders as its prospects look to be steadily improving, despite ongoing concerns over the treatment of workers from the firm, according to experts.
The move would see the firm buy back its shares at a premium, bringing the total the company has paid out this year to around £300m. Garry White, chief investment commentator at Charles Stanley, said the firm's interim results in August had shown a "narrowing of losses", leading to plans to return more than 10% of share capital. Mamta Valechha, equity research analyst at Quilter Cheviot, added that Deliveroo had beat its earnings estimates "quite significantly", with an H1 adjusted EBITDA of £39m, compared to a consensus estimate of £16m, which had enabled the firm to meet its full-ye...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
