eliveroo could be about to declare its first ever dividend after the meal delivery app cheered resilient customer demand.
The firm is preparing to issue a £250 million capital return to shareholders, with either a special dividend, a tender offer or a share buyback on the table as potential mechanisms.
CEO Will Shu told 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 company said it will decide on a method for the capital return by September.
Deliveroo shares rose 3.3% to 128p.
The London-based firm today upgraded its guidance after a robust first-half performance saw its losses narrow.
Deliveroo said it would make pre-tax earnings of between £60-80 million, ahead of the £20-50 million it previously guided, after losses fell to £82.9 million from £153.8 million the previous year.
Shu said: “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.”
This story is being updated