ne of London’s best-known tech unicorns could be about to declare its first ever dividend after it cheered resilient customer demand.
Meal delivery app Deliveroo 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.
Neil Shah, Director of Research at Edison Group comments: “With ‘cutting back’ on the minds of many consumers, Deliveroo’s interim results display its commitment to its delivery of resilient and adaptable business.
“The decision to return £250 million of structural surplus capital to shareholders, along with a total capital return of £300 million announced for 2023, reflects Deliveroo’s commitment to rewarding its investors.”
Revenue climbed 5% to just over £1 billion for the first six months of the year, as average order sizes grew 10% to £24.20. Order numbers slipped back 6% to 145 million.
Shu told the Standard Hawaiian food had become the most popular in London, after a surge in demand for Poké bowls. Semi-skimmed milk, bananas and white wine were the most popular grocery orders in the capital.
This story is being updated