Just Eat Lifts Profit Forecast On Charge Rise

Just Eat (Other OTC: JSTLF - news) has raised its sales and profit guidance for the year after reporting a 57% jump in orders in its first quarter.

The takeaway delivery marketplace, which matches home diners with takeaway restaurants, said it was benefiting from a rise in the commission it charged UK outlets, which kicked in during April.

It (Other OTC: ITGL - news) reported 31.5 million orders in the first three months of the year - up 57% on the same period last year.

On a like-for-like basis, which measures sales at outlets within the Just Eat family for a year or more, sales were 41% higher.

It now takes a 13% cut from the value of an order - up from 12%.

Just Eat said: "Given the increase in the UK commission rate going into the second quarter, the board increases its expectations for full year revenues to £358m, at current exchange rates, up from £350m given at the time of the full year 2015 results."

It now expected underlying profits of £102m-£104m, the company added.

Chief executive David Buttress said: "We have had an excellent start to 2016 and I am delighted with the company's performance and the momentum in the business.

"The team has continued to work hard to deliver increased value and ever more orders to our restaurant partners.

"Our focused strategy and improvements to both our consumer offering and restaurant support are working and we are well positioned to continue benefiting from channel shift in the category."

The FTSE 250 firm, which floated in 2014, has enjoyed phenomenal sales growth in the UK and seen its share price grow from 290p to above 410p as a result - up 7% on Tuesday, recovering some of the ground it had lost this year in common with many stocks.

It announced in February it was snapping up four overseas businesses as it looks to grow share in territories outside its core UK market.