Just Eat looks to strike up delivery deals with chains such as Burger King and KFC as it celebrates appetising 46% profit rise

  • Pre-tax profits rose to £49.5million in the six months to June 30
  • Order numbers increased 24 per cent to 80.4million in the period 
  • The firm now plans to add more mainstream eateries to foster further growth

Online food delivery firm Just Eat says it plans to work with more chain restaurants such as Burger King and KFC as it looks to springboard off a 46 per cent profit rise

Online food delivery firm Just Eat says it plans to work with more chain restaurants such as Burger King and KFC as it looks to springboard off a 46 per cent profit rise

Online food delivery firm Just Eat says it plans to work with more chain restaurants such as Burger King and KFC as it looks to springboard off a 46 per cent profit rise.

Pre-tax profits rose to £49.5million in the six months to June 30, while revenues shot up 44 per cent to £247million.

Order numbers increased 24 per cent to 80.4 million in the period, with solid improvement in the UK as well as its international business, which accounts for over 40 per cent of total revenue.

In a statement, Just Eat said its first half sales were ahead of management expectations, leading it to raise its revenue guidance for 2017 to between £500million to £515million, up from £480million to £495million.

Interim chairman Andrew Griffiths said it had been 'another excellent period of progress' and praised the team for 'their hard work and focus at a time of significant change in senior leadership'. 

It comes as Just Eat is experiencing management upheaval with its new chief executive Peter Plumb due to join in September, after David Buttress was forced to step down in February due to 'urgent family matters'. 

Chairman John Hughes died in June, leaving Mr Griffiths to step in as interim chairman.

The firm, which was founded in 2001 and floated on the stock market in 2014, is also facing a full-blown investigation into its takeover of rival Hungryhouse amid concerns the deal could curb competition.

Nevertheless, Mr Griffiths sounded a positive note on the outlook, saying: 'Today's results, recent appointment of Peter Plumb as chief executive officer and the very substantial headroom for further growth in all of our territories mean that we are exceptionally well-placed as we enter the second half of the year.'

The group said it was investing the extra revenue into 'profitable growth opportunities', including 'increased collaboration with branded UK restaurants'.

Its focus so far has been on serving independent restaurants but it is now branching out with the addition of more mainstream eateries. 

The company's interim chief executive and chief financial officer Paul Harrison says investment in partnerships was one of the reasons it had raised its revenue outlook, alongside better-than-expected growth in particular from its international business, which now contributes 43 percent of group revenue.

For the six months to June 30 Just Eat continued to win share from its largest competitor - the telephone. Orders increased 24 per cent to 80.4million.

For the six months to June 30 Just Eat continued to win share from its largest competitor - the telephone. Orders increased 24 per cent to 80.4 million

For the six months to June 30 Just Eat continued to win share from its largest competitor - the telephone. Orders increased 24 per cent to 80.4 million

'We... are pleased that 75 per cent of total orders are now placed on mobile devices,' said Harrison, who will revert to his finance role when Plumb, the former boss of Moneysupermarket.com, takes over as CEO in September.

Core earnings - underlying earnings before interest, tax, depreciation and amortisation - rose 38 per cent to £73.6million.

Britons have been hurt by a rise in inflation, caused in large part by the fall in the value of the pound since last year's vote to leave the European Union, and by a slowdown in wages growth. Harrison, however, remains upbeat on prospects.

'That weakness that we read about, that we observe in the consumer market, is not apparent in our results, in our business and experience,' he told reporters. 

Guidance for full year underlying earnings is unchanged at between £157million and £163 million. Shares in Just Eat fell as much as 5.7 percent on Thursday. 

They were down 2.9 percent at 690 pence in morning trading, valuing the business at £4.7billion.