Shares in Just Eat (LON:JE) have posted a hefty fall in London this morning as one of the newest additions to the blue-chip FTSE 100 index revealed that it had made a pre-tax loss last year. The group’s results were hit by a £180-million impairment on its business in Australia and New Zealand.
As of 10:13 GMT, Just Eat’s share price had given up 8.88 percent to 776.20p, underperforming the broader UK market, with the benchmark FTSE 100 index having added 0.94 percent to 7,183.17 points, boosted by a rise in Smurfit Kappa (LON:SKG). Just Eat’s shares have added more than 50 percent to their value over the past year.
Just Eat posts full-year loss
Just Eat announced in a statement this morning that it had made statutory loss before tax of £76 million for the year ended December 31, 2017, as well as basic earnings per share loss of 15.2p. The group meanwhile posted a 45-percent rise in revenue to £546 million, while its underlying earnings before interest, taxes, depreciation and amortisation (EBIDTA) came in 42 percent higher at £164 million.
The group’s financial performance, however, was hit by a non-cash impairment charge of £180 million recognised against Australia & New Zealand goodwill. Just Eat further disclosed that competition in those markets was intensifying.
The company, however, sounded an upbeat note going forward, saying that it was on course to deliver uEBITDA of between £215 million and £235 million in the current year.
Analysts on blue-chip group
Liberum Capital remains bullish on Just Eat, having reiterated its ‘buy’ stance on the shares today, with a price target of 935p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 901.86p.