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Deliveroo announced on Thursday its proposal for a £250 million additional return of structural surplus capital.
London-based delivery services firm said this would bring total capital return to shareholders announced in 2023 to £300 million, which is the equivalent to 30% of net cash at the beginning of the year.
Meanwhile, Deliveroo PLC reported a rise in revenue and its loss narrowed ‘despite challenging macroeconomic conditions’ in its half year.
Revenue in the six months ended June 30 was £1.02 billion, up 4.9% from £972.9 million from the year prior.
Pretax loss in the half year narrowed to £57.6 million, from £127.1 million, the year prior.
Founder and Chief Executive Officer Will Shu said: ‘We have delivered a strong financial performance despite challenging macroeconomic conditions. This has been achieved alongside continued improvements to our proposition for consumers, riders and merchants.’
Deliveroo swung to adjusted earnings before interest, tax, depreciation, and amortisation was 39.4 million, from a loss of £51.6 million the year prior.
Net assets fell 26% to £716.9 million, from £965.5 million the year before, whilst net cash was £947.8 million, down 16% to £1.13 billion the year before.
Deliveroo declared no interim dividend, unchanged from the year prior.
The company said it narrowed its gross transaction value for the rest of the year to lower single digits percentage growth, down from low-to-mid single digits percentage growth.
The adjusted Ebitda guidance was updated to a range between £60 and £80 million year-on-year, up from the previous guidance of £20 to £50 million, which it said reflected a ‘strong first half performance’.
Shu added: ‘Looking ahead, we will continue to adapt to the evolving market conditions and execute against our strategy. We remain excited about the number of opportunities we have to drive further growth in the medium and longer-term, and we have the team and resources to capture these opportunities.’
Shares in Deliveroo were up 2.4% to 126.50 pence in London on Thursday morning.
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