Just Eat PLC (LON:JE.) was one of the biggest movers as the opening bell rang in London after it posted some sizzling numbers in its full year results.
With the company priced very much on future growth potential investors were looking for assurances that the expansion enjoyed in recent years is set to continue, and they weren't disappointed.
For the year to 31 December 2016, orders grew 42% to 136mln with the online food delivery market place processing more than £2.5bn worth of orders in the period.
As a result, profit before tax more than doubled to £91.3mln (2015: £34.6mln) on increased revenues of £375.7mln (2015: £247.6mln).
“Just Eat posted another strong financial performance in 2016, with revenues up 52% and underlying EBITDA rising by 93%,” said chief executive David Buttress.
“This reflects robust order growth across the business, strong cash generation and further underlying EBITDA margin expansion as we consolidated our market leadership in every geography where we operate.”
The good news kept coming for investors, with the business targeting revenues of more than £480mln and underlying earnings of at least £157mln in the coming 12 months.
Just Eat said that, while the UK remains its largest and core market, it is “excited” by the growth it is experiencing in its international businesses which are “much less penetrated” than at home.
To take advantage of this “significant opportunity”, the company acquired several of its smaller peers in Italy, Spain, Mexico and Canada, while it is also in the process of taking out its main rival, hungryhouse, here in the UK.
Buttress – who is stepping down at the end of this month because of “urgent family matters” – said the spending spree will likely continue in 2017.
Net revenues in Australia and New Zealand tripled to £36.8mln last year, while net revenues in established markets (which include France, Ireland and Canada) jumped to £75.5mln from £55.8mln in 2015.
Similarly, net revenues in developing markets (Italy, Spain and Mexico) shot up by 175% to £26.2mln.
Shares gained more than 5% in early deals to trade at 543p.