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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Tech

Cash to go when Deliveroo updates, brokers predict

After a brief recovery spurt last year, Deliveroo shares have marked time over the past six months and analysts are not expecting too many fireworks with its fourth-quarter/full-year update next Friday, 19 January.

Consensus forecasts for 2023 are for sales of £2.05 billion, split £1.21 billion UK and £827 million international.

Aside from sales, how much the delivery company intends to give back to shareholders is garnering interest from brokers.

Jefferies thinks the delivery company will have a closing year net cash balance of over £700 million before £170 million for legal provisions and £200 million saved for contingent liabilities.

Another £50 million has been reserved for share buybacks to cover any compensation owed to employees.

But the broker thinks that £250 million of what is left will be earmarked for a return of capital in the coming year (either through share buybacks or dividends).

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