Equities Update: Deliveroo, Harbour Energy…

First ever profit for Deliveroo

Adam Vettese, Market Analyst at investment platform eToro, says: “Undoubtedly the key take-away from Deliveroo’s results is the huge milestone of making their first profit, which after an £80+million loss a year earlier is no mean feat. After the pandemic home delivery boom, the firm has had to endure the cost of living crisis, where discretionary spending on things like a weekend takeaway won’t have made the cut on consumers’ squeezed budgets.

“The metric the company likes to use is GTV – Gross Transaction Value – and this is showing an upward trend on the basket value customers are spending, whilst demand is normalising  as we see inflationary pressures begin to ease.

“Looking ahead, the guidance is expected to be in the upper half and the company plans to return cash to shareholders via £150m buybacks. Investors will hope this positive print is the start of a road to recovery for the shares after a lacklustre IPO and a catastrophic 75% plunge from its high in 2021.Consumers quite likely have lasting habits that favour home delivery and now with strain on the budget potentially easing, there could be many more profit making updates from Deliveroo to come.”

Harbour Energy edges closer to transformational acquisition

Mark Crouch, Market Analyst at investment platform eToro, says: “Harbour Energy investors are waiting with bated breath as the UKs largest independent oil and gas company is close to pulling off one the most ambitious acquisitions the UK’s industry has seen for some time. The Wintershall DEA acquisition has the potential to establish the company as a significant player on the global stage.

“The significance of the deal cannot be underplayed for Harbour Energy. If the company can get it over the line, the impact on Harbour’s earnings will be substantial. With production levels set to more than double, revenue, profits, and shareholder returns are all set for a major boost.

“With the UK’s windfall tax making The North Sea almost “un-investable”, moving investments away was inevitable for producers operating in the area. What’s more encouraging for shareholders is Harbour says is is still on the lookout for yet more acquisition opportunities, and at the current growth rate, rubbing shoulders with the supermajors in the future could be a realistic possibility.”