Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Just Eat Takeaway.com
Just Eat Takeaway.com [LON:JET] has published full year numbers this morning with the company delivering a bumper set of results. Combined revenues grew by 54%, although the company continues to find itself in the red with pre-tax losses jumping by 67%. The company notes that in 2021 it is prioritising further growth in market share but this will be an interesting tactic to watch play out. As restaurants (hopefully) reopen, it’s not only a question of whether consumer behaviour will switch back to dining out, but also if the hospitality industry will be looking to extend its reliance on third party operators like this.
Legal and General Group
Full year results from Legal and General Group [LON:LGEN] appear to offer investors little cause for concern, with COVID-19 failing to dent the key financial metrics. Operating profits are relatively flat, although the lower interest rate environment is pressuring the post-tax figure. As with any financial company of this size, the results form a weighty tome, but a quick scan highlights that ambitions such as investing in what the company terms the real economy – housing shortages, SME investment and so on – remain a core focus and the growth outlook remains unchanged.
Contrasting with the Just Eat numbers, full year figures are out from The Restaurant Group [LON:RTN] this morning, too. Unsurprisingly it has been a shocking year for the company, with its estate having shrunk by over one third, whilst revenues have fallen by almost 60%. There remains uncertainty over how quickly the sector can reopen and whether further restrictions will come into place later in the year, but the company is poised for a rebound. Liabilities have however marched higher, up from £660m a year ago to over £1 billion and a further cap raise round has been confirmed today, too. If businesses like this emerge in tact, it will be this cohort that may quite literally end up eating the lunch of the delivery based operators.
Sign up for three quick facts and more with our Free Daily Digest newsletter, every weekday morning.