Just Eat shares soar on Takeaway.com merger details
Rivals Just Eat and Takeaway.com agreed in principle on Monday on the key terms of an £8.2 billion all-share deal.
The possible merger would create one of the largest online food delivery platforms with 360 million orders worth €7.3 billion in 2018.
Shares in Just Eat soared following the announcement, up 23% on Monday morning.
The online food order and delivery service, Just Eat, is headquartered in London, England.
Takeaway.com is a Dutch company also specialised in online food ordering and delivery.
“The Board of Just Eat and the Management Board of Takeaway.com are pleased to confirm that they have reached an agreement in principle on the key terms of a possible all-share combination of Just Eat and Takeaway.com to create Just Eat Takeaway.com N.V.,” Just Eat said in a company statement.
“The Possible Combination has compelling strategic logic and represents an attractive opportunity for both companies to build on the strong individual platforms of Just Eat and Takeaway.com with the potential to deliver substantial benefits to respective shareholders, customers, employees and other stakeholders,” the company continued.
If the merger goes ahead, then the current Chairman of Just Eat, Mike Evans, will assume the role of Chairman of the Supervisory Board of the combined business.
Additionally, Jitse Groen, currently CEO of Takeaway.com, will assume the role of CEO of the combined business.
The food delivery market has seen players such as Deliveroo and Uber Eats increase competition.
Indeed, news emerged earlier in May that Amazon (NASDAQ:AMZN) was set to invest in the food delivery app Deliveroo, just days after rival Uber’s listing on the New York Stock Exchange (NYSE:UBER).
At the start of the year, Time Out sold its stake in Flyt Limited to Just Eat.
Shares in Just Eat plc (LON:JE) were trading at +22.75% as of 08:11 BST Monday.
Shares in Takeaway.com NV (AMS:TKWY) were up 2.51% as of 09:11 CEST Monday.
AFC Energy develops premier hydro electric vehicle charger
Hydrogen energy production company AFC Energy plc (LON: AFC) posted its half year results today, and announced its entrance into the Electric Vehicle charging market.
The Group said it had entered the market with a successful demonstration of its CH2ARGE prototype, which enters operation as the first hydrogen fuel cell based electric vehicle charger.
Today’s announcement disclosed details of a collaboration agreement with Rolec Services Limited – Europe’s largest charge point manufacturer – which enclosed information on the integration of CH2ARGE technology into Rolec’s charge points.
AFC Energy also boasted what it described as a ‘strong’ balance sheet to fund product development and the launch of its Go-to-Market strategy.
The Group also announced; the finalisation of engineering and design for modular electric vehicle charger units, appointment of a dedicated sales team, development of industrial scale projects, expansion of its product range through ongoing development of auxiliary products with reduced footprint and operating costs, and the longest continued operation of electrode pairing delivered under the De Nora / AFC Energy Joint Development Agreement.AFC Energy comments
Adam Bond, Company Chief Executive Officer, said,
“The productisation of AFC Energy’s fuel cell system is now well underway. Delivery of the first hydrogen fueled EV charger for deployment across the UK later this year, to be followed by modular stationary off grid power systems, highlights the corner AFC Energy has now turned in taking its hydrogen power units to market. This in no small way has been driven by the acceleration of Government policy towards decarbonization of the transportation sector in parallel with the push for reduced air pollution from the off-grid power market.”
“The last six months has seen several important landmarks in our history, including the achievement of record electrode lives in collaboration with De Nora, further progression on the cost reduction of electrode manufacture, the bringing together of the supply chain for our systems’ mass production and the introduction of AFC Energy’s new high power density alkaline fuel cell system. I am particularly excited about the growing success in system integration we are seeing, including the potential for the steps forward in the use of ammonia as a lower cost fuel for point of use hydrogen generation, which will allow us to target new growth markets for the fuel cell, seeing AFC Energy as a leading exponent of the rapidly emerging hydrogen economy, both in the UK and internationally.”
Investor notes
The Company’s shares dipped 1.81% or 0.085p to 4.62p a share 26/07/19 16:30 BST. Both its dividend yield and p/e ratio are marked as N/A by Hargreaves Lansdown. There have been recent renewable energy updates from; John Laing Environmental Assets Group Ltd PLC (LON: JLEN), SIMEC Atlantis Energy (LON: SAE), Aquila European Renewables Income Fund (LON: AERI) and PowerHouse Energy Group (LON: PHE).Nestle sees boosts in growth, profits and sales
Swiss-based food and drink company Nestle SA (SWX: NESN) saw bumper performance over the first half of 2019; with increases in organic growth, sales and profit.
The Company booked organic profit growth of 3.6% on-year, led by its US and Brazil operations. Total sales were also up by 3.5% to CHF 45.5 billion, with net acquisitions having a positive impact of 1.1% and foreign exchange having a detracting effect of 1.2%.
Underlying Trading Operating Profit reached 17.1% and Trading Operating Profit increased to 15.5%, up 100 and 90 basis points respectively. Underlying EPS also rose 15.7% on constant currency and 14.6% on a reported basis to CHF 2.13. Following last year’s hike led by the disposal of the Group’s confectionery business, this year’s EPS was down 12.3%.
Nestle noted that its free cash flow increased by 40.4% to CHF 4.1 billion. The Group said its portfolio management was on track and its full year guidance projected sales growth of 3.5%, alongside increases in profit margin and EPS.
Nestle comments
Company CEO, Mark Schneider, stated,
“We are encouraged by our first half results and have made further progress toward our 2020 financial goals. Disciplined execution and fast innovation contributed to improved organic growth and profitability. Our growth was broad-based with our largest market, the United States, performing particularly well. Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee. Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity. Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth.”
Investor notes
The Company’s shares rallied 1.76% or CHF 1.80 to CHF 104.04 a share 26/07/19 17:30 CEST. The Group’s dividend yield currently stands at 2.40%. Elsewhere, there have been updates from other food and drink retailers; Fuller, Smith and Turner plc (LON: FSTA), Compass Group plc(LON: CPG), SSP Group PLG (LON: SSPG) and Dominos Pizza Poland (LON: DPP).Coro Energy presentation at the UK Investor Magazine Summer Investor Evening 18th July 2019
Coro Energy CFO Andrew Dennan presents at the UK Investor Magazine Summer Investor Evening and discusses the opportunity for their South-East Asian projects.
The presentation can be downloaded here.
BlueRock Diamonds presentation at the UK Investor Magazine Summer Investor Evening 18th July 2019
BlueRock Diamond present at the UK Investor Magazine Summer Investor Evening 18th July 2019.
The BlueRock Diamond board outlines the companies resources and opportunity for increasing production and improving the grade of their gems.
The presentation can be downloaded here.
The Vin De France Wine Worth £26,000 A Bottle
Investment grade wines typically come with hefty price tags, but the current world record holder is about to be eclipsed by maverick winemaker Loic Pasquet from the Liber Pater estate which only began producing wine in 2006.
Currently the world’s most expensive wine is the Romanée-Conti Grand Cru from the legendary Burgundy domaine which typically sells for around £20,000 to £22,000 per bottle. Loic plans to challenge this with the release of his 2015 vintage in September at a starting price of €30,000 or £26,600, which represents an eightfold increase on the price of his 2011 vintage which has a €3,000 price tag per bottle.
Since founding Liber Pater, Loic Pasquet has focused on reviving forgotten Bordeaux varietals and producing the finest wines possible from his well-sited vineyards which frequently receive ratings over 90 points by top wine critics. He insists on farming organically and only uses a 150 year old plough and horse in the vineyards to avoid disturbing the ecosystem any more than is necessary. His is a true success story against a wider trend turbulence on the Bordeaux fine wine market as collectors and investors have increasingly sought out top Burgundy producers over their Bordelais cousins.
Loic’s pricing strategy is based on the incredible global demand for his wines from collectors and investors and the extremely limited quantities he is able to produce each year. For the 2015 release Loic made just 550 bottles of which only 240 will be released for sale on a strict allocation basis to those already on the estate’s exclusive list.
Loic plans to keep the remaining bottles and will put aside a small amount for his daughter in his personal cellar, meaning that additional bottles may become available in the future. He explained that, “normally I would enjoy wine with friends and family—but this is just for me. It’s a great wine that can be drunk young or old, today or in the next 150 years. It’s the real and true taste of Bordeaux.”
The scarcity factor is also being exacerbated by the fact that no wine was produced in 2008, 2012 or 2013. In 2016 the estate was targeted by vandals who prevented the winery from processing that year’s grapes and in 2017 frost damage prevented Loic from making any wine.
The limited availability of the latest vintage release is sure to prove very attractive to Liber Pater’s cult following and savvy investors with an eye for a hot ticket. These are wines whose rarity and brilliance will transform them into true classics with wide appeal for the world’s most discerning appreciators of the finer things in life.
Loic’s success is also good news for the Bordeaux region in general, proving that the city’s top producers can hold their own against their Burgundian rivals in the fine wine arena. With a strong dose of passion, a relentless dedication to quality, and a touch of eccentricity, Liber Pater is proof that Bordeaux is fighting back, one vintage at a time.
Download a comprehensive guide to wine investing here.
Nestle reports 3.6% first-half organic growth
Nestle reported an organic growth of 3.6% on Friday in its half-year results for 2019.
The Swiss multinational food and drink company added that it saw a continued strong real internal growth of 2.6%.
Nestle said that increased growth was driven by the United States and Brazil.
Moreover, free cash flow was up by 40.4% to CHF 4.1 billion.
Earlier in May, Nestle announced that it had entered negotiations to sell Nestle Skin Health.
The owner of the KitKat brand also acknowledged the success of the chocolate bar earlier this year, meaning it would not need to add any new businesses to its portfolio.
“We are encouraged by our first half results and have made further progress toward our 2020 financial goals,” Mark Schneider, Nestle CEO, said in a company statement.
“Disciplined execution and fast innovation contributed to improved organic growth and profitability. Our growth was broad-based with our largest market, the United States, performing particularly well,” the CEO continued.
“Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee.”
“Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity. Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth.”
Nestle also confirmed its full-year guidance for 2019, expecting organic sales growth around 3.5% and the full-year underlying trading operating profit margin at or above 17.5%.
Shares in Nestle SA (SWX:NESN) were up 1.98% as of 11:14 CEST Friday.
