Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Market Report: Just Eat announces plans to buy local peer Menulog for £445m

'Given the hefty price tag, though, it might take some time for Just Eat to digest and have the appetite for further acquisitions'

Joanna Bourke
Friday 08 May 2015 16:26 EDT
Comments
The takeaway firm Just Eat has announced plans to enter the Australian and New Zealand markets
The takeaway firm Just Eat has announced plans to enter the Australian and New Zealand markets (Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Most attention was on the election result, but shareholders on the FTSE 250 mid-cap index were still watching the usual updates.

The online takeaway firm Just Eat announced plans to enter the Australian and New Zealand markets by buying local peer Menulog for £445m, to be financed by an equity issue.

Jonathan Buxton, the head of consumer and retail at Cavendish Corporate Finance, said: “Given the hefty price tag, though, it might take some time for Just Eat to digest and have the appetite for further acquisitions.” The company was at the bottom of the index, dropping 59.40p to 436.7p.

The Hedge fund Man Group fell 1.3p to 177.7p. The group said it retained “a degree of caution on the outlook for first-half flows” and the City failed to get too excited, despite funds under management climbing 7 per cent to $78.1bn as at 31 March.

The market was kinder on the FTSE 250 payment services company PayPoint, which rose 6.5p to 864.5p. The gains came after the business appointed board member Nick Wiles as its new chairman. He replaces Warren Tucker.

Technology company Laird increased 32.7p to 389.9p on the back of a 25 per cent hike in first quarter revenue to £149m. A note from JP Morgan analyst Alexander Mees said: “Laird is well placed to deliver steady earnings growth driven by the proliferation of high-capability wireless-enabled mobile devices.”

On the FTSE 100 the leader board was dominated by politically sensitive stocks where confidence had returned after the threat of a Labour government had been lifted. These included housebuilders Persimmon, Barratt Developments and Taylor Wimpey.

Randgold Resources fell, a day after it said its first quarter profits had been affected by higher exploration costs. It was 11p lower at 4,764p. The FTSE 100 index was up 2.32 per cent to 7,046.82

Jasper Lawler, analyst at CMC Markets UK, said: “The reason stocks jumped so much is that a majority government is perceived to reduce uncertainty and because a majority simply wasn’t expected.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in