Market Report: Just Eat shares fall on fears its backers will sell more

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Investors feared Just Eat’s venture-capital backers would cash in more of their chips today after the online takeaway firm’s full-year update.

The FTSE 250 company’s shares were not far off their all-time highs before falling 24.5p, or 5%, to 451.8p.

The decline came even as Just Eat revealed stronger reported order growth of 57%. 

However, stripping out sales from Menulog in Australia, which it bought in the summer, like-for-like order growth slipped from 47% during the first half and 48% in the third quarter to 46% over the year. 

In November, Just Eat’s shares slid even as it upgraded full-year guidance by £10 million. 

It emerged that venture-capital firms Redpoint Ventures and Index Ventures, which own more than 11% of the company’s shares between them, sold some of their stock after the update. 

The pair did the same thing following last year’s annual results, so they might be inclined to repeat the trick after a 37% rise from the share price in a year. However, Index won’t be able to do so until the annual results in March as they have a seat on the board and are therefore prohibited from selling until then.

The FTSE 100 ended its four-day losing streak to climb 27.95 points to 5899.78, with a better showing from retailers offsetting more woe for miners and oil firms.

Sports Direct bucked the trend, however, 3.9p cheaper at 399.1p, as broker downgrades continued to smash the sporting-goods retailer lower following Friday’s shock profit warning.

Haitong Research slashed its rating to neutral and analyst Tony Shiret explained: “There remains low visibility on the business financials and we cannot rule out making further forecast reductions.”

With a market value of less than £2.2 billion, the company looks set to be relegated from the FTSE 100 at the next reshuffle in March barring a drastic turnaround.

Jefferies boosted the housebuilders with upgrades to buy for Berkeley, up 151p to 3689p, Barratt Developments, 19p richer at 613.5p, and Galliford Try, 36p better off at 1500p. 

A shortage of housing, a pro-home ownership government and rising wages was behind the decision.

Great Portland Estates improved 10p to 803.5 after revealing it let out 122,600 feet of space during the quarter, worth £7.7 million in rent to the London property investor.

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Online fashion firm boohoo.com put on 2.5p to 39p after lifting annual sales growth guidance from 30% to 35% following a 45% rise to £73.7 million over the last four months. It said annual profits would still be in line with current expectations.

KBC Advanced Technologies soared 59.2p, or 48%, to 183.2p after the energy software company agreed to a £158  million takeover by America’s Aspen Technology.

Source Article from http://www.standard.co.uk/business/market-report-just-eat-shares-fall-on-fears-its-backers-will-sell-more-a3154526.html

January 13, 2016 |
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