The end of pandemic lockdowns didn’t bode well for food delivery firms like Deliveroo, once a promising addition to the London Stock Exchange. Now it’s trying to navigate the cost-of-living crisis, which caused orders to decline in the first quarter. But the great British takeaway lives on, with revenue in the UK and Ireland climbing 11% from January to March. In other news, Israeli billionaire Teddy Sagi sweetened his bid for software solutions firm Kape Technologies.
(Bloomberg) — The end of pandemic lockdowns didn’t bode well for food delivery firms like Deliveroo, once a promising addition to the London Stock Exchange. Now it’s trying to navigate the cost-of-living crisis, which caused orders to decline in the first quarter. But the great British takeaway lives on, with revenue in the UK and Ireland climbing 11% from January to March. In other news, Israeli billionaire Teddy Sagi sweetened his bid for software solutions firm Kape Technologies.
Here’s the key business news from London this morning:
In The City
Deliveroo Plc: Orders fell 9% in the first quarter as customers cut back on meal deliveries.
- Users placed 72.1 million orders in the first quarter, down from 78.8 million in the same period a year ago, the London-based company said
- Deliveroo is not alone: Rival Just Eat Takeaway.com NV also reported a drop in first-quarter orders on Wednesday
Kape Technologies Plc: The software solutions company received a sweetened takeover bid from Teddy Sagi, its largest shareholder.
- Sagi, the founder of gambling software company Playtech Plc and owner of London’s Camden Market, made a final offer at $3.60 per share, up from $3.44 per share previously
Rio Tinto Group: The world’s top iron ore producer said shipments of the steelmaking ingredient rose to a first-quarter record as it ramped up output at a major new Australian mine.
- The London-based miner, which sells the majority of its iron ore to China, exported 82.5 million tons of the material over the three months to March 31, up 16% year-on-year
- China’s post-Covid outlook was “improving,” buffering commodity prices against weak manufacturing in Europe and the threat of recession in the US, the company said
In Westminster
No stranger to a crisis, Northern Ireland geared up to celebrate this month as US presidents past and present flew in to join British, Irish and local leaders marking 25 years of peace since the region’s violent “Troubles.” But, just as in 1998, the Democratic Unionist Party is frustrating progress. The pressure to back down is immense.
Britain’s two main mortgage lenders have been calling house prices in opposing directions since the start of the year, leaving economists to wonder whether the real estate market is going up or down. The answer to the riddle is one of size.
Meanwhile, the price of a full English breakfast jumped to a new high as stubborn food price inflation makes life harder for consumers.
In Case You Missed It
Meta Platforms Inc. is planning to cut or relocate its London-based Instagram employees, a person familiar with the matter told Bloomberg. The London office became a centre for growth for the social-media app when its leader, Adam Mosseri, moved there temporarily last year.
Finally, the latest In The City podcast episode is taking a closer look at Harrods — and why the storied London department store is now doing better than before the pandemic. Listen here:
Looking Ahead
UK retail sales will be in focus at 7 a.m. tomorrow. Bloomberg economists expect the volume of goods sold in stores and online to remain under pressure amid the ongoing cost-of-living squeeze. The wettest March in over 40 years may have also curtailed sales in clothing and gardening equipment, according to the economists.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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