LIVE BUSINESS: CMA steps up Barratt-Redrow probe; Deliveroo posts profit; Beazley earnings double

Deliveroo has finally achieved both profit and free cash flow milestones in the six months to the end of June as customer demand stabilised.

The food delivery business reported a profit of £1.3m, compared with a loss of £83m a year ago, and free cash flow of £3.2m, compared with negative cash flow of £27.7m.

Founder and CEO Will Shu said:

‘Looking ahead, while there remains uncertainty in the external environment, I am encouraged by the inflection we are currently seeing in consumer behaviour in many of our markets.

‘The Deliveroo platform is more powerful than ever and we continue to respond to the external environment while continuing to optimise our proposition for consumers, drivers and merchants.

“We operate in attractive verticals, in large and under-penetrated markets, and it is clear that there is a lot of room for growth in our industry.”

The FTSE 100 rose as global markets recovered after a sharp sell-off earlier this week sparked by fears over a US recession and tensions in the Middle East.

The blue-chip index rose 1.75 percent, or 140.19 points, to 8,166.88 as the Bank of Japan dampened talk of further interest rate hikes. Last week, the central bank raised rates for the second time in 17 years.

“As we are seeing strong volatility in domestic and international financial markets, it is necessary to maintain the current levels of monetary easing,” said Shinichi Uchida, deputy governor of the Bank.

Responding to the CMA’s findings, Barratt and Redrow said they are “working together” to ensure the deal becomes effective “as soon as possible in the second half of the year”.

Barratt boss David Thomas:

“We are pleased that the CMA has found that there would be no harm to competition in all but one area where Barratt and Redrow overlap.”

“We remain confident that the merger of Barratt and Redrow will be approved and will be in the best interests of our customers and wider stakeholders. Together we plan to build on our shared strengths and create an exceptional homebuilding company, in terms of quality, service and sustainability, helping to deliver the homes the country needs.”

Redrow CEO Matthew Pratt:

‘Barratt and Redrow are two leading housebuilders with a strong reputation for quality, service and sustainability that has been built up over decades.

‘With the CMA process complete, we look forward to our future as one team, accelerating the delivery of the high-quality homes the country so urgently needs.’

Barratt Development’s £2.5bn takeover of housebuilding rival Redrow could be subject to an in-depth “Phase 2” investigation after a regulatory probe flagged competition concerns.

The Competition and Markets Authority said it had concerns about “the local area around the Barratt development in Whitchurch”, which includes nearby towns such as Nantwich, Ellesmere and Market Drayton.

The regulator is concerned that the deal could lead to higher prices and lower-quality homes for buyers in the area, where both companies have a presence.

It said: ‘Barratt and Redrow now have the opportunity to bring forward proposals that address the CMA’s concerns in the local area around the Tilstock Road development, to avoid the deal moving to a Phase 2 in-depth review.’