Deliveroo is planning for a £250 million return to its shareholders as it continues to reduce its losses, the delivery company’s latest financial results have revealed.

Plans for the shareholder return follow profitability of £39 million in the first half of 2023 for the delivery company which it attributed to improved efficiencies in marketing and overheads.

Losses for the period improved by 46 per cent from around £154 million to £83 million, with Deliveroo stating that the additional £250 million return bringing total capital return to shareholders announced in 2023 to £300 million.

Revenues for the company also rose by five per cent in the first half of 2023 compared with the same period in 2022 – from around £972 million to just over £1 billion.

"Over the last 18 months, Deliveroo has reached adjusted EBITDA profitability ahead of plan, and we are progressing towards our goal of generating consistent positive free cash flow,” said Deliveroo founder and chief exec Will Shu.

“Against this backdrop of strategic progress and growth opportunity, the Board has considered our strong capital position and is proposing an additional £250 million capital return to shareholders.”

Deliveroo recently cited ‘tech debt’ as it continues to expand its delivery service across the UK and form new partnerships.

At the recent Retail Technology Show at Olympia, London, Deliveroo product lead Paul Wilkinson claimed the company completes more deliveries per week than grocer Ocado, explaining that this has meant the company has faced tech debt due to nobody having anticipated when developing the platform that a standard menu would need this much space.

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