Another year and still no profit at Ocado
Wednesday 01 February 2012
Ocado, the online grocer, has failed to deliver its first pre-tax profit in 10 years, amid a sharp slowdown in sales growth and increased investment at its warehouse to address capacity constraints.
But Tim Steiner, chief executive, was bullish about "accelerating" sales growth this year, and said its plan to move to a second distribution centre in Warwickshire in a year's time is "on time and on budget".
The City appeared to like the message, sending its shares up 6.9p, or 8.6 per cent, to 87.1p.
Despite this, Ocado's share price remains at less than half the 180p it floated at in July 2010.
Clive Black, analyst at Shore Capital and a long-time sceptic of Ocado, said: "The good news for investors is that there is no major warning or new disappointment after a series of warnings and quieter downgrades across the market."
Ocado, which delivers Waitrose and its own-label groceries, made a pre-tax loss of £2.42m for the year to 27 November, down from losses of £12.2m.
Total sales rose 16.6 per cent to £642.8m, lower than the 29 per cent growth the previous year.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 2 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 5 Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...