Business

Ocado sees 30% rise in food sales

Ocado Group

Last Updated at 26 Sep 2017, 15:30 GMT *Chart shows local time Ocado Group intraday chart
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Online grocery retailer Ocado saw its sales rise nearly 30% in the last quarter and said it expected to see that pace of growth continue.

Sales totalled £126.5m for the 12 weeks to August, the company said.

Share holders appeared unimpressed, however, with Ocado's share price down nearly 5% in morning trading.

Ocado began listing its shares in July, but a lack of interest among investors forced the company to cut the asking price for the float.

Tim Steiner, Ocado's chief executive, insisted that the listing had fulfilled its purpose of raising the money it needed to expand.

"In this period, Ocado entered the next phase of its development, becoming a public company, and we welcome our new shareholders," he said.

"Given increased customer demand and our need to increase capacity, it was an appropriate time for the company to raise capital for growth."

Analysts are divided over the prospects for the company, which has still yet to make a profit.

The company is also facing increased competition from an increasing number of grocery retailers operating online.

Marks and Spencer and Morrisons are rumoured to be the latest food companies planning to enter the online market.

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