Top story

Ocado (OCDO) has yet again reported double-digit revenue growth – ahead of analyst expectations – with group sales up 17.3% in its third quarter as the average orders per week jumped 16.6%. However, there is still no sign of that much-vaunted first international partnership the retailer has promised for this year.

Group gross sales, which includes the Morrisons tie up, rose in the 12 weeks to 9 August to £272m, compared with £231.9m in the same period a year ago. Ocado’s retail sales, made up of Ocado.com, Fetch.co.uk and Sizzle.co.uk, was also up 15.3% to £252m.

Basket size fell 1.1% in the quarter from £111.64 a year ago to £110.46, but average orders each week shot up 16.6% to 190,000.

CEO Tim Steiner said: “We are pleased with the continued steady growth of our business in a retail environment that remains tough.

“We believe our commitment to improving what we offer to customers through innovation and our proprietary IP will support further growth. Notwithstanding the competitive nature of the marketplace, we expect to continue growing slightly ahead of the online grocery market.”

Shares in Ocado opened 2.4% higher at 323p, with investors not yet spooked by the lack of news on the international front.

Morning update

Real Good Food (RGD) has appointed David Newman as finance director with immediate effect. Newman, who has been the food group’s company secretary since 2010, started his career as a financial accountant with Dawson Group and subsequently held senior financial roles at Pirelli Group, J Mowlem & Co and Napier Brown. In 2005 he became financial controller of Real Good Food following its takeover of Napier Brown. Executive chairman Pieter Totté said: “David originally joined the Napier Brown business in October 1995 as financial controller and has played a key role in the development of our financial and IT systems throughout that time. He brings to the role a wealth of experience and knowledge across the company and he will be a strong addition to the board.”

Yesterday in the City

Morrisons (MRW) shares retreated a hefty 4.5% yesterday to an 11-month low of 157.8p as European stocks were hit by investor caution ahead of the US Federal Reserve’s interest-rate meeting later this week. The supermarket’s stock is down more than 10% since last week’s interim results showed pre-tax profits had fallen £113m to £126m. The share price was not helped by a cut in profit forecasts from analysts at HSBC.

Marks & Spencer (MKS) joined Morrisons in the top five FTSE 100 fallers as it slipped 2.6% to 492p.

Tesco (TSCO) and Sainsbury’s (SBRY) also failed to escape the general decline in FTSE stocks, down 1.6% to 178.5p and 1.6% to 229.6p respectively.

Ocado (OCDO) was one of the few stocks to keep its head above water ahead of this morning’s Q3 results. It finished the day 1.4% up at 316.8p. Booker (BOK) was also up 0.4% to 180.1p as its Musgrave takeover formally completed.

The FTSE 100 fell 33.2 points (0.5%) to 6,084.6 thanks to big falls for miner Glencore and the supermarkets as more weak data from Chinese and the possible news from the US weighed on markets.

Topics