The boss of Ocado has urged disgruntled shareholders to keep the faith as the group posted rising sales and narrower losses.
Tim Steiner said investors should have belief in the online supermarket and technology firm despite shares falling almost 90 per cent in less than four years.
‘I’m not concerned about investors losing confidence because they shouldn’t be losing confidence,’ he declared. ‘We’ve got a clear plan and we’re executing that clear plan.’
Setbacks in the rollout of its robotic warehouses with overseas partners as well as concerns over progress at its joint venture with Marks & Spencer have set alarm bells ringing.
Setbacks: Ocado boss Tim Steiner (pictured with partner Patrycja Pyka) said investors should have belief in the online supermarket and technology firm
Even analysts at Bernstein, long-term supporters who described themselves as ‘one of the last bulls standing’, turned on the company this week and declared: ‘The jam tomorrow story is now less jam, more tomorrow.’
They cut their rating on Monday, sending Ocado shares down 10 per cent on its worst day in two years.
The sustained sell-off since their peak in 2020 during a Covid boom has sparked speculation it could become a takeover target or shift its listing to New York.
But yesterday beleaguered investors cheered some sorely-needed good news after sales rose 12.6 per cent to £1.5billion in the six months to June 2.
Half-year losses narrowed to £154million from £289.5million last time around.
This sent shares up 20 per cent in early trading, though they gave up some of the gains to end the day up 5.9 per cent, or 20.1p, at 360.5p.
John Moore, senior investment manager at RBC Brewin Dolphin, said ‘Ocado finds itself at a crossroads’ as to whether its turnaround plan will succeed.
There is a lot of ground to make up to get to where many analysts hoped it would be. Some self-help will be required to meaningfully reverse the share price decline of the past three years.’
Steiner told investors there would be no immediate dash to the New York stock exchange, but did not rule it out.
He said: ‘I think the London market can be tough for some companies. In the future, as a global tech company, could you consider other markets?
You could. Right now we’re a UK-listed plc and I have no immediate plans to change that.’
There was little by way of an update about a row over payments between Ocado and M&S, but Steiner said they are continuing to ‘engage constructively’.
Ocado says M&S owes it a final £190.7million instalment as part of the £750million 50-50 tie-up agreed in 2019.
But M&S bosses say they should not have to pay as the venture has failed to hit targets.
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