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The boss of Ocado has urged disgruntled shareholders to keep the faith as the group posted rising sales and narrowing losses.
Tim Steiner said investors should believe in the online grocer and technology company despite the stock falling nearly 90 percent in less than four years.
“I’m not worried about investors losing confidence, because they shouldn’t,” he said. “We have a clear plan and we are executing it.”
Setbacks in the rollout of its robotic warehouses with overseas partners, as well as concerns over progress on its joint venture with Marks & Spencer, have raised alarm bells.
Setbacks: Ocado boss Tim Steiner (pictured with partner Patrycja Pyka) said investors should believe in the online supermarket and technology company.
Even Bernstein analysts, long-time supporters who describe themselves as “one of the last bulls standing,” turned on the company this week, declaring: “The ‘jam tomorrow’ story is now less jam, more tomorrow.”
They downgraded their rating on Monday, sending Ocado Share fell 10 percent in its worst day in two years.
Sustained selling since its peak in 2020 during the height of Covid has sparked speculation it could become a takeover target or move its listing to New York.
But beleaguered investors yesterday cheered some much-needed good news after sales rose 12.6 per cent to £1.5bn in the six months to June 2.
Half-year losses narrowed to £154m from £289.5m last time.
That sent the shares up 20 percent in early trading, although they gave back some of the gains to end the day up 5.9 percent, or 20.1 pence, at 360.5 pence.
John Moore, senior investment manager at RBC Brewin Dolphin, said “Ocado is at a crossroads” as to whether its turnaround plan will be successful.
“There is a lot of ground to make up to get to where many analysts expected it to be. Some self-help will be needed to significantly reverse the share price decline of the past three years.”
Steiner told investors there would be no immediate listing on the New York Stock Exchange, but did not rule it out.
He said: “I think the London market can be difficult for some companies. In the future, as a global technology company, could you consider other markets?
You could. We are currently a UK listed public limited company and I have no immediate plans to change that.
There was little new information on a dispute over payments between Ocado and M&S, but Steiner said they were continuing to “engage constructively”.
Ocado says it is owed a final payment of £190.7m by M&S as part of the £750m 50-50 merger agreed in 2019.
But M&S bosses say they should not have to pay because the company has failed to meet its targets.
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