SHARES in Ocado surged yesterday after the online grocer agreed a funding deal and vowed to boost its ranges and marketing efforts.
As well as selling new shares worth some £36 million, the group has extended the terms of its £100m loan facilities with its banks through to 2015.
The backing came as the group, whose range includes products supplied by Waitrose, reported improved sales growth of 13.7 per cent for the six weeks to 11 November, including a new high of 140,000 orders per week. With Ocado hit by the cost of opening its second delivery centre, in Dordon, Warwickshire next February, there were fears in the City that it could breach loan agreements this month.
Shares closed up 24 per cent at 75p on relief at the funding boost and the improved trading.
Chief financial officer Duncan Tatton-Brown said the firm now had the continuing resources to focus on increasing its ranges.
Waitrose was able to go head-to-head with Ocado from last year, when a clause banning it from offering online deliveries inside the M25 was dropped.
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Saturday 18 May 2013
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