Investors hope Ocado can deliver the goods at M&S

Ocado is set to unveil its full-year results this week amid speculation that it is close to signing a food delivery deal with Marks & Spencer.

Ocado has a deal with Waitrose which ends next year.

Boss Tim Steiner will be asked about the tie-up when he fields questions on Tuesday. Ocado currently has a tie-up with Waitrose, but it has been suggested that M&S would step into the breach when the existing contract ends next year.

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“Interesting rumours recently of secret talks between Ocado and M&S on a number of possibilities, including grocery deliveries and even a suggestion that M&S might buy Ocado’s entire supermarket delivery operation to leave Ocado free to focus on its technology side,” The Share Centre said.

Meanwhile, City analysts tip Ocado to post a fall in full-year earnings, largely linked to an accounting change.

The group is expected to see earnings drop 10 per cent to £75.7 million, but this falls to between £58m and £61m when taking into account new reporting requirements.