Ocado sees sales growth in rest of 2012

“The third quarter is particularly hard to forecast as we have already seen some disruption from the Jubilee events, and there is uncertainty as to the effect of the forthcoming Olympic Games, but we expect sales growth to increase in the second half of 2012 overall,” chief executive Tim Steiner said.

Ocado, whose range includes products supplied by upmarket grocer Waitrose, made earnings before interest, tax, depreciation and amortisation of £14.9 million in the 24 weeks to May 13.

Ocado’s sales rose 12.0 per cent to £332.3m, with growth accelerating in its second quarter, raising hopes it has got to grips with bottlenecks at its distribution centre at Hatfield, north of London, that led to a string of profit downgrades last year.

Statutory pre-tax profit was flat at £200,000 and the firm ended the period with net debt of £71.3m.

Ocado shares have had a roller coaster ride since floating at 180 pence in July 2010. They hit a low of 52 pence in December but have risen 82 percent in the last six months.

Ocado, founded in 2000 by three former Goldman Sachs bankers, has polarised opinion like few other market debutants.

Fans point to rapid growth in online grocery sales and to its high customer service ratings, but sceptics think its model of filling orders from a central depot will never be as profitable as online operations at established grocers, which mostly pick orders in store.

They also fear Ocado is facing growing competition from Waitrose itself, which has started selling groceries online in Ocado’s heartlands in and around London.

Ocado also named former Fitness First CFO Duncan Tatton-Brown as its new chief financial officer from September 1. He succeeds Andrew Bracey, who quit to join recruitment company Michael Page in January.