Sales setback for Ocado
Online grocer Ocado's difficult start to life as a public company continued yesterday after new sales growth figures failed to impress the City.
The Hatfield firm was forced to slash the price for its initial public offering to 180p in July – down from initial hopes of 200p and 275p – after retail analysts and fund managers hit out at the firm for overvaluing its business.
Shares started to drop as soon as the company was officially listed on July 26, and yesterday's first trading update since the controversial move has failed to have a positive impact.
A 29.5 per cent rise in gross sales to 126.5m in the 12 weeks to August 8 did not boost confidence. Shares last night closed down 11p to 146p.