Capacity problems hit profits at Ocado
Online grocer Ocado said its full year profits would be up on last year but had been hampered by distribution issues.
Online grocer Ocado said its full year profits would be up on last year but had been hampered by distribution issues.
The company, which sells Waitrose goods, said earnings were expected to be in the range of £27.5m to £28.5m in the year to 27 November, compared to £22m in 2010.
Gross sales were approximately £643m for the full financial year, up 16.7% on the previous year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Ocado said the group continued to operate under capacity constraints at its Hatfield distribution centre in the fourth quarter.
Profit margins were impacted by these production issues as well as the employment of additional labour at Hatfield to protect customer service levels during work to install further capacity.
This increased labour was expected to be phased out as the installation works were completed, the company said.
The construction of a second distribution hub in Warwickshire was on time and within budget, it added.
Chief executive Tim Steiner Tim Steiner, said he was disappointed that Ocado did not achieve as large or as early an increase as had been originally planned.
"There is more work to be done and we are focused on delivering capacity and sales growth in the first half of 2012," he said.
For the full financial year, 98.3% of items were delivered exactly as ordered and 92.3% of orders were on-time or early for their one hour delivery slots, Ocado said.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
FCA reveals 'once in a generation' advice changes - what the reforms mean for you
Consumers to get free access to financial advice type help for pensions and investment following proposed changes from the regulator
-
Zoopla: House prices slows to 1.4% in May as rate of sales at four year high
The average UK property now costs £268,400, Zoopla says, but some areas of the country are experiencing much higher price growth than others.