Online supermarket Ocado is set to tell investors at Friday's annual general meeting (AGM) that it has made 'significant progress' and is 'well placed' to exploit growth in the online grocery retail industry.
The meeting will also see the chairmanship passed from Lord Grade to Sir Stuart Rose.
In a statement made at the AGM, the company will say: "The company has continued to grow sales as it benefits from increasing loyalty and spend from existing customers and attracts new shoppers, supported by further expansion in customer demand for online grocery shopping.
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
"In February 2013 operations commenced at Ocado's second Customer Fulfilment Centre at Dordon, Warwickshire, which opened on time and on budget, and provides the operational platform for significant future growth.
"Ocado is in discussions with Morrison Supermarkets, which may lead to an agreement to facilitate Morrison commencing an online business in the UK. Any such agreement would be complementary to Ocado's existing partnership with Waitrose, which would be unaffected by any potential agreement with Morrison - product would continue to be sourced with Waitrose, and Ocado customers would continue to buy exclusively from the existing Ocado, Waitrose and branded ranges.
"Ocado reconfirms that the arrangements under discussion do not involve Morrison acquiring either the whole of, or an equity stake in, Ocado. Discussions are ongoing, and there can be no certainty that an agreement will be reached. A further announcement on this topic will be made in due course."
Ocado's share price leapt 13.37% to 236.50p by 09:15 Friday.
NR
-
Rightmove: UK asking prices hit record high but Britain enters buyer’s marketHigher property taxes are stifling the typically-busy spring selling season and buyers are benefiting from more choice, meaning sellers must price their homes more competitively
-
Inheritance tax reforms: government urged to rethink curbs on rural reliefsMPs want the government to delay changes to inheritance rax reliefs for farmers
