Ocado shares jump by a fifth
Ocado takes a turn for the better after attractive profit forecasts were announced


Shares in the online retailer Ocado jumped by a fifth recently after its latest interim results showed it has “nudged up” its cash flow and profit forecasts, says Isabella Fish in The Times.
Not only have pre-tax losses at the group narrowed to £154 million in the six months to the end of May, but group revenue also rose by 12.6% to £1.5 billion. It also expects annual underlying cash flow to climb by £150 million, up from a previous forecast of £100 million. Ocado’s solutions business, which licences warehouse and logistics technology to retailers, seems to have done particularly well, with sales increasing by 21.8% to £241.4 million.
The upgrade will “go some way towards allaying investors’ fears over the business”, says Lex in the Financial Times. The company has suffered a “series of blows”, including a decision by US supermarket chain Kroger to close three sites powered by Ocado’s technology, along with declining revenue from its retail arm.
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
Shareholders will also be happy that Ocado’s management has said the group will not need to raise more cash and repeated its plan to become profitable on a pre-tax basis in five years. The upgraded results and guidance will certainly be “music to the ears of investors hoping Ocado might be in a better position to start delivering the goods financially in the not-too-distant future”, says AJ Bell’s Dan Coatsworth.
However, it still needs to “make a habit of regularly producing results like these” if it wants to “make the critics put away the knives they’ve been sharpening for some time”. That “may not be easy” given its “slow progress” in signing up new technology partners for its grocery logistics platform, while a few existing partners “have scaled back expansion plans involving Ocado”. Ocado’s relationship with its UK retail partner, Marks & Spencer, also remains “fragile”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
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.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Is property investment still as safe as houses? Why golden era could be over
The golden era of property is over and investors are better off in the stock market, new research suggests
-
What Santander’s takeover of TSB means for customers
Santander is set to buy rival TSB for £2.65 billion. What does it mean for customers, and could we see the TSB brand disappear from the high street?
-
Energy infrastructure companies will provide a lift for your portfolio
Opinion Stacey Morris, Head of Energy Research at VettaFi, highlights three energy infrastructure stocks that she'd put her money in
-
QXO: a compelling opportunity in the building materials industry
Opinion The boss of QXO knows how to make a few billion dollars, and aims to repeat the trick. Investors would be wise to back him, says Jamie Ward
-
Investors can buy into tomorrow’s top global technology stocks today
Opinion Anthony Ginsberg, manager of HAN-GINS Tech Megatrend Equal Weight UCITS ETF, highlights three technology stocks as he tells us where he'd put his money
-
'Seeking out quality and resilience will pay off for patient British investors'
Opinion Gary Channon, chief investment officer of Phoenix Asset Management Partners, and Kartik Kumar, member of the Investment Team, select three stocks
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
Resilient and profitable performers will excel in the era of deglobalisation
Opinion James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King