Ocado shares soar as sales grow

 
Suzie Neuwirth

ONLINE grocer Ocado’s share price soared nearly 20 per cent this morning, following an announcement of sales growth and ongoing negotiations with supermarket chain Morrisons.

In an announcement made at today’s annual meeting, the FTSE 250 company said that it has benefitted from “increasing loyalty and spend” from existing customers and the expansion in customer demand for online grocery shopping.

Ocado affirmed that it is in discussion with Morrisons over a possible partnership and that such an agreement would not impact its existing deal with rival chain Waitrose.

“The board is encouraged by the progress of the business so far this year, and believes the company is well placed to exploit the fast growth in online grocery retailing,” it said.

Ocado shares were 19.46 per cent up at 249.20p at 09.28 GMT.