Ocado is bruised after yet more bashing from analysts
OCADO received yet another mauling at the hands of an analyst in the run-up to its proposed £1bn flotation.
Evolution’s Dave McCarthy joined the growing list of analysts to bash the online grocer as it attempts to convince investors to part with £200m despite never having turned a profit.
McCarthy raised concerns over whether the fundraising will be enough to achieve the ambitious expansion plans put forward by the Ocado board.
He also questioned the directors’ remuneration asking for clarification over how much of the new cash will make its way into the pockets of the management team.
An Ocado spokesman said McCarthy had missed a £100m capex facility the firm has in place. He said: “Post IPO, Ocado will have… sufficient funding to build fully [a second depot] to £1bn in sales capacity. We have no expectation of further funding.”
The spokesman would not comment on speculation the firm had been warned against offering shares to its staff and customers. The uptake of these shares appears to be well below initial estimates.