Ocado boss to be questioned on M&S food delivery deal at annual results

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Ocado M&S
// Ocado will announce full-year results on Tuesday
// Ocado’s shares bounced on reports of the potential Marks & Spencer deal

Ocado is set announce its full-year results this week as speculation mounts that it is close to signing a food delivery deal with Marks & Spencer.

The online grocery retailer saw its shares bounce on reports of the potential deal, and boss Tim Steiner will be questioned on the tie-up when he invites questions in on Tuesday.

Ocado currently has a tie-up with Waitrose, but it’s thought that M&S could step into the breach when the Waitrose contract ends next year.

“Interesting rumours recently of secret talks between Ocado and M&S on a number of possibilities, including grocery deliveries and even a suggestion that M&S might buy Ocado’s entire supermarket delivery operation to leave Ocado free to focus on its technology side,” The Share Centre said.

Ocado’s shares have risen more than 30 per cent since the end of December.

Meanwhile, city analysts tip Ocado to post a decline in full-year earnings.

The group is expected to see earnings fall by 10 per cent to £75.7 million.

The figures will come after the firm increased its revenue and order numbers in the final quarter of last year.

Revenue climbed by 12 per cent to £390.7 million in the 13 weeks to December 2.

Ocado handled 320,000 orders each week during the quarter, marking a 13.1 per cent increase on the same time last year.

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