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Ocado shares rise as sales accelerate

Published: 05:05 11 Sep 2014 EDT

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Shares in Ocado (LON:OCDO) rose 3% in early trade as the grocery delivery group unveiled a solid quarterly trading update.

It showed that gross sales were ahead 22.5% at £231.9mln, although the average order size fell 1.7% to £111.64.

Chief executive Tim Steiner told investors: "The retail environment is challenging with an increased level of promotional activity and price reductions across the industry.  

“However, due to the strength of our offer, we expect to continue growing sales broadly in line with, or slightly ahead of, the online grocery market."

The shares, down more than a quarter in the year to date, rose 4% to 324.4p.

Numis, a ‘buyer’ of the stock with a price target of 500p, was impressed by the acceleration in sales.

“[We are] encouraged by the solid top-line progress and clear share gains, seeing huge long-term potential for Ocado to benefit from the shift online and leverage its market-leading IP,” it said in a note to clients. 


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