Ocado

Ticker OCDO

Today's data summary

Market open
% change
+0.81%
Price Pence
1429.00
Change
+11.50
As of 10:15 24 Apr 2019
Market cap. Pound sterling
10,003.65 million
As of 10:15 24 Apr 2019

Latest updates

FTSE 100 ahead

Ocado led the FTSE 100 higher on Tuesday as investors cheered its latest deal to license its food home delivery technology, this time in Australia.

Shares in the company jumped more than 4%, continuing their recovery since a huge fire last month destroyed one of Ocado's UK warehouses.

That rise helped the FTSE 100 eke out a 0.26% gain to finish at 7,196.3 points. The main faller was cruise group Carnival, down 8.5%, after it cuts its profit guidance.

Quick update

chart
BBC

The biggest faller in the FTSE 100 is still Ferguson - perhaps better known as Wolseley - which is now down 10%.

The company has warned about pressure on its profits but also said it was proposing to put in place a new corporate structure to change the group's headquarters and the tax residence of its holding company from Switzerland to the UK.

Ocado is still powering ahead, up 5%, and appears to be at all-time highs as the share graphic shows.

The index is up 27 points at 7,204.76.

Ocado launches deal with Australian supermarket Coles

Ocado CFC in Andover
Reuters

Ocado has signed an agreement with Australian supermarket Coles to develop its online business.

The food home delivery service, which recently signed a deal with Marks & Spencer in the UK, will help Coles process online orders with its unique robotic Customer Fulfilment Centres (CFCs).

One CFC will be built in Melbourne and the other in Sydney, and they should be operational within four years.

Ocado chief executive Tim Steiner said: "Today marks another big moment in the continuing transformation of Ocado."

Coles is one of Australia's largest retailers, with 818 supermarkets across the country.

Ocado like Microsoft?

Fire at Andover
Reuters

Ocado's shares are the biggest gainers in the FTSE 100 after announcing a tie-up with Australian supermarket Coles.

George Salmon, equity analyst at Hargreaves Lansdown: “Last month’s fire at Andover has impacted sales, but that doesn’t really matter for two reasons.

"Ocado has sold half of its retail business to M&S and deals like this one with Coles mean the transformation from niche British retailer to international technology provider is gathering pace".

"It’s not just a case of being in the right place at the right time - Ocado has some of the best technology in the world. If it can deliver the goods with existing agreements and keep getting more partners to sign up, it could become as important in grocery as Microsoft’s operating system is in computing.”

FTSE 100 flat

LSE
Getty Images

In early trading, the FTSE 100 index is little changed, down 3 points at 7,173.86.

But, there are some moves inside the index. Engineering company Ferguson is down 8% after warning that it expects its "trading profit for the full year to be towards the lower end of the range of analysts' expectations".

Ocado is up 5% after announcing a deal, mentioned earlier, with Australian supermarket Coles.

FTSE gains in morning trading

FTSE graph
BBC

The FTSE 100 has remained on the up this morning, keeping comfortably above 7,300.

By noon it was up 0.53% at 7,337.61.

Market favourites on the rise included Ocado, up 3.97% at 1,192.75, and Antofagasta, up 3.43% at 971.8.

The FTSE 250 has also proved positive, climbing 0.28% to 19,541.22.

Ocado hit by Andover fire

fire in the factory
HFRS

Ocado's revenue rose 11.2% which was impacted by the fire in its Andover warehouse in February, which was equivalent to 1.2% of sales in the quarter.

Tim Steiner, Ocado's chief executive, said: "The fire has been a setback, but it will be only a temporary one.

"Over the last few weeks, our teams have been working hard to minimise any disruption to our customers and we will build a state-of-the-art replacement facility that reflects all the innovations and improvements we have made since Andover opened in November 2016".

Good morning

Welcome to today's Business Live page - we'll be with you until around 9.30pm.

We'll be looking at the latest employment figures at 9.30am; last month's figures showed that unemployment fell by 14,000 in the three months to December to 1.36m.

Among companies reporting today we'll be featuring online fashion retailer Asos and food delivery firm Ocado.

Asos' trading update covers the crucial Christmas period.

With nine days until Brexit, we'll also bring any updates on the changing situation: there's not expected to be a third Meaningful Vote any time soon after John Bercow's intervention yesterday.

As always, we'd love to hear your thoughts on today's news: please get in touch at bizlivepage@bbc.co.uk