Ocado reveals impacts of Andover fire on business

Ocado reveals impacts of Andover fire on business

Ocado issued its half year results on Tuesday outlining the impacts of the Andover fire on its business.

Shares in Ocado (LON:OCDO) were trading over 5% on Tuesday morning.

The business reported a loss before tax of £142.8 million as a fire at its warehouse facility in Andover earlier this year took its toll, with the fire itself costing the business £110 million.

Roughly 200 firefighters and 20 fire engines were sent to control the fire back in February, which was brought under control over a day after it erupted.

Retail revenue growth was also hit by the blaze and it is estimated that the fire had a 2% impact on sales in the half.

Ocado said that across the entire year, the Andover fire would have a £15 million impact on group earnings.

“In the last six months the centre of gravity at Ocado Group has shifted. Our exciting new joint venture with M&S creates further growth opportunities for both parties in the U.K. and allows Ocado Group to increase focus on growing our Ocado Solutions business and innovating for our partners,” Tim Steiner, Chief Executive Officer of Ocado, commented in a statement.

“At the same time we are beginning to apply our technology skills and expertise to other related activities which we expect to be of benefit to our Solutions partners as well as to other Ocado Group stakeholders,” the Chief Executive Officer continued.

“The innovation factory we have created is founded on a near twenty-year heritage of constant re-examination and reinvention of technology to provide the best customer experience.”

“We have never had as many opportunities to grow as we do today. As we look to successfully scale our business and deliver outstanding execution to our partners, our challenge will be to select and prioritise the most attractive of these opportunities.”

Shares in Ocado Group plc (LON:OCDO) were up 5.25% as of 10:42 BST Tuesday.