Ocado has reported its strongest-ever Christmas trading period, capping off a successful fourth quarter that saw retail revenue surge by 17.5% to £715.8 million.

The company has had its critics, and these results should go a long way to temper their negativity.

The joint venture between Ocado Group and Marks & Spencer enjoyed robust growth in its active customer base, which expanded by 12.1% to reach 1.1 million customers.

The company’s strategic focus on offering unbeatable choice, unrivalled service and competitive pricing has paid off, with customers shopping more frequently throughout the key festive trading period. TV adverts explaining the reasonable value of Ocado’s service and price matching against Tesco has worked.

Average orders per week climbed significantly by 16.9% to 476,000, whilst maintaining stable basket sizes of around 44 items.

Ocado shares surged 10% in early trade.

During the festive season, Ocado’s comprehensive Christmas range proved particularly popular with shoppers. The M&S party food selection was a highlight, with items such as hot honey halloumi and pigs in blankets drawing considerable interest. The company also saw strong performance in its premium cheese offering, including selections from Paxton and Whitfield, whilst noting a growing trend in low and no-alcohol beverages over the Christmas period.

Ocado said the strong festive period is set to continue into FY2025 and will provide further guidance when full-year results are released in February.

Operational efficiency showed marked improvement, with the company’s Customer Fulfilment Centres (CFCs) exceeding their design capacity during the peak Christmas period. The newest facility in Luton achieved 269 units per hour, contributing to a network-wide efficiency increase of 15% compared to the previous year.

“2024 was a year of strong growth. In the fourth quarter, we accelerated sales again – reaching 500,000 orders per week for the first time, at the end of November,” said Hannah Gibson, Ocado Retail’s Chief Executive Officer.

“We’ve achieved this growth by being laser focused on customer service and delivering unbeatable choice, unrivalled service and reassuringly good value to the households and families that we serve. We’ve made a series of significant improvements  – including making sure customers can buy all their favourite M&S products, ensuring our service is near perfect, shifting our value perceptions as customers realise how much we’ve moved on price and helping new customers discover Ocado.

“As we enter the next phase of our strategy, we are excited about the future of online grocery and our role in shaping it. Priorities for this year are raising the bar again in our leading customer proposition, making further progress on improving profitability and transitioning the business onto new technology platforms.”

The FTSE 100 fell on Monday as pressure on UK assets continued following a broad sell-off in US equities after the release of December’s Non-Farm Payrolls.

The downward spiral in UK bonds and the pound has accelerated since the US jobs number which suggests the Federal Reserve will be in no rush to cut rates and may not amend rates until late 2025.

“Equity trading on the London market has got off to a subdued start as investors continue to assess the implications of turmoil on the bond markets and the outlook for the global economy.  Friday’s jobs figures showed the US economy is more resilient than expected, quashing hopes for multiple interest rate cuts from the Federal Reserve this year,” said Susannah Streeter head of money and markets, Hargreaves Lansdown.

Streeter continued to explain how developments in the US were making the UK effectively powerless against the factors causing volatility in UK assets.

“With the dollar strengthening against a basket of currencies it also runs the risk of higher inflation being exported, due to the higher cost of imports, adding to headaches for other central banks. UK government borrowing costs have crept up even higher, with the yield on 10-year gilts nudging 4.9%, a highly unwelcome hurdle, levels not seen since the Great Financial Crisis.”

Higher bond yields will be a major concern for investors in most industry groups, baring the banks that enjoy higher interest rates.

That said, the visible positioning moves made to portfolios by selling down utilities and retailers and buying banks last week were less pronounced on Monday.

However, the falling pound failed to inspire any major buying activity in London’s leading stocks, leaving the index languishing in negative territory.

“The dollar is flexing more muscle amid expectations that borrowing costs will stay higher for longer, helping push down the pound to $1.21 levels not seen since October 2023.  Sterling has also dipped against the euro to 1.18. It comes amid ongoing concerns about the outlook for the UK economy, with the spectre of stagflation hovering,” Streeter said.

IAG was among the top fallers as investors booked profit after a steady ascent for the share price in recent months. Surging oil prices may have prompted some investors to take profit in IAG as fresh sanctions on Russia sent WTI oil 2% higher.

“Crude oil futures continued to advance, driven by expectations that expanded U.S. sanctions could disrupt Russian crude exports to key buyers, China and India,” said Joseph Dahrieh, Managing Principal at Tickmill.

“The sanctions target major Russian oil producers and vessels involved in transporting Russian oil, aiming to reduce Moscow’s oil revenue. This reduction in Russian exports could push global crude prices higher at least in the near term, as the market adjusts to the loss of supply from one of the world’s largest oil producers.”

London’s weighting towards oil helped the FTSE 100 outperform European indices with BP and Shell gaining more than 1%.

Hargreaves Lansdown has outlined the seven of the most important trends for investors and savers using ISA to consider in 2025, ranging from the most popular stocks and shares ISA investments to the popularity of cash ISAs.

“ISAs never stand still. Various governments have tweaked the rules over the past 26 years – so they’ve evolved from a limited range to something altogether more substantial and flexible. At the same time, we’ve changed too, and how we use ISAs has developed. This year, in particular, there have been some interesting trends,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.

Hargreaves Lansdown, in their own words, present their seven trends for ISAs in 2025:

7 ISA trends 

1. Cash ISAs have had a huge year

We saw a cash ISA season bonanza, with a long tail that stretched all year. Savers smashed records in April, paying £11.7 billion into cash ISAs – beating every other month for the past 25 years. They then remained committed, and cash ISAs drew in billions of pounds long after the traditional season was over. By the end of November (the most recent data), savers had put £36.3 billion in cash ISAs since the beginning of April.

Why

Income tax thresholds remain frozen, which is pushing more people into higher tax brackets. The OBR estimates that in the current tax year there will be 2.5 million extra higher and additional-rate taxpayers than there would have been if tax thresholds had risen with inflation.

At the same time, although savings rates have fallen from the peak, there are a number of accounts offering just shy of 5%. It means many more people worrying about tax on savings, which has pushed cash ISAs up the agenda for millions of savers. Concerns about potential tax changes in the Budget played their part too, with more savers realising the benefits of being able to protect their savings from the whims of successive chancellors.

These figures support what we’ve been seeing across our Active Savings clients. Within Active Savings, in April we saw a 50% jump in new cash ISA clients. This owes something to the fact we launched our new cash ISA, which allows savers to hold money with more than one bank and in more than one account, within the same ISA wrapper. Between the start and end of 2024, assets in the HL Cash ISA rose 230%, and a cash ISA became the first choice of more than half of HL’s new savers.

2. LISAs have had a record-breaking year so far

This is the biggest ever tax year for the Lifetime ISA, with more people paying into an HL Lifetime ISA during the tax year so far (to the end of December) than any other year on record. It’s up 24% in a year. 

The most recent HMRC figures show a record of 755,000 LISAs were paid into during the tax year 2022/23. £1.87 billion was contributed during 2022/23 – a record sum – which was up 10% in a year.

It offers a leg up onto the housing ladder for tens of thousands of young people every year. Buying a home of your own is hard enough – and the government bonus from a Lifetime ISA is the only help some people will get in building a deposit. It could be even more effective if the cap on the value of property people could buy through the scheme was linked to house prices – so buyers are protected from being unable to use their LISA because prices have risen in their area.

The Lifetime ISA is also a key tool in saving for retirement for those who aren’t putting enough aside, including self-employed people. Those who work for themselves don’t benefit from an employer contribution on their pension, so for a basic rate taxpayer, the benefits of paying into a Lifetime ISA are the same as a pension, and both grow free of tax. However, all money withdrawn from a LISA in retirement is tax-free, whereas for a pension, after the tax-free cash, you could end up paying income tax.

The LISA can help support the 1.2 million households that have a self-employed earner paying the basic rate of tax. Analysis by the HL Savings & Resilience Barometer also shows that half a million self-employed people are hoarding more cash than they need to – while carrying a significant retirement savings gap. This cash could be diverted into investment with the LISA, to close the gap.

A few small tweaks to the Lifetime ISA could make an enormous difference for self-employed people. The age that people can open and pay into a Lifetime ISA should be increased to 55, and the penalty for withdrawing for any reason other than for a first property or retirement needs to be cut to 20%. Not only does the current penalty punish people for trying to do the right thing, fear of the penalty can also put people off altogether. 

3. Stocks and shares ISA numbers are climbing

By the end of 2024, the number of HL stocks and shares ISA clients was up 4% in a year. Over the past five years, it has risen by 50%, to a new high. Broader HMRC figures show the number of people paying into stocks and shares ISAs each year across the whole market has also trended upwards over time, although the data is less up-to-date.

In the first half of the current tax year there was a major rush to top up ahead of the Budget, because dire warnings of tax rises meant more people sought sanctuary in tax free ISAs. It was the second busiest first half of the tax year of all time for HL stocks and shares ISAs – after the pandemic peak of 2022. We also saw a flood of people using share exchange (Bed & ISA) to move investments into ISAs.

Some investors’ worries were realised when the Budget announcement came, and the capital gains tax rate on stocks and shares rose. Coming on the back of significant cuts to the capital gains tax and dividend tax allowances in recent years, it was a bitter blow for those with investments outside an ISA. 

By investing through a stocks and shares ISA, you can avoid CGT completely, both when you sell up and cash out and whenever you rebalance your portfolio. You also protect your investment from dividend tax. Bed and ISA, meanwhile, allows you to realise gains within your annual capital gains tax allowance of £3,000 by selling up and immediately buying back within a stocks and shares ISA. Investors who are sitting on large gains have the comfort of knowing that they’re doing what they can to eat into the gain using their annual allowances, and protecting that portion of their portfolio from CGT and dividend tax in future too.

4. The average age to hold an ISA is falling

The average age of HL ISA holders has fallen over the years, from 54 five years ago to 51 today. The bulk of the movement came during the years of the pandemic, but it has held firm ever since. 

Separate HMRC figures show that despite the fact that most ISAs are held by people aged 65 and over, when you look specifically at the ISAs people paid into during 2021/22, there were more investors contributing aged 25-34 than any other age group. 

It reflects the fact that younger people are now more interested in investment, which has become a more mainstream option among younger generations. Some newer investors will have been led astray by social media influencers and are dabbling in the dangerous waters of crypto currency, but the fact so many of them have moved into ISAs that they’re bringing the average age down is a great sign that significant numbers are taking a sensible long-term approach to investment.

5. The gender split of ISA holders isn’t improving

Over the past five years, the proportion of HL ISA investors who are women has fluctuated within a narrow range. It fell during the pandemic, and although it has recovered largely since, only 38% of HL ISA investors are women – compared to 39% in December 2019. It reflects the HMRC figures from 2021/22 that show that despite women holding slightly more ISAs overall than men, they’re far more likely to pick cash ISAs. Some 69% of those paying into ISAs during the year only paid into a cash ISA – compared to 56% among men.

Women’s reluctance to invest owes a great deal to the fact that on average they earn less than men, and the more you earn, the more likely you are to have an investment ISA. Women also tend to have less secure incomes, because they’re more likely to have breaks in their career for caring responsibilities or work part time and face a drop in income. It means some may feel they cannot face the risk involved with investment. There’s no denying that there is risk involved, but the way we tend to assess long-term risk is faulty. We feel losses more keenly, so women can over-estimate the risk that investments will lose money over the long term. They may also underestimate the risk their cash ISA will lose value after inflation. 

6. Investors are holding more in their ISAs

On average, at the end of 2024, HL ISA investors held £59,600 each in their ISAs. This has fluctuated, as more new ISA investors bring the average down, and growth for current investors pushes it up. However, it has trended upwards during the last couple of years. 

7. The most popular stocks and shares ISA investments are passives.

Of the most bought funds in ISAs in 2024, passives dominated – making up six of the top ten funds, and all of the top five. US indices in particular attracted investment, with UBS S&P 500 Index bought the most – followed by Legal & General US Index. The next three also have US weightings – including Legal & General International Index Trust, Fidelity Index World and Legal & General Global Technology Index Trust.”

Technology Minerals shares rose on Monday after announcing it has secured a contract to recycle lithium-ion batteries from a major global automotive manufacturer.

The company’s battery recycling subsidiary, Recyclus Group Ltd, in which Technology Minerals holds a 48.35% stake, will process hundreds of electric vehicle battery packs at its industrial facility in Wolverhampton.

The agreement marks Recyclus’ first international contract, with batteries to be sourced both from within the UK and overseas as part of the automotive manufacturer’s battery recall programme.

Technology Minerals shares rose 25% on the news but are still down 86% over the past year.

“We are thrilled to collaborate with a globally renowned company that shares our commitment to driving sustainability in the automotive sector. The multinational scope of the partnership highlights the industry-leading nature of Recyclus’ solutions, building further momentum for the company and reinforcing our position as a trusted service provider for Li-ion battery recycling,” said Robin Brundle, Chairman of Technology Minerals and Director of Recyclus.