Online grocery delivery service, Ocado, reported their first ever profit in the last quarter of last year.
The company, which delivers a wide range of groceries, reported a pre tax profit of £300,000.
Even though the company has yet to make an annual profit, the company was floated last year and valued at nearly £1billion. Whilst the valuation wasn’t met, and shares were floated at 180p each, the share price has risen with a 25% sales increase for the year, and yesterday the shares closed at 220p.
Ocado was formed in 2000, and was created by three Goldman Sachs bankers. The company is still part owned by the John Lewis Pension fund, and Ocado source a large preportion of their food from Waitrose, who are part of the John Lewis Partnership. Despite failure to record a profit since it’s inception 10 years ago, Ocado continues to grow and expand.
Despite the last quarter’s profit, the group still made a £12.2 million loss for the year. This was 52% less than last year and included substancial costs from the companies floatation.
The unique business model is as yet unproven, but seems to be on the verge of becoming profitable going forward.
The company also saw the average number of orders per week increase 31% to just over 90,000.