Ocado shares down 8.1% as fire damage worsens at UK hub

Writer, Stock Market Wire
Wednesday, February 6, 2019 - 13:23

Shares in online grocery retailer Ocado remained under pressure after it confirmed a fire at its Andover distribution centre in southern England had worsened overnight and would hurt sales volumes.

'Unfortunately the fire which started yesterday morning in a corner of the ambient grid was not contained as we believed, and last night expanded,' the company said.

'Whilst we are informed by the Fire Brigade that it is now under control, during the night part of the roof collapsed and there has been substantial damage to the majority of the building and its contents.'

Ocado said it would update the market when it had time to address the damage and return the customer fulfilment centre to operation.

'As Andover was providing approximately 10% of our current capacity, as a result of this incident there will be a constraint on our ability to meet our growing customer demand and there will be a reduction in sales growth until we can increase capacity elsewhere,' it said.

'Ocado has comprehensive insurance for the property, stock and equipment on site, and for business interruption losses.'

At 1:23pm: (LON:OCDO) Ocado Group Plc share price was -80.8p at 953.2p


Related content

Britain's biggest brands uncovered

Author: 

Continuing our look at the FTSE 350, this week we consider consumer stocks and pick five of our favourites. Three are
from the FTSE...

Thu, 22/08/2019 - 00:00


Broker Forecast - JP Morgan Cazenove issues a broker note on Ocado Group Plc

JP Morgan Cazenove today reaffirms its neutral investment rating on Ocado Group Plc (LON:OCDO) and raised its price target to 1073p (from 1070p).

Broker Forecasts...

Mon, 19/08/2019 - 09:40


Ocado completes £750m delivery business stake sale to Marks & Spencer

Online grocery retailer Ocado said it had completed the planned £750m sale of its deliver business to Marks & Spencer, first announced in February.

The...

Mon, 05/08/2019 - 07:08


What are adjusted earnings and why do companies use them?

Author: 

When companies report their financial figures, often the final figure they want you to see is not the one that simply represents all of their...

Thu, 01/08/2019 - 00:00


Centrica dividend cuts begs the question of who will be next (and a checklist to test how safe forecast pay-outs really are)

As yet another fat dividend yield that looked too good to be true proves to be just that, with Centrica’s decision to slash its...

Tue, 30/07/2019 - 14:03