Ocado admirers deliver a near £10bn valuation following its supply agreement with M&S
- M&S agreed in February to replace Waitrose as its main delivery partner in 2020
- The company’s share price closed at a peak of £14.35 on Wednesday
- The shares settled back to £13.96 on Friday evening
Online delivery success story Ocado came within a whisker of reaching a milestone £10billion valuation last week after investors snapped up shares in the weeks following its supply agreement with Marks & Spencer.
The company’s share price closed at a peak of £14.35 on Wednesday, its highest ever, which left the business exceeding a £9.9billion value. The shares settled back to £13.96 on Friday evening.
M&S agreed in February to replace Waitrose as its main delivery partner next year – as first revealed by The Mail on Sunday.
Online delivery firm Ocado came within a whisker of reaching a milestone £10billion valuation
Ocado’s value now exceeds the combined value of M&S, at £4.5billion, and rival grocer giant Sainsbury’s, worth £5.2billion.
Ocado’s revenues of £1.6billion are still dwarfed by the pair which bring in sales of £10.7billion and £28.5billion respectively.
But the value of Ocado is based on the hope that it can continue to strike deals to deliver food for other retailers after the warm reception investors gave to not only the M&S deal but also the contract it won last year to supply US supermarket Kroger with its warehouse technology.
But late last week, analysts at HSBC cautioned that making healthy profits out of food delivery will continue to be difficult.