The fire at Ocado’s robotic warehouse in Andover, Hampshire, earlier this year. Photograph: @lottielouises/PA

Ocado’s warehouse fire may cost more than £100m

Aminy Andawi
Business & Industry
Construction & Infrastructure
Jul 10, 2019
2183
The online grosser, Ocado, has said that the fire at its warehouse may cost more than £100m. The fire happened earlier this month in Andover, Hampshire, while Ocado also fell to a loss of £143m on sales. The fire burnt down Ocado’s hi-tech warehouse where it provided about a tenth of the company’s delivery capacity.

The retail sales growth rate is going down by 2% from previously 9.7%.
Last year the company made profit of £34.3m while this year the company made an underlying profit of £18.1m. Oscado stated that the Andover fire case would made a £15m hole in annual profits, however, Duncan Tatton-Brown, Oscado’s finance director said that they expected the insurer to fully compensate the company.

To maintain their service for the customers, Ocado has signed a deal with Morrisons, one of their clients, which allows the delivery firm to take back 30% of the space for two years as Ocado’s new center in South-east London. The new warehouse is also under construction in Purfleet, Essex.

Before the fire incident happened, Ocado plans for expansion as it prepares to work on a new relationship with Marks &Spencer, which have paid £750m for 50% of Oscado’s retail. Marks & Spencer replaces Waitrose for an existing deal in the next autumn.

Source: https://www.independent.co.uk/news/business/news/ocado-losses-first-half-year-warehouse-fire-tax-loss-latest-a8996806.html

Business , International