Ocado shares reach all-time high

Ocado has revealed its shares have risen to an all-time high following a grim performance after the firm floated last July.

The online grocer's shares soared 12% to close at 247.7p, double the firm's 123p low and above the initial 180p offer price, the Daily Mail reports.

Ocado revealed it garnered a pre-tax profit of £300,000 for its final quarter to 28 November, although the retailer saw losses for the full year.

The firm was founded by three former Goldman Sachs bankers in 2000. Fidelity's Tom Ewing, who has a combined stake of just over 1% with another Fidelity manager, joined former US Vice President Al Gore's Generation Investment Management among other investors in a £30m equity fundraising in September 2009, giving the group an enterprise value of £625m. The firm had hoped for a valuation of over £1bn in its planned IPO, after pricing its £200m share offer at between 200p and 275p

The online grocer's detractors have contested whether it would ever gain a profit and if it had the scale to do so.

Ocado saw pre-tax tax losses more than halve to £12.2m for the 52 weeks to 28 November, compared with the £26m loss reported in 2009.

The firm is now well-placed to make its first full-year profit this year, according to analysts.

Chief executive Tim Steiner told the Daily Mail the business will step up competition with industry giants by selling more groceries that are also cheaper.

Ocado sells around 21,500 products and expects consumers to shift to online shopping using mobile phones.