Ocado shares fall nearly 15% after half-year pre-tax profit drops to £17m

Ocado shares fell nearly 15% to their lowest level in more than a decade after the company posted pre-tax profits of £17m for the six months to 31 May, down from £607m a year earlier. The co-founder and chief executive said he has no intention of acting as a "puppet master" and will step down as chief executive in 2028 while remaining available in a founder role through 2029.

Profit decline and market reaction The company said existing clients are showing strong growth and it expects to sign new clients in the United States within the next six to 12 months. It also plans to open robot-run distribution centres in South Korea, Japan, and Phoenix, Arizona, this year.

The trading statement made no reference to reported boardroom discussions about the chief executive's position. The chair, who took the role in 2024, did not comment.

Leadership transition plans The chief executive said any successor would be comfortable with his continued involvement in client relationships. He added that he remains fully committed to leading the company through the next phase and that the business is on a good path.

The company expects to generate positive cash flow by its November year-end. New distribution facilities in the United Kingdom are likely to be required from 2028 as its retail joint venture with Marks & Spencer continues to grow, with sales rising 15% to £1.76bn in the half year.