Ocado boss Steiner ‘energised on future’ despite succession battle
Ocado boss Tim Steiner has insisted he is “as excited and energised” about the firm’s future following a battle over his succession which will see him depart in around 18 months.
The co-founder and chief executive of the FTSE 250 firm is expected to step back from his current role as soon as December 2027 and “transition into a founder role”.
The timeline for Steiner’s departure followed a boardroom plot, led by chair Adam Warby, to remove the company’s founder amid concerns over its cratering share price.
The pressure to ditch Steiner proved divisive among investors, with some calling for Warby to quit instead.
But co-founder of the firm, which offers online shopping and warehouse automation services, sought to draw a line under the boardroom fallout while announcing its half-year results on Thursday.
“We have the best technology in the industry, exceptional talent, and a tremendous opportunity ahead of us. I am as excited and energised about Ocado’s future as I have ever been,” he said.
Revenue at the firm’s warehouse tech arm slipped by eight per cent to £256m in the six months to April, excluding £354m in compensation from the closure of a string of its North American sites.
The group said it is speaking to “multiple” potential new partners for its grocery warehouses services in North America, Europe and Asia.
Ocado Retail, the group’s online shopping partnership with Marks & Spencer, took a 15 per cent boost in revenue to £1.8bn and expanded its market share to 13.7 per cent.
The service now attracts 10 per cent more active customers, whose average shopping basket is worth £126.55 – up two per cent from a year ago, the firm said.
The group’s retail arm delivered a £12m pre-tax profit in the six months to April, returning to the black following a £17m loss in the same period the year prior.
Duncan Ferris, an analyst at Freetrade, said Ocado’s retail business “just keeps delivering […] aided by M&S’ increasingly popular food range”.
But the company’s tech arm is proving to be a drag on growth, he said, adding: “The fact of the matter is that Ocado needs more tech contracts with retailers.
“Its automated grocery offering might appear unrivalled in its sophistication in the UK, but the business is still finding it a trickier sell than boxes of chocolate-covered custard creams.”
Ocado’s shares shed seven per cent to 165p on Thursday’s market open, widening recent losses which have seen the stock lose 90 per cent of its value in the last five years.