OCADO has revealed the financial impact of the fire that tore through its Andover warehouse in February.
The online retailer published its half year results on Tuesday. The report showed that the destruction caused by the blaze cost the company £110.3million, although £11.8million was recovered through insurance to bring to net cost to £98.5million.
For the 26 weeks to June 2, a loss before tax of £142.8 million was also reported – a significant increase on the £13.6 million loss posted last year. Meanwhile, revenues were up 9.7% to £803.2m, although this would have been around 11.7% without the impact of the fire.
The blaze broke out at the Ocado site on Walworth Business Park on February 5. More than 200 firefighters tackled the major incident for four days, while nearby homes were evacuated.
Ocado said an investigation by Hampshire Fire and Rescue Service and its insurers determined the incident was triggered by an electrical fault in a battery charging unit which caused a plastic lid on the top of a robot to catch alight.
The company acknowledged that the fire was one of the reasons behind the dip in profitability. However, bosses remain confident in its growth prospects.
Despite the setbacks, the company still expects retail revenue growth of between 10 and 15 per cent in the second half of the year.
It comes as Ocado shifts its focus after the announcement of a joint venture with Marks & Spencer. The deal will replace an existing partnership between Ocado and Waitrose next year.
The group is also on the hunt for more deals to provide technology services to retailers – a growing source of income. Fees invoiced from international partners almost doubled in the first half to £46.7 million.
Chief executive Tim Steiner said: “We have never had as many opportunities to grow as we do today.
“As we look to successfully scale our business and deliver outstanding execution to our partners, our challenge will be to select and prioritise the most attractive of these opportunities.”
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