Ocado makes first ever profit after 15 years, but has no plans to pay dividend

Online grocer Ocado has finally turned a pre-tax profit after 15 years in business - but a dividend won’t be along for the “foreseeable future”.

Ocada made a £7.2 million pre-tax profit in the year to November 30 - improving on a £12.5 million loss previously.

Founder and chief executive Tim Steiner said: “It’s still not our focus. Our focus is on long term value creation for our shareholders.

“Had it been our focus we could have done it before, but we’re focused on what we are trying to build for the future.”

Sales jumped 15.1% to £972.4 million.

“We have absolutely no intention of paying a dividend in the foreseeable future, if you look at some of the largest most successful companies in the world, they don’t pay dividends - they’re constantly reinvesting their cash.”

Ocado invested £78.8 million last year.

Ocado launched supermarket Morrisons’ online business a year ago and is looking to roll out its technology to other retailers.

The shares - which floated at 180p in 2010 - added 12.65p or 3% to 428.15p.