Ocado growth is cramped by lack of space

Holidays and a lack of warehouse space hit sales at Ocado just lately, but the online supermarket is still growing apace.

It said today that sales growth in the second quarter was slightly slower than in the first, at 21% compared with nearly 25%.

Ocado blamed that on "capacity constraints" and the run of bank holidays.

It has leased a 100,000 square feet warehouse, which is close to its main distribution centre in Hatfield, Hertfordshire, from which to develop its non-food business.

Ocado's shares slipped by 17.7p to 215.3p today, up from the 180p at which they joined the stock market in July in what was a controversial and at times awkward flotation.

A statement ahead of today's annual meeting said that the company "continues to drive profitable growth".