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July 12, 2010

UK: Ocado slams claims of funding fears

Ocado has hit out against claims that the UK online grocery retailer needs float to stay in business.

Ocado has hit out against claims that the UK online grocery retailer needs float to stay in business.

A report in the UK this weekend said the future of Ocado was in doubt after the disclosure that the company may not be a going concern without the sale of shares and a new GBP100m (US$150.8m) loan that depends on the successful float.

However, an Ocado spokesperson told just-food it was “completely misleading” to suggest that there was a funding issue at the company.

“The going concern qualification in our accounts is a technical issue which has been there consistently for the last nine years because of the rate of our growth over that period,” the spokesperson said.

“The company doesn’t need to raise GBP200m, but it is choosing to do so to grow the business and build a second CFC. It is ridiculous to suggest that we would not be able to continue in business if we did not do the IPO or if we did not raise the GBP200m.”

 

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