Online grocer Ocado “will not be in profit until 2014” one of the advisers on the UK firm’s IPO has said.

An HSBC analyst said in research sent to potential investors ahead of its floatation that Ocado will continue running up losses until 2013, before making GBP25m (US$38m) of pre-tax profit in 2014 and GBP56m in 2015, the Daily Telegraph reported.

He has also questioned the mooted GBP1bn-plus valuation placed on the company by other advisers and said it is difficult to value the business. “We obtain very different results with our valuation methods we have used, ranging from GBP775m to GBP1.1bn,” the research said.

The research also said the retailer needs to invest a further GBP80m in its Hatfield warehouse if it is to run at full capacity and that its second warehouse will cost GBP210m.

Waitrose is expected to receive around GBP6.4m in its annual sourcing fee with Ocado, through which it has to buy a minimum of 80% of third party products via Waitrose.