British online grocer Ocado is closing in on its first technology deal with an overseas retailer, it has said, disappointing investors who had hoped for news of a firm transaction. Ocado shares, up about 30 per cent in the past three months, fell as much as 5.5 per cent in early trading.

“While Ocado remains convinced its first global deal will be signed in 2015, the shortage of anything to communicate today is set to reverse some of the company’s recent effervescence in terms of share price,” said Bryan Roberts of Kantar Retail.

Ocado signed its first third-party deal with British grocer Morrisons in 2013. In February, the firm reported a pretax profit for 2013-2014, the first in its 15-year history. It also said it aimed this year to sign its first technology deal overseas. Ocado shares, which have had a rollercoaster ride since they debuted at 180 pence apiece in 2010, were down 4.3 per cent in early trade yesterday, valuing the business at about £2.4 billion .

Ocado, founded by three former Goldman Sachs bankers in 2000, has divided analysts like few other stocks, with some viewing its home deliveries from giant distribution centres as the future of grocery shopping and others seeing it as a costly and complicated venture that will never make sustained profits.

The firm, whose range includes products supplied by upmarket grocer Waitrose, reported an 11.4 per cent rise in first-half core earnings and a slight acceleration in sales growth despite intense price competition with traditional grocers and deflationary pressures. – (Reuters)