Ocado’s £578M fund raise may not be enough to save the business

The online supermarket and retail technology group is building centres in countries including the US, Canada, France and Spain.

It says it is on the path to building a business with profits of £750million plus.

However, Clive Black, head of research at Shore Capital, cast doubt on Ocado’s claim that it will not need a cash injection in the medium term.

He said: “We do not see this as a fund raise to deliver growth from a position of strength as opposed to a business that is burning cash and needs access to equity capital and liquid resources.”