Ocado plans to raise £350m for expansion & software development

Online grocery delivery group, Ocado is looking to raise more than £350m to expand capacity at its online grocery business and fund software development.

The company stated it would raise a minimum of £200m through an offering of senior secured notes (debt that takes priority over other unsecured or otherwise more 'junior' debt owed by the issuer).

Additionally, it plans to secure around £150m through the amendment and extension of its revolving credit facility.

Ocado also published its results for the 22 weeks to April 30, showing a strong increase in sales. Gross retail sales rose by almost a quarter to £600m, EBITDA increased 20.5% to £37.6m, and pretax profit rose 45.7% to £6.7m.

The positive figures did, however, cover a 22-week period compared with 20 weeks in the previous year.