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Ocado shares tumble over Olympic concerns

Share prices at online grocer Ocado have fallen by 18%, amid fears that the Olympics could hit sales.

Ocado, who makes half of all sales within the M25 indicated that the potentially damaging impact of the Olympic Games made it hard to predict fourth quarter figures.

During the 24 weeks to 13 May profits were £0.2 million, unchanged from 2011, but revenues rose by 11.4% to £308 million.

Commenting on the figures, chief executive Tim Steiner said: “There is uncertainty as to the effect of the forthcoming Olympic games.”

Despite the potentially damaging effect of the Olympics, Ocado anticipated that sales growth would increase in the second half of the year. Customer base has growth to 337,000, while the average order size has fallen slightly to £113.10.

Share prices fell by 17.8% to 89p after the results were released. This is still higher than the 52p low witnessed in December 2011, with have risen by 82% over the past six months

This was posted in Bdaily's Members' News section by Ruth Mitchell .