MARKET REPORT: Ocado shares retreat as Amazon bid talk fades

Shares in Ocado fell after unconfirmed speculation linking it to a possible Amazon takeover faded.

The value of the FTSE 100 online grocer had risen by a third as several suitors, including the US giant, were reported to have drawn up offers.

But unconfirmed reports claimed Amazon denied the speculation, causing shares to fall 5 percent, or 28 pence, to 529.8 pence. Ocado was contacted for comment.

The company recently flirted with relegation from the FTSE 100 after annual losses of £500m, saying customers were adding fewer items to online shopping baskets.

Michael Hewson, chief market analyst at CMC Markets, said: “Shares rose sharply in anticipation of something coming out of the woodwork.

Ocado has several deals with other major retailers such as Krogers in the US, Carrefour in France and Sobeys in Canada, while Marks & Spencer could also play a role given its 50 percent stake in Ocado Retail.

How would a deal go with one of these retailers who have partnership agreements with Ocado?

‘And there is also the prospect that the Competition and Markets Authority will have something to say about a possible deal.’

The FTSE 100 rose 0.5 percent, or 39.03 points, to 7500.49 and the FTSE 250 rose 2 percent, or 357.97 points, to 18,412.81.

Accounting software company Sage rose to the top of the blue-chip index following a vote of confidence from JP Morgan, which upgraded its rating for the group, which serves small and medium-sized businesses, from “overweight” from “neutral” and its target price from 1100p to 860p .

It said Sage is “uniquely positioned” to be at the forefront of software automation for the next decade and can deliver organic sales growth of at least 10 percent through 2025. The company gained 5.1 percent, or 44.6p to 918p.

There was also good news for Bridgepoint after Citi raised its price target on the private equity group that owns Burger King in the UK from 280 pence to 285 pence. Shares rose 6 percent, or 11.7 pence, to 208.4 pence.

Stock watch – AMTE Power

AMTE Power suffered another setback after the Scottish battery cell maker warned it could put itself up for sale.

The group, whose lithium-ion and sodium-ion cells are used in electric vehicles and for energy storage, said shareholders could be wiped out if it fails to raise new funds within three weeks.

Amte had said it was running out of money and added that talks with potential investors continued.

It is now considering “all credible options.” It fell 20.2 percent, or 1.14 pence, to 4.5 pence.

Utility investors held their nerve over fears for the future of Thames Water.

Severn Trent was up 0.1 percent, or 3p, to 2687p, Pennon Group was up 0.5 percent, or 3.5p, to 740.5p, and United Utilities was up 0.2 percent, or 1.5p, to 1004, 5p.

But ProCook hit a record low after the cookware retailer took a beating from consumers tightening their belts.

The Gloucester-based family business said sales fell 9.9 per cent to £62.3m in the year to April 2. It turned to a loss of £6.5 million, after a profit of £94,000 the previous year amid lower sales, rising costs and investment in the business.

Business has remained difficult since the start of the new financial year, with sales of £10.7 million between April 3 and June 26, down 6.7 per cent from a year earlier, due to high inflation, rising interest rates, warm weather and weaker trade in the household goods market.

Chief executive Daniel O’Neill, who founded the company with his mother Peggy in 1996, said, “This year’s economic backdrop was one of the toughest I’ve experienced in my career.”

He will also step down as boss “at an appropriate time.” Shares, which floated at 145 pence in 2021, plummeted 14.3 percent or 3.75 pence to 22.5 pence.

Elsewhere, Pod Point turned a profit after it signed a two-year deal to install electric vehicle charging points for Britain’s largest homebuilder, Barratt Developments.

The group, which develops charging stations for Tesco, Lidl and Center Parcs, among others, has installed home charging infrastructure in more than 3,000 Barratt properties.

Pod Point fell 1.3 percent, or 0.9p, to 67.1p, while Barratt added 1 percent, or 4.1p, to 419.5p.