Business
Agreement re Ocado Smart Platform
Agreement re Ocado Smart Platform.
About this update from Ocado Group Plc
[{"type":"text","content":"\n \nRNS Number : 0852H Ocado Group PLC 05 June 2017 \n\n \nOcado Group plc\nThis announcement contains inside information\nAnnouncement of first international customer for the Ocado Smart Platform\nWe are pleased to announce that on 3rd June 2017 we signed an agreement with a regional European retailer to use Ocado Smart Platform (\"OSP\"). The retailer wishes to remain anonymous until it launches its online business in order to retain competitive advantage. \nOcado will provide this partner with our full software platform, know-how and support services required to create an efficient and intelligent online grocery business, with orders initially fulfilled from their manually operated centralised warehouse. \nThe agreement gives the partner the right to request in the future the installation of automated mechanical handling equipment in centralised warehouses, powered by OSP technology, on terms to be separately agreed but within given parameters.\nThe partner will pay an up-front fee to Ocado for access to OSP, together with ongoing fees that are based on the volume of products sold online. Ocado expects the arrangement to be earnings and cash neutral in the current and 2018 financial years, and increasingly accretive thereafter.\nTim Steiner, CEO of Ocado, said: \n\"We are delighted that our partner has decided to adopt OSP for its online operations. This is an exciting step in the evolution of our business and in the delivery of our strategy. \nThe benefits of our integrated solution are clear. As this particular retailer looks to develop its online offering the agreement we have signed provides the flexibility to expand its capacity efficiently in the future. We look forward to working closely with our new partner in the months and years ahead.\nOur discussions with other retailers across the globe are ongoing and we continue to expect to sign multiple deals in the medium term.\"\nContacts\n• David Hardiman-Evans, Head of IR & Corporate Finance, on 01707 228 000\n• Stephen Malthouse or Michelle Clarke, Tulchan Communications on 020 7353 4200\nNotes to editors\nAbout Ocado\nOcado is a UK based company admitted to trading on the London Stock Exchange (Ticker OCDO), and i...