Ocado losses widen despite Morrisons tie-up

However, despite the sharp growth in sales, Ocado's revenues are below what was forecast what the company floated in 2010.

Numis, the company's broker, forecast in 2010 that Ocado would deliver sales of £1.15bn and pre-tax profits of £32m in this financial year.

Despite the wider losses, Tim Steiner, co-founder and chief executive, said the momentum in the industry towards online grocery shopping is "unstoppable".

He said: "Last year the food retail market in the UK was driven by consumers' increasing preference for shopping online.

"Today the momentum seems unstoppable and, as the market evolves, we are leading the way in delivering market-leading service, innovation, and technology to the benefit of our customers."

Retail analyst Nick Bubb said: "Given the 'unstoppable' momentum in online grocery shopping, it is a bit disconcerting that Ocado isn’t growing faster and is still losing money, notwithstanding its hefty £3bn market cap, but perhaps we are missing something."

Ocado and Morrisons agreed a £216m partnership deal last year that involves Ocado operating a new online grocery service for Morrisons using its CFC in Dordon, Warwickshire.

As part of the tie-up, the companies agreed to open more warehouses in the future.

Morrisons launched its service on January 10 and early sales are understood to have been ahead of expectations.

Shares in Ocado have soared by more than 200pc after the Morrisons deal was announced, with investors hopeful the company can strike more partnership deals.

Mr Steiner has referred to Ocado’s CFCs as the “world’s biggest grocery stores”.

At present, it has CFCs in Hatfield, Hertfordshire, and in Dordon, which is shared between Ocado’s own grocery service and Morrisons.

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