Ocado blow as FD departs

The bears have come out again for online grocer Ocado, as its shares slipped after the news that its finance director Andrew Bracey is to step down.

“We cannot see how such a resignation can be considered anything but bad news for Ocado,” said Shore Capital analyst Clive Black. His view mirrors that of others.

After a pre-Christmas profit warning and doubts over its ability to sustain a pre-tax profit, the departure of its finance director does not bode well for the business.

In the statement to the stock market on Monday, Bracey stood firm on his belief that Ocado is a “business with great prospects and an exciting growth trajectory”.

Why then, some have asked, is he giving all that up? “That Mr Bracey has decided to leave Ocado speaks volumes,” Black added, ominously.

Bracey is clearly ambitious, and his move to recruitment firm Michael Page could potentially offer him a good shot at a chief executive role at a company with a larger turnover.

But, regardless of Bracey’s career aspirations, his move reflects badly on Ocado. He played a pivotal role in its float, and his departure casts doubts on his confidence in the business, no matter which way you look at it.

HMV strikes a chord with banks

A rare bit of good news for HMV sent its shares rising last week, as the beleaguered retailer secured breathing space from its banks. They have reacted warmly to its new supplier relationships with record label powerhouses including Universal. HMV boss Simon Fox gave no extra details on the supplier terms struck, but he sounded like a weight had lifted when speaking with him last week.

He did, however, rightly sound a note of caution, saying the banks’ move “doesn’t change the underlying issues in the market”. But with the wrangling with the banks set to one side, HMV can now focus more of its efforts on retailing, which will be music to shareholders’ ears.