Ocado warns profits to be lower due to extra staffing

Shares in online grocer Ocado have fallen more than 11% after it said profits would be lower than expected.

The firm, which mostly sells Waitrose goods, said it had been working to increase capacity at its main Hatfield depot.

However, the online retailer said its profit margins were hit by production issues and the need to bring on extra staff while this work took place.

The group said it expected gross sales of £643m for the year to 27 November.

"We are encouraged by the operational capacity improvements that we have made," said chief executive Tim Steiner.