Borrowings8 Nov 2022 20:19
Pursestrings, you’ve not answered as to whether Ocado’s borrowings are at variable rate, and so attract higher interest charges as you suggest, or at fixed rates. I’ve taken a look at the 2021 Annual Report and the HY statements to confirm what I thought - their borrowings are at fixed rates. This can readily be seen in Note 4.8 on page 281 of the 2021 AR, borrowings at variable rate of £NIL.
Ocado had £1.3bn of fixed rate borrowings, £522m of convertible bonds at 0.875% coupon redeemable Dec 2025, £283m at 0.75% coupon redeemable Jan 2027 and £494m in senior unsecured notes at 3.875% coupon. All facts, not opinion.
Management have stated their view that no additional group financing is expected as the business becomes cashflow positive.
Respectfully, is your opinion of a “placement being around the corner” credible when you are so clearly mistaken about the company’s financing?