THE boom in internet shopping failed to stop online grocer Ocado slipping back into the red despite growth in new customer numbers.

Ocado, which delivers Waitrose and its own products to much of the UK, made a bottom-line loss of £2.4m in the year to November 27 as it continued to struggle with capacity constraints at its Hatfield distribution centre.

Although the losses were an 80% reduction on the previous year, it failed to repeat its first-half performance when it toasted its first bottom- line surplus.

Revenues increased 16% to £598.3m as customer numbers grew, but shoppers ordered an average of one item less per week.

Its results were broadly in line with the City’s expectations, but shares rose 4% after Ocado cheered the market by saying that its growth, which was 10% in the final quarter, will gather pace over the coming year as it makes progress with its expansion work at Hatfield.