Ocado’s co-founder Jason Gissing has said that he is to step down from the company at the AGM in May. The announcement follows an annual trading update in which the company saw widening losses.

In the year ended Decmber 1st 2013, the company improved its sales growth and signed a transformational agreement with Morrisons to increase its market reach, although annual losses were 12.5 million pounds before tax compared with a £0.6 million loss the previous year.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 32.8% to £45.8 million, ahead of analysts' average forecast of £43 million, on gross retail sales up 15.2% to £843 million.

Active customers increased to 385,000 (2012: 355,000) and growth in frequent shoppers increased over twice as quickly as growth in active customers due to increased focus on new customer acquisition rather than low value customer retention.

Tim Steiner, chief executive officer of Ocado, 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.

 "2013 was an extremely busy year for us with significant progress in growing both our customer numbers and average spend thanks to a wider range of products, even better prices, and the fact that we are now even easier to shop. We have continued to grow our general merchandise business, adding depth to the range in certain non-food categories and launching Fetch, our specialist online pet store.

"The successful opening of our new CFC during the year provides us with the capacity to continue to grow and we are well placed to take advantage of significant change in our industry.

"During the year, we also announced a long-term agreement with our first strategic client, Morrisons, to provide them with IP and operating services to launch their online grocery business. The efforts of our teams, and the strength of our technology platform, have allowed us to deliver this project successfully in a very short timeframe. This development reflects the increasing demand for online grocery shopping in the UK and internationally, and a validation of the unique technology, IP and operating model pioneered by Ocado.

“We are confident that we are well positioned to benefit from future strategic developments as online grocery shopping increases in popularity."

On the retirement of Jason Gissing, Tim Steiner added: "I have worked with Jason for 20 years. Jason has led the development of our brand, and helped shape the culture inside Ocado and the way we are perceived by our customers. After our IPO he focused almost exclusively on marketing and cultural matters before taking on the role of commercial director.

“He has four young children and wants to spend more time with them. He also has a passion for various environmental and social concerns, and has chosen to focus on these important causes full-time in the future.

“He has been an invaluable partner and friend to me and I will miss his daily humour and insights. We all wish him the very best."