Online grocer Ocado has reported an 18% rise in sales for the 12 weeks to February 23rd, paving the way for its first annual profit.

In a statement, CEO Tim Steiner said: "We are pleased with the continued growth in our business. We remain committed to improving the quality of the offer to customers, which we believe will support further growth.

"Having launched on January 10th, we are pleased with the operational progress of Morrisons.com, with the service expanded to new geographic catchments in February.

"While we are encouraged by our current trading, the retail environment remains both challenging and competitive, and we expect to continue growing in line with, or slightly ahead of, the market."