Ocado, the online grocery retailer, has appointed BBC chairman Michael Grade as its first non-executive chairman.
The move has sparked speculation that the online business is preparing for a stock market floatation.
Jason Gissing, Ocado finance director and one of its three co-founders, said the decision was “just the next step in our journey”.
He added: “People will think we have appointed him because we are clearly lining up to bring Ocado to the market, but we are simply not doing that.”
Gissing said he did not expect Ocado to go to the stock market in 2007.
The latest accounts filed at Companies House for Ocado show that its losses widened 12 per cent to £45.5m in the year to last November, on sales of £151.7m, up 69 per cent.
The retailer last sought extra funds from its existing investors in March when it raised £60 million from shareholders. The fundraising valued the group at around £500m.
But Gissing said the company is still making losses because it continues to invest in expansion.
The retailer is investing £35-40 million a year in new technology and other equipment, which is bringing sales growth of 40-50 per cent.
Grade said: “I was particularly attracted by the Ocado team, who have built an amazing business from scratch in just six years. I was already a very satisfied customer. Ocado is the market leader in customer service in a fiercely competitive industry.”
