Shares in Ocado were up on the FTSE 250 in morning trading after the food delivery company reported a rise in revenue and a fall in losses in the full year ended 28 November 2010.

Net revenue increased 28 per cent to £515.7 million, while losses before tax dropped 52 per cent to £12.2 million. The loss included the £3.5 million one off IPO costs.

Ocado said that its average orders per week had increased 31 per cent in the year to 92,916 and added that it had signed a ten year contract with Waitrose.

Tim Steiner, Chief Executive Officer of Ocado, said, "This was a landmark year for Ocado with gross sales up 29% for the year; we have delivered on the targets set out at the flotation. We have continued our focus on improving the customer offer, which has led to a record number of customers and sales with the achievement of profitability in the final quarter. Ocado's growth continues to outpace the market."

By 11:15 shares in Ocado were up 8.35 per cent on the FTSE 250 to 236.20.