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STORY: Ocado shares jumped as much as 15% on Tuesday (July 16).

Investors were cheered after the food delivery firm lifted guidance for its key warehouse technology division.

Ocado runs an online supermarket in the UK through a joint venture with Marks & Spencer.

It also sells cutting-edge warehouse technology to retailers around the world.

Before Tuesday's update, shares had slumped by more than half this year.

The market was concerned by a slowdown in the rollout of robotic sites and modules for its retail partners.

CEO Tim Steiner said Ocado was talking to potential new partners and had "a strong pipeline of interest."

He added Ocado didn't need to raise additional capital, pointing to liquidity of more than $1.30 billion.

Ocado said it now expects its technology solutions division to achieve a "mid-teens" earnings margin before tax in the 2023-24 year - up from previous guidance of 10%.

It forecast underlying cash flow would improve by $194.4 million - again up on previous outlooks.

The firm's pretax loss narrowed to just under $200 million from $376 million.

Ocado also said it was on track to be profitable at the pretax level in four or five years.