*

Sees "mid-teens" tech EBITDA margin in 2023-24 FY

*

Sees cash flow improving by 150 million pounds

*

CEO says no reason for investors to be worried

*

Shares jump 18%

(Adds CEO comment, share price)

By James Davey

LONDON, July 16 (Reuters) -

Britain's Ocado ( OCDGF ) lifted its annual guidance on

Tuesday, citing an improvement in the profitability of its

warehouse technology business, reassuring investors and sending

its shares up by 18%.

The group runs an online grocer in Britain through a joint

venture with Marks & Spencer ( MAKSF ) and also sells its

cutting-edge warehouse technology to retailers around the world.

Its shares have slumped 55% this year, with the market

spooked by a slowdown in the rollout of robotic sites and

modules for its retail partners.

But shares jumped 18% to 402 pence in early deals on Tuesday

on its upgrade to margin and cash flow guidance and CEO Tim

Steiner told Reuters investors had no reason to worry.

"I'm not concerned in investors losing confidence

because they shouldn't be losing confidence. We've got a clear

plan and we're executing to that clear plan," Steiner said.

Citi analysts said the share price reaction was to be

expected given the upgrades to technology and cash expectations,

plus weakness in recent days.

Ocado ( OCDGF ) said last month its Canadian supermarket partner

Sobeys had paused the opening of a fourth robotic warehouse, or

customer fulfilment centre (CFC), as Ocado ( OCDGF ) calls them.

Ocado ( OCDGF ) has also seen Kroger ( KR ) in the United States slow

down its rollout of sites. Some analysts also think Ocado ( OCDGF ) will

need to raise significant additional capital.

Ocado ( OCDGF ) said it now expected its key technology solutions

division to achieve a "mid-teens" EBITDA margin in the full

2023-24 year, versus previous guidance of over 10%.

It also forecast underlying cash flow would improve by 150

million pounds, ahead of a previous expectation of 100 million

pounds, and said liquidity remains strong at 1.05 billion

pounds.

First-half underlying earnings, or adjusted EBITDA, Ocado's ( OCDGF )

preferred measure, was 71.2 million pounds, up from 16.6 million

pounds. Revenue rose 12.6% to 1.5 billion pounds.

($1 = 0.7719 pounds)