Ocado - comment
Strong results and increased guidance from Ocado Retail are a mild boost for Ocado Group, and the relationship with M&S has warmed up recently, which is another positive. We see M&S buying out Ocado from this JV (leaving the £33m annual rental stream for the Hatfield site) and improving results at the JV, boosting the chances of a deal. The first step will likely be for M&S to take operational control and Ocado Retail to be deconsolidated. The sooner Ocado can be viewed as a logistics platform rather than a grocer, the better.