Stockbroking services firm AJ Bell has said that while online retailer Ocado is right to toast its new business wins for its 'solutions' arm, its core retail operation remains a key revenue driver that should not be overlooked.
“Although Ocado would like to be seen as a technology company, its half year results paint a very different picture," said Russ Mould, investment director at AJ Bell. "It generated 11 times more revenue from selling groceries than supplying technology systems and services.
“Admittedly the business has done very well in the past year by signing up more international partnerships using its software, algorithms and robotics systems. But that’s all about the future. Today is about a company generating sales by delivering food and drink to UK consumers."