AO delivers the goods in strong first half
ONLINE retaier AO World doubled first half earnings as it posted its first interim results since its £1bn+ IPO earlier this year.
The Bolton-based electrical appliances specialist recorded an adjusted EBITDA of £7.3m for the six months ending September, up 115% on the first half of 2013.
Total revenues increased by 25.1% to £217.1m during the period, while adjusted operating profits increased by 134%to £5.5m. AO’s German launch, its first entry into an overseas market, resulted in set up costs of £3.3m.
Founder and chief executive John Roberts said: “The UK growth was delivered at the same time as management resource was also focused on launching our proposition in Germany, which we achieved in October some six months earlier than promised.
“This launch has given us confidence in our ability to replicate our model overseas. While this accelerated investment has brought forward our associated set-up costs for the period, our focus is on the long-term as we proceed with our strategy to deliver a market-leading proposition in new categories and countries.”
AO.com launched its German business on October 1 with its first customer deliveries on October14.
Mr Roberts said the company was “delighted” with initial sales growth in Germany and added trading for the second half of the financial year had started well.
It has also launched a consumer finance offer in the UK to allow it to reach more customers and it is broadening its product range, which included selling TVs for the first time in May.
AO said its is “well prepared” for peak trading in the run up to Christmas, adding that its delivery capability and delivery options remain “market-leading”.
