AO World reports strong first quarter

AO World, the online white goods retailer, has reported a strong start to the year, sending its shares up 9% to 130p.

The Bolton-based company, which floated at a market capitalisation of £1.2bn last year and has since been clobbered by a cynical City, said sales in the first quarter were up 6.5%, while orders were nearly 14% ahead in the three months to June 30.

The retailer, which also announced progress in its German growth plans,
said AO.com experienced revenue growth of 11.2% year-on-year  with such an increase “delivered through a period of particularly intense competitive activity in the market, compounded by the uncertainty surrounding the general election”.

Ahead of AO’s annual meeting in Bolton, chairman Richard Rose said: “As expected we have had a strong start to trading in July and we are encouraged by the indications of growth in housing transactions and disposable income in the broader market.

“We are mindful of recent volatility and intense competitive activity in the market, however, our customer loyalty continues to increase and we see this coming through in repeat business. The business is operating efficiently and we continue to expect the business model to deliver as expected for the full year.”

On Monday, AO World’s share price was 119.75p giving it a market value of £504m, less than half its £1.2bn peak in February last year.