Shares in AO World fall after chairman sells

SHARES in online white goods and television retailer AO World have fallen 6% on news that its chairman has sold nearly 90% of his shareholding, netting him £10m.

Richard Rose offloaded 5.6 million shares in the Bolton company representing 89% of his stake at 180p a share, a discount on Friday’s closing price of 191.6p.

His sell off follows a shock profit warning from AO World in February which sent the shares crashing by as much as 47 per cent.

The sale, carried out after markets closed on Friday, sent shares down 6%  to 180p.

John Roberts, the founder and chief executive of AO World, sought to reassure investors, saying the sale followed the expiry of the post-IPO “lock-up” period and would help “further increase liquidity and the number of shares in public hands”.

“Richard remains committed to the company, both as a shareholder and as its chairman,” Mr Roberts added.

Mr Rose, who is also chairman of Booker, the cash and carry firm, joined the board of AO World in 2008. Prior to this disposal he held 1.3% of the company’s stock.

The dealing could unnerve some investor already reeling from the company’s shock profit warning three weeks ago that annual profits would be behind thes expectations and weaker in its forthcoming financial year after sales slowed in the final quarter.

The February warning sent shares tumbling by more than 40% at one stage.