AO fourth quarter trading beats expectations
Domestic appliance retailer AO World has reported that trading in the UK was better than expected in its fourth quarter.
In a pre-close trading statement covering the year to 31 March 2016, the retailer said its UK business performed strongly during the quarter with revenue and EBITDA ahead of expectations as it continued to gain market share.
As a result, AO World expects full year UK revenue growth to be circa 18.5% with revenue growth from AO.com to be around 27% and UK adjusted EBITDA to be circa £17 million. Expectations for the UK business in the next financial year remain unchanged.
Having started trading in the Netherlands on 1 March following a launch into Germany in 2014, the company said it expects revenue in Europe to be within the current range of expectations.
It added: “Our European adjusted EBITDA for the full year will be slightly better than expected due to our focus on driving efficiencies. We expect such focus to continue until we move in to our new regional distribution centre in Bergheim later in the year, when we will look to accelerate volume growth.”
