AO first half revenue climbs by 57%
AO World has said it expects its group revenue to rise by around 57% to £715 million in the first half of its financial year.
For the six-month period to 30 September, it is antcipating that UK and German revenue will increase by around 54% and 83% respectively.
The online electrical appliance retailer said its UK retail business benefited from a strong sales momentum both in its first and second quarter despite competitor businesses reopening their bricks-and-mortar stores following the Covid-19 lockdown.
It said its German business also performed well as more people in the country chose to shop online throughout the pandemic.
AO said increased costs incurred from operational challenges posed by Covid-19 have been offset by less competition in some marketing channels and additional delivery income.
AO founder and group chief executive John Roberts said: “The last six months of trading have been like no other during my two decades in the business. AO was in good shape coming into this financial year and the global, structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths. The progress that we’ve made in Germany gives us the platform and confidence to grow. We remain excited by the opportunities ahead and ambitious to realise them.”
Looking ahead, Roberts added: “Whilst we remain mindful of the uncertain economic climate caused by the pandemic and Brexit, we are on track with plans and well set for our biggest ever peak trading period in the UK and Germany.”
