AO reveals extent of stockpiling ahead of Brexit
Appliance retailer AO World has revealed that it has boosted its stock of fast moving goods by £15 million as part of its Brexit contingency planning.
In a trading update, the retailer also said that group revenue is expected to rise by 13% to £900 million in the year to 31 March 2019.
However, full year group adjusted EBITDA, excluding exceptional costs, is anticipated to be at the lower end of market expectations.
The retailer is facing exceptional costs of around £2.5 million as a result of a management team restructure following founder John Roberts’ return to the business and charges for a loss making contract it is unable to terminate in Germany.
AO is currently testing a rental proposition with customers and has also expanded its range to include more garden and DIY products.
Roberts said: “I am delighted to once again have the privilege to lead the business and excited by the scale of value creation that lies ahead of us for the benefit of all stakeholders. I look forward to updating more fully in early June on how we are accelerating our plans to grow while leveraging the infrastructure we have invested in.”
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