AO World to expand in new markets
AO World has said it expects to be operating in five countries within the next five years, including its existing markets of the UK and Germany.
The company said investments made this year will support this ambition as it looks to more double the size of the business
The news comes as AO reported that group revenue increased by 62% to £1.66 billion in the year to 31 March with revenue in the UK and Germany climbing by 59% and 81% respectively. Pre-tax profit rose to £20.2 million from £600,000 in the prior year.
AO founder and chief executive, John Roberts said : “It’s been a step change year for AO in which we’ve achieved significant strategic, operational and financial progress. The early and bold investments we made in capacity, infrastructure and people returned increased revenues by 62%, and grew adjusted EBITDA by 191% across the group. Most importantly, we rose to the challenge for the people who matter most, our customers.”
During the year, AO created over 1,200 new staff roles across the business and attracted over two million new customers.
Roberts added: “We firmly believe that once people experience a better way to buy electricals, they are unlikely to return to old ways of shopping. Our vertically integrated business model offers substantial operational leverage which means all incremental growth feeds our flywheel, generating cash to invest back into our business for customers.”
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