AO World acquires Jessops from Peter Jones
AO World has acquired specialist photography retailer Jessops from Dragons’ Den star Peter Jones.
Funded from existing cash resources, the move forms part of AO’s strategy of expanding into adjacent categories as it looks to increase its wallet share.
Subscribe to TRBAO said the acquisition has brought a trusted brand and specialist expertise in cameras and optical technology into its portfolio, while Jessops’ recommerce business, Camera Jungle, is complementary to its existing Music Magpie business.
AO said it expects Jessops to grow over the next 12 months as it uses AO’s scale, traffic and operational expertise to drive efficiencies.
Ahead of its AGM, AO also confirmed that its business has performed well in the six months to 30 September, with year-on-year group revenue expected to be up 5.5% and pre-tax profit up by over 20% to around £21.5 million.
However, AO’s full year profit expectations remain unchanged due to planned strategic investments and a more challenging comparative environment in the second half.
John Roberts, AO’s founder and chief executive, said: “We’ve carried our momentum into the new financial year with continued growth against a sluggish backdrop in the wider UK retail sector.
“Group revenue is up over 5%, profit is up more than 20% and cash generation remains strong. We have given over £29 million of discounts to our members in the period, which is further proof that our shared economics model is doing exactly what it’s built to do.”
He added: “It has been a busy first half of the year as we both buy and build more category capability, give more reasons to be an AO member and continue to build growth engines for the future.
“To that end I am delighted to welcome Jessops into the AO family and look forward to growing the existing business as well as integrating the category into the wider AO business.”
