AO World revenues up 40% as it prepares for European expansion
Online domestic appliance retailer AO World has reported that revenues grew by 40% to Â£384.9 million in the year to 31 March 2014 as it prepares to expand in Europe.
Having completed the re-branding of its main website to ao.com in August 2013, the company increased its online revenue by 45.4% to £287.1 million in the year.
AO, which listed on the Stock Exchange in March 2014, said adjusted EBITDA climbed 10.9% to £11.2 million. However, the company has reported an operating loss of £7.2 million compared to a profit of £8.4 million in the previous year after taking into account £15.4 million of exceptional costs relating to its initial public offering.
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During the year, AO enhanced its major domestic appliances proposition by introducing a same day delivery option and an extension of the cut-off time for next day delivery from 10 pm to midnight. It also extended services for cooking appliances to include gas and electrical installation.
The company said it had made a good start to the new financial year and was trading in line with expectations. It added that its European expansion strategy was “proceeding well”.
AO chief executive John Roberts said: “I am delighted by the achievements the AO team has delivered over the course of the last year and the progress we have made in positioning our business structurally and financially to realise the very exciting opportunity we have ahead of us.
“Our UK business continues to build strongly aided by a successful rebranding, introduction of same day delivery and entering the small domestic appliance and television markets.
“We are making great strides in preparing for our launch into Germany as the first step to becoming a leading European online electrical retailer.”
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