AO World shares surge after strong festive sales growth

Electrical appliances seller AO World saw shares jump on Monday after saying it was confident of hitting full-year expectations following impressive revenue growth in the third quarter and strong demand seen on Black Friday.

AO website revenue soared 38% in the three months to 31 December 2014, with total revenue including third-party retail and logistics up 26%. Figures exclude Germany, where AO World launched operations in October.

The online retailer said it “managed very well” over the peak Christmas trading period, maintaining website response times and service levels amid a “large spike in volume”, especially on Black Friday.

Sales of audio-visual products in particular, which were launched in May 2014, “built well” during the period ahead of Christmas.

Meanwhile, the company is performing ahead of plan in Germany and sales are “building well”, it said.

“Our brand recognition continues to grow and over this key peak period, including the unprecedented demand seen on Black Friday, we continued to deliver for our customers,” said chief executive John Roberts.

“Our unbeatable prices, huge range and amazing service mean our customer satisfaction levels have remained exceptional,” he said.

The stock had surged 7.7% to 266p by 08:32 on Monday.