AO World's full year losses widen but revenue grows

Online electrical retailer AO World reported on Wednesday a 25.7% increase in full year revenue to £599.2, driven by growth in the UK business.

However, as previously guided, the group posted an operating loss of £10.6m, compared to £2.2m the previous year, reflecting investment and trading losses incurred in Germany and start-up costs in other European territories of £2.3m.

The pre-tax loss was £6.7m following a £2.9m loss in the same period the prior year. Its loss per share also widened to 1.44p from 0.60p.

The UK business achieved earnings growth as investment in marketing helped improve brand awareness. The Europe business, however, suffered a loss as it incurred start-up costs.

“While we are mindful of the recent softening of UK consumer confidence and the recent reduction in property transactions, and in Europe we are in still in a start-up phase, the board remains confident in the long-term prospects of the group,” the company said in a statement.

The company also announced the appointment of Geoff Cooper as chairman, to succeed Richard Rose, who will step down in July.

Shares fell 1.86% to 163.99p at 0807 BST.