AO reports strong year for sales


AO reports strong year for sales

Online electricals specialist AO World grew its revenues to £902.5 million, an increase of more than 13 per cent for the year to the end of March 2019.  UK sales had risen by 10.1 per cent to £749.3 million. In Europe, revenues had grown by 32.3 per cent on a constant currency basis. This resulted in adjusted EBITDA losses of £400,000, falling from the £3.4 million losses in the prior year.

CEO & founder John Roberts commented: “We’re delivered double-digit revenue growth in the UK and achieved over 30 per cent in Europe and adjusted EBITDA in the UK has improved by over 20 per cent. The UK result was achieved against an ongoing tough trading environment and includes three months contribution from Mobile Phones Direct which we acquired in December 2018 and its integration continues to go to plan.

“Adjusted EBITDA losses in Europe have increased slightly against the prior year with progress hampered somewhat by driver challenges in Germany and a lack of real improvement in product margin and customer acquisition costs. We are working to address these issues. We’ve also made changes to the management of our international operations and are ensuring we utilise all the influence, intelligence and capability within AO.”

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