Britain's AO World flags strong start to year, details expansion plans
Reuters
Published Jul 01, 2021 02:46AM ET
Updated Jul 01, 2021 03:30AM ET
(Reuters) -Online electricals retailer AO World signalled a robust start to the new financial year on Thursday after almost tripling annual profit on strong demand for home appliances and office products due to the COVID-19 pandemic.
Shares of the company more than quadrupled in value in 2020 as it benefited from Britons working from home during the global health crisis. Investor focus is now on its expansion plans as AO World gears up for the new normal https://www.reuters.com/world/the-great-reboot.
In the year to March 31 its adjusted core profit rose to 64 million pounds ($88.4 million) from 22 million pounds a year before, it said, while confirming that group sales jumped 62%.
The British company, which sells laptops, washing machines, mobile phones and printers, said on Thursday it had started the new financial year "well", and remains "prudently optimistic" that it can deliver double-digit growth this year.
It said it hopes to more than double in size in the next five years and to operate in five countries, including its existing markets of Britain and Germany.
"We firmly believe that once people experience a better way to buy electricals, they are unlikely to return to old ways of shopping," said founder and Chief Executive John Roberts.
With the pandemic forcing people cooped up at home to pursue home entertainment and gaming to keep themselves busy, demand for technology has soared. A shift to a mix of office and home work will also keep gadget demand steady, analysts have said.
The London-listed company intends to spend more on marketing to tap this demand, and has set aside 30 million pounds for use this year, with another 30 million pounds earmarked to upgrade its support systems, it said.
Rival Dixons Carphone (LON:DC) also said its annual profit also jumped by a third and reported strong current trading on Wednesday.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.