Revenue up as AO World reveals Brexit preparations
AO World has reported a jump in revenues and revealed its Brexit contingency plan.
The Bolton-based online electrical retailer said group revenue for the 12 months to March 31st was up 13 per cent to £900 million, with UK revenue climbing 10 per cent to £748m.
As part of its contingency planning for Brexit, AO said it had increased stock on fast-moving products by around £15m, a move which has affected its cash position.
The listed firm is facing an extra £2.5m in costs from a loss-making contract in Germany and costs associated with a recent management reshuffle.
John Roberts, AO’s founder and CEO, was re-appointed to the role in January. Commenting on the updates, Roberts said that the company has had a ‘mindset shift’.
“We are setting about realising our opportunities with pace and energy,” he said.
He also referred to an upcoming launch of AO Mobile following the acquisition of Mobile Phones Direct in November of last year.
“We are accelerating AO Mobile to launch later this year in readiness for peak trading,” he said.
The company is also expected to launch a rental product which Roberts called "genuinely disruptive". In a tweet, he said the company is a trialling a "£2-a-week washing machine".
If you missed it over the weekend, proud to say that @ao is trialling a £2-a-week washing machine. Disrupting the market the AO Way, making essential goods cheap & accessible for Generation Rent and those stuck in the high-cost credit cycle. Very excited about this!— John Roberts (@johnrobertsAO) April 2, 2019
“I am delighted to once again have the privilege to lead the business and excited by the scale of value creation that lies ahead of us for the benefit of all stakeholders,” he said.
Roberts said that more announcements would be made in June about the company’s continued growth plans.