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History repeating..

I am old enough to remember another high-flying seller of appliances -

John Bloom

AO World listed 50 years after shares in John Bloom's appliance company collapsed into liquidation.

No connection, and no direct comparison. Just an interesting memory, of someone who revolutionised the marketing of appliances.

Black Friday (tomorrow)

"Online retailer AO World is offering up to £100 off washing machines, with prices starting from £179; more than 25 per cent off American fridge freezers, starting from £399, and up to 70 per cent off vacuum cleaners (from £49) and small appliances, including microwaves from £59." (city-am)


That should briefly help turnover - and increase losses.

Trading Statement

AO World plc ("the Company" or "AO"), the UK's leading online retailer of major domestic appliances, today gives a pre-close trading update for its full financial year; the twelve months to 31 March 2016.

Our UK business performed strongly during the fourth quarter with revenue and EBITDA ahead of our expectations as we continued to gain market share. As a result, we expect full year UK revenue growth to be c.18.5% with revenue growth from AO.com to be c. 27% and UK adjusted EBITDA to be c. £17m. Expectations for the UK business in the next financial year remain unchanged.

In Europe we started trading in the Netherlands on 1st March, leveraging our German infrastructure. We expect revenue in our European segment to be within the current range of expectations. Our European adjusted EBITDA for the full year will be slightly better than expected due to our focus on driving efficiencies. We expect such focus to continue until we move in to our new regional distribution centre in Bergheim later in the year, when we will look to accelerate volume growth.

Our next update to the market will be our preliminary statement on 8 June 2016.

Numis Buy 180.45 250.00 250.00 Retains

Jefferies International Buy 180.45 192.00 192.00 Reiterates

AO World rocks to profits beat

So losses at AO widen yet again.

I have my doubts that you can make a profit in electricals with an internet only operation.

For all the internets popularity profits often come from physical stores where despite higher costs you have more opportunity to sell customers more and in particular profitable add ons it also gives you a valuable edge as people can actually see/use before they buy.Without this you are really just competing on price and there are plenty on the net happy to sell at virtually no profit or at a loss.

The one positive is that if the valuation dropped enough it may become attractive to an existing (profitable) retailer where with integration they may be able to make it profitable.

imo

AO World revenues up


Online electrical retailer AO World's UK business continued to grow with ao.com revenue up by 10.3% year on year and overall UK revenue up by 8.9%, against tough comparatives.

The group said that in Europe revenue for the period was up 28.4% year on year, on a constant currency basis, reflecting a period of focus on building its logistics capabilities, capacity and a solid base for the business.

Overall group revenue was up 12.3% for the quarter, year on year.

The group expects the performance for the full year to fall within the guidance previously given but remains cautious about the final quarter given the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand.

Chief executive John Roberts said: "AO continues to make progress on its long term plan; delivering sales growth across all categories and territories, and convincing more customers to experience the AO Way.

"We performed well over our peak period, particularly through Black Friday, with the sheer dedication of our teams enabling us to deliver to our customers as promised.

"We also delivered strategic progress during the quarter. We launched computing in the UK, and audio-visual in Germany, retailing both these categories the AO Way - offering a simply better customer experience, executed brilliantly by a brand and team that customers and suppliers trust. Early trading in computing has been encouraging and sales are building as we invest in attracting traffic to the category on ao.com, while both our businesses in Europe continue to gain traction and delight customers.

"Looking ahead we have three months left of the current financial year and are mindful of the uncertain economic outlook. However, we remain confident that our market leading proposition will continue to drive customers to experience the AO Way and enter the New Year excited by the opportunities ahead."

from a consumer's point of view, i believe AO is seen as pretty good all round - never used them myself
however, there have long been rumours that the company is not in very strong financial health

personally, i see no merit in buying the shares

I think their after care protection/insurance makes the money. White goods are bulky and profit wise hmmmm.

Take your pick :-

12 Jan Numis Buy 169.70 250.00 250.00 Retains

12 Jan Shore Capital Hold 169.70 - - Retains

12 Jan Panmure Gordon Sell 169.70 123.00 123.00 Reiterates