Online electricals retailer AO World set to report soaring full-year earnings
Online electricals retailer AO World has said it expects to report soaring full-year earnings as UK sales surged by 88% in its final quarter.
The bumper performance helped AO’s group revenues jump by 62% to £1.66 billion in the year to March 31.
It now expects annual underlying earnings to surge to between £63 million and £72 million, up from £19.6 million the previous year, despite extra costs relating to the pandemic.
But the group added it expects to book a charge of around £15 million due to customers cancelling long-term mobile and warranty contracts as they change their spending behaviour amid the pandemic.
John Roberts, AO World founder and chief executive, gave a bullish outlook for the group despite the prospect of increasing competition from high street rivals after the reopening of non-essential shops this week.
He said: “I believe that these market dynamics will stick and, whilst there is inevitable uncertainty, the direction of travel is firmly with AO and the business model we have spent more than 20 years building.
“I expect that we will continue to be a double-digit growth business in the year ahead, even now as we lap the tough comparatives from last year with physical stores open.”