12th May 2020 10:48
(Alliance News) - AO World PLC on Tuesday said it expects its annual results to land within the market consensus range and the online electrical goods retailer added that it has gained market share as the pandemic forced European governments to implement lockdown measures.
AO shares were 14% higher at 97.55 pence each in London on Tuesday morning.
For the year to March 31, AO expects headline revenue between GBP1.02 billion and GBP1.09 billion, in line with market forecasts. This could represent a jump as high as 20% from the GBP902.5 million it reported the year prior.
AO expects headline adjusted earnings before interest, tax, depreciation and amortisation between GBP5.0 million and GBP11.6 million, again in line with the market range and swinging from a GBP400,000 loss.
The headline figures does not include operations in the Netherlands which have since discontinued.
Focus now turns to Covid-19 which has forced governments in the UK and Germany, two big markets for AO, to implement lockdowns.
AO said: "Historically, a large proportion of sales of electricals have been made through bricks and mortar stores. With the implementation of lockdown measures, overnight 100% of the market moved online. As we move towards a new normal, we would expect the online market in electricals to maintain a higher share than prior to Covid-19."
The company added that "shopping online has become an unavoidable way of life during lockdown".
"Despite a decline in the overall market of the categories in which we operate, AO has grown market share and seen increased demand and sales across all categories since the lockdown measures came into force," AO said.
The company will release its full-year results on July 14, following guidance by the UK Financial Conduct Authority.
By Eric Cunha; [email protected]
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