21st Jul 2015 06:59
LONDON (Alliance News) - AO World PLC Tuesday said that it is on track with its long-term strategic process as it continues to build brand awareness and plans to expand its services in Europe.
The FTSE 250 online domestic appliances retailer said that sales continue to "build satisfactorily" in Germany, where it has entered into a ten-year lease for a new European distribution facility in Bergheim near Cologne, expecting to take occupation during the first half of the financial year 2017. The property will replace two of its existing sites and will facilitate expansion into countries surrounding Germany, the company said.
Meanwhile in the UK, AO World said revenue grew 6.5% in the three months to June 30, with orders up 13.9%, while AO.com experienced revenue growth of 11.2%. It said it had a strong start to trading in July and is encouraged by the indications of growth in housing transactions and disposable income in the broader market.
"We are mindful of recent volatility and intense competitive activity in the market. However, our customer loyalty continues to increase and we see this coming through in repeat business. The business is operating efficiently and we continue to expect the business model to deliver as expected for the full year," the company said in a statement.
AO World added that it has partnered up with British advertising agency Karmarama, which will head up its creative initiative moving forward.
AO World will release its half-year results for the six months ending September 30 on November 24.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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