19th Nov 2019 10:04
(Alliance News) - AO World PLC on Tuesday said its revenue grew in the first half of its current financial year, thanks to acquisitions.
AO World shares were trading 14.9% higher in London in morning trade at 65.60 pence each.
The online electrical retailer reported a narrowed pretax loss of GBP5.9 million for the six months to the end of September compared to GBP10.9 million loss a year prior, as revenue grew 16% to GBP470.1 million from GBP404.2 million. On a like-for-like basis revenue advanced by 3.2%.
Overall revenue in the UK increased by 20% to GBP402.7 million, excluding the impact of the acquired Mobile Phones Direct Ltd in December 2018.
Product revenue from AO World's retail websites - comprising ao.com, marketplaces and third-party websites - increased by 6.8% to GBP311.2 million, largely driven by a good performance in MDA product sales.
Service revenue increased by 14% to GBP16.1 million, while Commission revenue surged to GBP61.9 million from GBP14.6 million, largely attributable to the acquisition of AO Mobile Ltd in December last year.
AO World said that the reduction of third-party logistics revenue to GBP6.8 million from GBP7.3 million year-on-year reflects the loss of the contract to deliver goods on behalf of Argos, a part of J Sainsbury PLC.
"These results were achieved during a period of significant change for the business where we were focused on laying the foundation for disciplined, long-term growth," said Chief Executive John Roberts.
"We have also kept a clear focus on cash generation, and we expect to be cash generative at a group level as we enter the new financial year," added Roberts.
By Evelina Grecenko; [email protected]
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