Member Article

Bolton-based AO World reports narrowing losses

Online electronics retailer, AO World has reported pre-tax losses of £2.8m for the year ending 31 March 2015, an improvement on the previous year.

The stats

Bolton-based AO World has reported pre-tax losses of £2.8m for the year ending 31 March 2015, this is compared to a pre-tax loss of £7.5m for the previous year.

Despite these losses total revenue was up 23.8% to £476.7m (2014: £384.9m).

The analysis

The group successfully launched in Germany in October 2014, and also launched consumer finance products that month.

It also saw increases in UK repeat sales which saw levels rise from 36% to 45%.

The comment

Chief executive officer, John Roberts, said: “AO is an exceptional business and I am very pleased with the achievements we have made over the year, particularly in Germany and with the successful introduction of the AV category to AO.com.

“Our long-term plan is on track and, despite missing our financial expectations for the year, we have continued to take market share in the UK MDA market delivering significant growth in UK sales and Adjusted EBITDA.

“Our customer proposition remains strong - our unbeatable prices, huge range and amazing service mean our customer satisfaction levels have remained exceptional and we will continue to focus on this in the year ahead.

“The passion we have for our customers, staff and all other stakeholders has never been stronger and we still believe we can change the way Europe buys its electricals, simply by caring more and executing brilliantly.”

The summary

AO World are still in the red but have improved their books considerably, its success is down to launching in Germany and increasing sales in the UK.

This was posted in Bdaily's Members' News section by Sophia Taha .