Published on March 30th, 2017 | by The GC Team0
Trading in line with expectations, outlook cautious, says AO
Online electrical retailer AO World today announced a placing to raise up to £50 million and said trading for the full year ending 31st March is anticipated to be in line with expectations.
Group revenue is expected to be c.£700 million, up around 17% year on year. Adjusted EBITDA guidance has been tightened to £-2.4 – £0 million and Group cash as at 31 March 2017 is anticipated to be at least £27 million.
UK revenue is expected to be c.£629 million, with own-brand revenue growth of around 16% year on year forecast.
In Europe, revenue is predicted to be c.£71 million, with expected Q4 growth of around 58% in local currency.
Looking ahead, AO said it broadly expects the patterns of trading seen in the second half of FY2017 to continue into the year ahead, with UK business profits largely being reinvested in its European operations.
“The Board continues to be cautious given the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand,” the company said.