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Business

Published on April 15th, 2021 | by The GC Team

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AO reports a year of “outstanding financial and operational progress”

Online electricals retailer AO delivered a strong performance for the year ended 31st March after capitalising on the challenges and opportunities presented by the Covid pandemic.

Group revenues increased by 62% to £1.66bn, with momentum continuing in the fourth quarter.

The UK website, AO.com, increased year-on-year revenue by 88% in Q4, while the German website, AO.de, increased full year revenue by 77%. The company said the German business achieved run rate profitability in Q3 and is expected to generate profits in the current financial year.

Adjusted EBITDA at the Group, despite Covid-related costs, is expected to be in the range £63m to £72m (FY 2020 £19.6m), in line with market consensus.

AO said Government support was either repaid or not claimed over the period and had no impact on profitability.

Founder and Chief Executive John Roberts said: “I am delighted to report a year of outstanding financial, operational and strategic progress. The last 12 months have been like no other and we have been very proud to rise to the challenges for our customers.

“We were brave and bold in our capacity and infrastructure investments early in the year and now look forward to building on that scale advantage.

“I believe that these market dynamics will stick and, whilst there is inevitable uncertainty, the direction of travel is firmly with AO and the business model we have spent more than 20 years building. I expect that we will continue to be a double-digit growth business in the year ahead, even now as we lap the tough comparatives from last year with physical stores open.”

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