AO World plc Trading Statement (6484N)
01 October 2021 - 4:00PM
UK Regulatory
TIDMAO.
RNS Number : 6484N
AO World plc
01 October 2021
This announcement may contain inside information for the
purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR. Upon the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain.
1 October 2021
AO WORLD PLC
FIRST HALF TRADING UPDATE FOR THE 6 MONTHS TO 30 SEPTEMBER
2021
Continued growth in a challenging operating environment
AO World plc ("the Group" or "AO"), a leading European online
electrical retailer, today issues a post close trading update for
the six months ended 30 September 2021.(1)
On a one-year like-for-like basis, Group revenues for the first
half increased c.5% against strong comparatives during the initial
Covid lockdown. In the UK, revenues over the period increased c.6%,
with growth impacted by the nationwide shortage of delivery drivers
and ongoing disruption in the global supply chain. In Germany,
revenues in local currency rose c.3% despite the competitive online
market. The challenging market dynamics in both the UK and Germany
resulted in lower volumes than expected which affected operational
leverage, particularly in the second quarter.
Given the exceptional operating environment over the past 18
months, our performance over the comparable period in H120(2)
provides a more meaningful overview of our business performance
than a comparison with H121(2) . Therefore, on a two-year
like-for-like basis, Group revenues grew c.66%, with our UK
business growing c.63%. Like-for-like revenues in Germany grew
c.84% over the same period.
Whilst we continue to see industrywide issues relating to
ongoing supply chain disruption, we have implemented measures to
help mitigate these challenges in our logistics operations. We
expect revenue growth in the second half of the year to record a
similar growth rate to the first half of this year and anticipate
that Group Adjusted EBITDA(3) for the full year to be between
GBP35m and GBP50m, with profits more heavily weighted than usual
towards the second half of the year driven by the peak trading
period.
Whilst the macro-outlook remains uncertain, we have confidence
in the proven resilience of our business model and are well placed
to meet customer demand in our peak third quarter sales period.
AO World will announce its interim results for the half year on
Tuesday, 23 November 2021.(5)
Enquiries
AO World plc +44 (0)7525 147 877
John Roberts, Founder and Chief IR@AO.com
Executive
Mark Higgins, Group CFO
Cynthia Alers, Investor Relations Director
Powerscourt Tel: +44 (0)20 7250 1446
Rob Greening ao@powerscourt-group.com
Nick Hayns
Sam Austrums
About AO
AO World plc, headquartered in Bolton and a constituent of
the FTSE 250, is a leading online electrical retailer, with
a mission to be the global destination for electricals. Our
strategy is to create value by offering our customers brilliant
customer service and making AO the destination for everything
they need, in the simplest and easiest way, when buying electricals.
In the UK, we sell major and small domestic appliances and
a growing range of mobile phones, AV, consumer electricals
and laptops, delivering them via our in-house logistics business
and carefully selected third parties. We also provide ancillary
services such as the installation of new products and recycling
of old products as well as offering product protection plans
and customer finance. AO Business serves the B2B market in
the UK, providing electricals and installation services at
scale. AO launched in Germany in October 2014 selling major
and small domestic appliances, AV and electrical floorcare
products. AO also has a majority equity stake in AO Recycling,
a WEEE processing facility, allowing AO to ensure its customers'
electronic waste is dealt with responsibly in the UK.
Notes
(1) Preliminary unaudited figures based on management estimates.
(2) H120 covers the period 1 April - 30 September 2019. H121
covers the similar period in 2020.
(3) Group Adjusted EBITDA is defined as profit/(loss) before
tax, depreciation, amortisation, net finance costs, and other
adjusting items.
(4) Peak trading covers the period October to December.
(5) Details will be posted on our website Investor Centre
| AO World (ao-world.com) and in our interim results announcement
to be published on the day.
Cautionary statement
This announcement contains certain forward-looking statements
(including beliefs or opinions) with respect to the operations,
performance and financial condition of the Group. These statements
are made in good faith and are based on current expectations
or beliefs, as well as assumptions about future events. By
their nature, future events and circumstances can cause results
and developments to differ materially from those anticipated.
Except as is required by the Listing Rules, Disclosure Guidance
and Transparency Rules and applicable laws, no undertaking
is given to update the forward-looking statements contained
in this document, whether as a result of new information,
future events or otherwise. Nothing in this document should
be construed as a profit forecast or an invitation to deal
in the securities of the Company. This announcement has been
prepared for the Group as a whole and therefore gives greater
emphasis to those matters which are significant to AO World
plc and its subsidiary undertakings when viewed as a whole.
ENDS
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END
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