AO World reports on full year trading

AO World plc has published a post-close trading update for its full financial year; the twelve months to 31 March 2018 (FY2018).

- Full-year trading for FY2018 is expected to fall within the range of current market forecasts.(1)

- Group revenue is expected to be c. £796m, slightly above the mid-point of analysts’ expectations, and up c.14% year on year.

- Group Adjusted EBITDA loss is expected to be around the middle of the range.

UK performance
Overall UK revenue for the year to 31 March 2018 is expected to be c. £680m, up 8% year on year with revenue from AO.com of c. £606m up c.9% year on year.

Growth in Q4 was achieved in what remains a competitive market with limited advertising spend. When compared to this period in the previous year we have undertaken relatively less promotional activity which has supported gross margin.

Europe performance
We achieved revenue growth of c.55% for the year in local currency and our European operations are on trajectory to achieve our targets in these existing territories in FY21. As a result of our strong momentum we have now reached an inflection point in the financial performance in these existing Europe operations and expect to see further progress as we move forward.

Our next update to the market will be our preliminary statement on 5 June 2018

(1) Company compiled revenue consensus of £794.7m, with a range of £773.5m to £809.5m and EBITDA consensus of -£4.2m, with a range of -£9.7m to -£1.4m

Source : AO World

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.