Revenue up 16.6% at Bolton’s AO World

Bolton-based European online electrical retailer AO World said its group revenue was up 16.6% for the three months to December 31, 2017, year on year.

In a trading update for its third quarter, AO World said its UK business continued to grow, with overall UK revenue increasing 11.4% and revenue increasing 11.2% year on year.

It said revenue in its Europe business continued to grow strongly — up 58.4% year on year, on a constant currency basis.

AO shares rose about 3% to around 135p, giving the firm a current stock market value of more than £600 million, according to Reuters data.

“We expect the group’s performance for the full year to fall within the range of analysts’ expectations but remain cautious given the uncertain UK economic outlook,” said the company statement.

AO World CEO Steve Caunce said: “We have performed well over our peak period delivering further sales growth across all our territories and are on track with our long-term strategy.

“We are particularly pleased with the double digit sales growth in our UK business, which has been achieved against a fiercely competitive environment and normalised marketing expenditure. 

“Our customers in the UK benefitted from our Black Friday deals this year over a two week period enabling us to manage demand more effectively and deliver an even better experience for customers. 

“We are encouraged by the sales growth in our newer categories and we have continued to deliver excellent customer service throughout the period across the business. 

“Our Europe operations are progressing in line with our plans and we are pleased with the strong growth achieved, given the limited above the line marketing expenditure.

“Our brand is attracting both new and repeat customers in mainland Europe and customer satisfaction remains high. 

“Looking ahead, although we need to be mindful of the uncertain economic outlook (particularly in the UK), as long as we are relentless in our focus on making things easy for our customers, we can be confident that they will continue to choose the AO Way.”