Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  AO World plc    AO.   GB00BJTNFH41


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

AO World : Anticipating Brexit disruption, AO World doubles warehouse capacity

11/24/2020 | 05:30am EST
AO distribution centre in Crewe, Cheshire

LONDON (Reuters) - British online electricals retailer AO World, whose sales have soared during the pandemic, has doubled its warehouse capacity to cope with any supply chain disruption at the end of Britain's Brexit transition period with the European Union on Dec. 31.

AO sells washing machines, fridges, cookers and televisions, as well as mobile phones and printers.

Its founder and chief executive John Roberts said the main challenge for the group from Brexit was supply chain disruption rather than overall market demand.

"We've about doubled our warehousing capacity and we've placed orders to hopefully fill that capacity, to insulate customers from that disruption," he told Reuters on Tuesday. "But we can't give any guarantees on that."

AO was already seeing some supply chain disruption at ports such as Felixstowe in eastern England, he said.

Britain is 37 days away from the end of a Brexit transition period, after which EU rules that ensure free movement of goods between Britain and the EU will cease to apply.

Talks on how to replace EU rules and keep goods flowing freely have yet to reach agreement.

Roberts said disruption from Jan. 1 was unlikely to be for just a few days. "Supply chains tend to take a bit of time to work through," he said.


AO, which operates in Britain and Germany, swung to a first-half profit after a 53.2% jump in revenue.

The group has benefited from people working from home during the crisis, which has driven demand for electrical appliances and home office products.

AO has also benefited from store-based rivals being closed during national lockdowns.

Its shares, which have more than quadrupled in value this year, were down 4.8% at 0951 GMT.

Pretax profit was 18.3 million pounds ($24.5 million) in the six months to Sept. 30 versus a loss of 5.9 million pounds a year earlier.

Revenue was 717 million pounds, and growth rates have increased in the third quarter.

"This has been a half year like no other. I believe our market has changed as a result, forever. Online is now the dominant retail channel for customers and manufacturers alike," said Roberts.

He forecast a record Black Friday (Nov. 27) performance from AO and for the overall electricals market.

He also said AO's German business was on track to achieve monthly profitability on a core earnings basis during the peak trading period, and was expected to be profitable from full year 2022.

($1 = 0.7476 pounds)

(Reporting by James Davey; Editing by Kate Holton, Keith Weir and Jan Harvey)

By James Davey

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AO WORLD PLC -4.24% 361.5 Delayed Quote.-8.15%
EURO / BRITISH POUND (EUR/GBP) 0.07% 0.88974 Delayed Quote.-0.48%
All news about AO WORLD PLC
08:14aAO WORLD : Electrical retailer AO World's pandemic costs take shine off sales
02:18aAO WORLD : Fiscal Q3 Revenue Jumps 67% in UK, 77% in Germany
2020London stocks end at multi-month highs on vaccine optimism, commodity gains
2020AO WORLD : Anticipating Brexit disruption, AO World doubles warehouse capacity
2020AO World Shifts to Fiscal H1 Profit on 53% Spike in Revenue
2020AO WORLD PLC : half-yearly earnings release
2020London stocks slump on further coronavirus lockdowns, Brexit uncertainty
2020AO WORLD : sales jump as pandemic boosts electricals demand
2020AO WORLD : Electricals seller Dixons exploring partial IPO of Nordics business
2020ASOS, AO World and Ocado winners as online sales surge during UK lockdown
More news
Sales 2021 1 584 M 2 157 M 2 157 M
Net income 2021 - - -
Net cash 2021 64,3 M 87,5 M 87,5 M
P/E ratio 2021 -
Yield 2021 -
Capitalization 1 783 M 2 420 M 2 427 M
EV / Sales 2021 1,08x
EV / Sales 2022 0,97x
Nbr of Employees 3 000
Free-Float 57,1%
Duration : Period :
AO World plc Technical Analysis Chart | AO. | GB00BJTNFH41 | MarketScreener
Technical analysis trends AO WORLD PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 4
Average target price 401,25 GBX
Last Close Price 377,50 GBX
Spread / Highest target 40,4%
Spread / Average Target 6,29%
Spread / Lowest Target -40,4%
Managers and Directors
John Charles Roberts Chief Executive Officer & Executive Director
Geoffery Ian Cooper Non-Executive Chairman
Jonathan Mark Stephen Higgins Chief Financial Officer & Executive Director
Christopher John Hopkinson Non-Executive Director
Marisa-Luisa Cassoni Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
AO WORLD PLC-8.15%2 420
PINDUODUO INC.-9.27%197 684
SHOPIFY INC.3.40%143 731
MERCADOLIBRE, INC.10.54%92 348