AO World's share price surges as it raises its full year forecast

 
Catherine Neilan
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Thirsty Monkey
No monkeying around at AO (Source: Getty)

AO World's share price soared this morning after raising its full year forecast this morning.

The electricals retailer said its UK business had performed strongly in the last three months of its financial year, with both revenue and Ebitda ahead of expectations.

As a result, UK revenues for the year to 31 March are expected to climb 18.5 per cent, while the group as a whole should record sales growth of 27 per cent. UK adjusted Ebitda will rise by around £17m, the firm said.

AO World's share price was up 11.6 per cent on the open.

The business launched in the Netherlands at the start of March, and said it expects its European revenues to be in the current range of expectations.

In November it reported a group operating loss for the first half because of the cost of its European expansion.

However European adjusted Ebidta will be slightly better than expected because of "our focus on driving efficiencies".

"We expect such focus to continue until we move in to our new regional distribution centre in Bergheim later in the year, when we will look to accelerate volume growth," the company added.

Expectations for the next financial year are unchanged.

AO World willl publish its preliminary statement on 8 June.

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