Shares in AO World jumped this morning after the electronics retailer said sales had jumped by more than a half over the last six months.
The white goods group said it expected revenue to hit £715m in the half-year to the end of September, up 57 per cent on the same period last year.
Sales were up 54 per cent in the UK, while the company’s German division soared 83 per cent on a constant currency basis.
The online retailer has benefitted from a shift to online shopping during the coronavirus pandemic, which has forced millions of people to stay at home.
Many brick-and-mortar stores were allowed to reopen in July, but AO World said the figures showed it had maintained its momentum from the first quarter.
Shares in the retailer jumped more than 17 per cent to 272p by late morning.
AO World noted that it had seen increased cashback redemption rates and cancellations of contracts in its mobile business, which took a toll on gross margin.
“The last six months of trading have been like no other during my two decades in the business. AO was in good shape coming into this financial year and the global, structural shift in customer behaviour to online, accelerated by Covid, emphasised our strengths,” said John Roberts, AO World founder and chief executive.
“The progress that we’ve made in Germany gives us the platform and confidence to grow. We remain excited by the opportunities ahead and ambitious to realise them.”
Russ Mould, investment director at AJ Bell, said: “AO’s second quarter period was always going to be a tough one and the company has delivered what many people thought was unachievable.
“Ongoing lockdown restrictions provide the tailwind that AO needs as it continues its path towards making a profit. And herein lies a big issue – everything to date has been about driving sales growth but the business hasn’t really made any proper money. That could soon change.”