AO World closes loss-making operations in the Netherlands
Online white goods retailer AO World has announced the closure of its business in the Netherlands, as the group reported an operating loss of £10.6m for the first half.
Chief executive John Roberts said the closure of the retailer’s Dutch operations was part of its “relentless focus to accelerate profitability in Europe” and would allow it to “concentrate on the transformation of our German business”.
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AO World’s operating loss for the six months to 30 September was flat on the same period last year.
The group reported a 16.3 per cent increase in revenues to £470.1m, up from £404.2m a year earlier. Excluding revenues from its newly-acquired AO Mobile business, revenue rose 3.2 per cent on a like-for-like basis.
UK revenue rose 20.3 per cent during the period to £402.7m, or 4.5 per cent excluding AO mobile. Revenue from its European business fell 3.4 per cent to £67.4m.
“These results were achieved during a period of significant change for the business where we were focused on laying the foundation for disciplined, long-term growth,” said Roberts.
“There are encouraging green shoots of profitable growth across our UK business, including within our core MDA offer and we will continue to invest to drive this further.”
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AO World reported a basic loss per share of £1.01p for the period, down from £2.31p in 2018.
Roberts said AO World had “kept a clear focus on cash generation” and expects “to be cash generative at a group level as we enter the new financial year”.