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London markets whacked by AO World tumbling on supply chain profit hit

Prices On Consumer Goods Rise As Supply Chains Bottleneck
MIAMI, FLORIDA - MAY 12: Refrigerators for sale in the appliance department at a Lowe's store on May 12, 2021 in Hialeah, Florida. Reports indicate that consumer prices surged in April, with it attributed to a bottleneck in companies getting supplies for manufacturing and rising demand from consumers as the Covid-19 pandemic eases. (Photo by Joe Raedle/Getty Images)

Supply chain snarl ups and soaring costs have whacked AO World’s profits, sending the online electricals retailer’s shares tumbling, dragging the mid-cap FTSE 250 down with it this morning.

In the first hour of trading, London markets plunged into the red, with the capital’s premier FTSE 100 index dropping 0.59 per cent to 7,212.35 points, while the FTSE 250 lost 0.95 per cent falling to 23,207.03 points.

FTSE 250 listed AO World swung to a pre-tax loss of £10m during the first half of the year, a sharp decline from the £18m profit in the same six months a year ago.

The firm also warned that the festive trading period would be “significantly softer” than first thought.

The downbeat assessment prompted investors to dump the stock, sending AO World’s tumbling more than 24 per cent in just an hour of trading.

Most sectors took a beating during opening exchanges today, with Spirax-Sarco leading the losses, having 3.59 per cent shaved off its share price.

Middle-class favourite online grocer Ocado weighed the FTSE 100 down, dipping 2.37 per cent, while property search site Rightmove was down 2.13 per cent.

More to follow.