Shares jump higher at AO World
SHARES in AO World rallied yesterday after the online white goods company reported a surge in third quarter sales, thanks in part to the success of Black Friday weekend.
The so-called e-tailer, which sells kitchen appliances and televisions online from its warehouse in Crewe, said revenue from its website jumped 38 per cent three months to 31 December 2014 compared with the same time the previous year.
Total sales, which include sales fulfilled on behalf of third party retailers, rose by 26 per cent in the quarter. The figures exclude Germany, where it launched in October and where AO said it was “operationally ahead of plan”.
The group said sales of “audio visual categories” such as televisions, which the company started selling for the first time in May last year, “built well” in the period, adding it was “particularly pleased with performance in the run-up to Christmas”.
Shares rose six per cent to close at 262.50p, as the City welcomed AO’s strong results. However, the share price is still below its original offer price of 285p.
AO World’s float was met with great success in February last year, with shares soaring on the first day. The stock has since had a choppy year, along with other tech stocks in London and the US, on fears that a bubble was forming in the industry.