AO World reports loss for the year

washing machines Image copyright Reuters

AO World, the online domestic appliance retailer, has reported a full-year pre-tax loss of £2.9m and says trading in the UK "remains challenging".

The company had issued a profit warning in February, revising down expectations for its results.

Revenues for the year to the end of March were 24% higher at £477m - in line with the revised expectations.

The company said it was "on track" with its plans so far in the new financial year.

AO World floated on the stock exchange in February last year. Its valuation at the time - a market capitalisation of £1.2bn, despite profits of less than £8m - stunned the City.

"Despite missing our financial expectations for the year, we have continued to take market share in the UK," said AO World chief executive John Roberts.

Mr Roberts said he was also "encouraged by progress" in its German business, which launched in October last year.

In February, the firm said sales had slowed in the final quarter of the year and that it had "become apparent" that it couldn't maintain the year-on-year growth boosted by the publicity surrounding its float.

Shares in the firm fell sharply after February's profit warning. Following the release of the results, shares in AO were down 3.5% on the day at 170p - still well below their 285p flotation price.

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