AO World sees continued growth

AO World is on track to meet full year forecasts following continued revenue growth.

A Q3 trading update said that its UK business continued to grow with overall revenue up by 11.4% and revenue up by 11.2% year on year.

AO said revenue in its Europe business has continued to grow strongly - up 58.4% year on year, on a constant currency basis (up 62.0% in sterling).

Overall group revenue was up 16.6% for the quarter, year on year.

The group said it expects the performance for the full year to fall within the range of analysts' expectations but remains cautious given the uncertain UK economic outlook.

Chief executive Steve Caunce said: 'We have performed well over our peak period delivering further sales growth across all our territories and are on track with our long-term strategy.

'We are particularly pleased with the double digit sales growth in our UK business, which has been achieved against a fiercely competitive environment and normalised marketing expenditure.

'Our customers in the UK benefitted from our Black Friday deals this year over a two week period enabling us to manage demand more effectively and deliver an even better experience for customers.

'We are encouraged by the sales growth in our newer categories and we have continued to deliver excellent customer service throughout the period across the business.

'Our Europe operations are progressing in line with our plans and we are pleased with the strong growth achieved, given the limited above the line marketing expenditure. Our brand is attracting both new and repeat customers in mainland Europe and customer satisfaction remains high.

'Looking ahead, although we need to be mindful of the uncertain economic outlook (particularly in the UK), as long as we are relentless in our focus on making things easy for our customers, we can be confident that they will continue to choose the AO Way.'