TIDMAO.
RNS Number : 5621M
AO World plc
12 May 2020
12 May 2020
AO WORLD PLC
TRADING UPDATE AND CONFIRMATION OF TIMING FOR PRELIMINARY
RESULTS AND AGM
AO World plc (the "Company"), a leading European online
electrical retailer, provides an update on trading and confirms the
revised date for publication of its preliminary results for the 12
months ended 31 March 2020 (the "Preliminary Results").
Our people and our customers
During this operationally challenging period, the safety of our
people and our customers has continued to be our top priority. As
such, we have adapted the services we offer, invested to ensure
social distancing and enhanced safety measures to protect our
people in front line operational roles, whether in our warehouses
or making deliveries. We have also equipped everyone who can work
from home with what they need to do so and supported our people in
front line operational roles. We continue to prioritise services to
the most vulnerable members of society and donate essential
products to those in need.
We would like to thank our teams across the business for the
culture they live and breathe every day; its value has shone
through in the current extraordinary times. This is certainly a
time when we are pleased to realise the value of our strong
culture.
Confirmation of timing of preliminary results and AGM
Following FCA, FRC and PRA guidance on the timing and content of
company reporting, the Company confirms that it expects to release
its Preliminary Results on 14 July 2020 with the date of the Annual
General Meeting expected to be 20 August 2020. The revised timing
will allow a greater amount of clarity on the outlook for the
current financial year at the time of the Preliminary Results, as
well as permitting our team and auditors some extra flexibility as
we adapt to new working practices.
Financial Year ended March 2020(1)
The Company expects its headline financial results excluding
operations in the Netherlands (which do not continue into FY21) for
Revenue and Adjusted EBITDA (pre IFRS16) to fall within the range
of analyst expectations(1) .
Shortly following the year end we re-financed our GBP60m
Revolving Credit Facility and GBP20m Term Loan which were due to
run until June 2021. These facilities have been consolidated into a
new GBP80m RCF which matures in April 2023.
During the year, we made substantial progress against our four
immediate strategic priorities: UK MDA growth of +10%; accelerating
the journey to profitability in Germany; being cash generative(2) ;
and leveraging our eco-system. We will update fully on our progress
in the Preliminary Results.
Post period end and Covid-19
The lockdown measures implemented by Governments in both the UK
and Germany created a unique set of circumstances with customers
forced to stay at home and relying on their electrical and
electronic products like never before. Shopping online has become
an unavoidable way of life during lockdown and we are proud of the
part that AO has been able to play supporting our customers through
this unprecedented time.
Historically, a large proportion of sales of electricals have
been made through bricks and mortar stores. With the implementation
of lockdown measures, overnight 100% of the market moved online. As
we move towards a new normal, we would expect the online market in
electricals to maintain a higher share than prior to Covid-19.
Despite a decline in the overall market of the categories in
which we operate, AO has grown market share and seen increased
demand and sales across all categories since the lockdown measures
came into force.
We will update more fully on trading at the full year results on
14 July 2020 by which time we expect to have a clearer view on
outlook.
John Roberts, AO Founder and Chief Executive Officer, said:
"I want to thank the amazing team of AOers for their dedication,
sacrifice and professionalism through the very recent period in
particular but also throughout the last 12 months. They have
delivered in spades against the key priorities we set and we
entered our new financial year in good shape."
"Our team in Germany has embraced our One AO approach and is
benefiting on all key metrics as a result. We are more certain than
ever of the potential of that business and the platform it provides
for growth."
"For the last 20 years I believe we have been a driving force of
change, making things better, easier and cheaper than ever before
for customers with outstanding levels of service. Never before has
that service been more necessary or relevant and so I am very proud
of the record customer satisfaction scores we are achieving through
this period. "
"In terms of online shopping behaviour, I believe we have seen
five years accelerate into only five weeks and we will plan to
cement that change as we impress more new customers than ever with
the AO Way."
For further information, please contact:
AO World plc Tel: +44(0) 1204 672400
John Roberts ir@ao.com
Mark Higgins
Tulchan Communications
Will Smith
James Macey White
William Booth
Notes
(1) Current range of analyst expectations is between GBP1.02bn
and GBP1.09bn for revenue and for Adjusted EBITDA GBP5.0m and
GBP11.6m.
(2) Cash generative on an Adjusted EBITDA less debt repayment,
interest, taxes and monthly share of annualised capex by the end of
the March 2020 financial year and on a run rate basis going
forward.
About AO
AO World plc, headquartered in Bolton and listed on the London
Stock Exchange, is an online electrical retailer, with a simple
mission: to have the happiest customers by relentlessly striving
for a better way. We create value by providing electrical products
and related services to our customers, offering a huge range, a
price-match promise and market-leading customer service.
We sell major and small domestic appliances and consumer
electronics in the UK and Germany and deliver them via our in-house
logistics business and carefully selected third parties. We also
provide ancillary services such as the installation of new and
collection of old products and offer product protection plans and
customer finance.
In the UK, AO operates in four main categories (Major Domestic
Appliances "MDA", Small Domestic Appliances "SDA", Audio Visual
"AV" and Computing) and more recently added Gaming, Mobile, Smart
Home and Photographic devices and equipment to its ranges.
Following the acquisition of Mobile Phones Direct Limited in
December 2018, AO has significantly broadened its mobile phone
offering.
AO launched in Germany in October 2014 with MDA and now sells
Floorcare, AV and SDA categories. In December 2018, AO acquired
Mobile Phones Direct making AO the UK's largest pureplay mobile
phone retailer.
AO also has a majority equity stake in AO Recycling, a WEEE
processing facility, allowing AO to ensure its customers' waste is
dealt with responsibly in the UK.
Cautionary statement
This announcement contains certain forward-looking statements
(including beliefs or opinions) with respect to the operations,
performance and financial condition of the Group. These statements
are made in good faith and are based on current expectations or
beliefs, as well as assumptions about future events. By their
nature, future events and circumstances can cause results and
developments to differ materially from those anticipated. Except as
is required by the Listing Rules, Disclosure Guidance and
Transparency Rules and applicable laws, no undertaking is given to
update the forward-looking statements contained in this document,
whether as a result of new information, future events or otherwise.
Nothing in this document should be construed as a profit forecast
or an invitation to deal in the securities of the Company. This
announcement has been prepared for the Group as a whole and
therefore gives greater emphasis to those matters which are
significant to AO World plc and its subsidiary undertakings when
viewed as a whole .
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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