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Electrical and white goods retailer AO World has reported annual losses of £18.9 million covering the year ending March 31st.
This comes after pre-tax losses of £13.5 million in the previous financial year. Boss John Roberts has blamed tough trading in the UK and Europe for its losses.
The retail reports that core UK revenues rose 5.7% on a like-for-like basis against a backdrop of “ongoing weak consumer confidence in a continuingly competitive market, particularly in the UK”.
Despite this, UK underlying earnings lifted by 20.9% year-on-year to £27.4 million. However, in mainland Europe, losses widened to £27.8 million compared £26 million the previous year.
“The UK result was achieved against an ongoing tough trading environment and includes three months’ contribution from Mobile Phones Direct which we acquired in December 2018 and its integration continues to go to plan,” said Roberts.
In November 2018, AO World acquired Mobile Phones Direct for £32.5 million.
The acquisition was set to significantly increase the scale and sophistication of AO’s mobile proposition, which was limited to the sale of handsets only (without airtime or associated services).
In January 2019, Roberts, – who founded the online retailing group in 2000 – resumed the role of CEO after Steve Caunce stepped down.
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