Proactiveinvestors United Kingdom Ao World https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Ao World RSS feed en Mon, 17 Jun 2019 06:07:38 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - AO World shares shrink to 'fair value' for ShoreCap after recent tumble ]]> https://www.proactiveinvestors.co.uk/companies/news/222144/ao-world-shares-shrink-to--fair-value--for-shorecap-after-recent-tumble-222144.html Shore Capital has upgraded its recommendation for online washing machines, ovens and fridges retailer AO World PLC (LON:AO.) after its shares tumbled lower in recent months.

The electricals retailer, which expanded its offering via December’s acquisition of Mobile Phone Direct, has seen its shares wrinkle by 28% to 79p over the past month, extending their shrinkage over the past 12 months to 53%.

READ: AO World remains in the red despite new mobiles addition

Underperforming the FTSE Small Cap index, ShoreCap's analysts said the current share price has moved down towards their fair value range of 60p-79p.

In a note to clients, the analysts said: “Our view on the company for the last 18 months has been that the share price was too far ahead of events, but given the recent material share price movement downwards, we believe that now is the right time to pause for breath.”

They upgraded their recommendation for AO to ‘hold’ from ‘sell’, noting that while the current price means AO's enterprise value is 43 times higher than forecast underlying earnings (EBITDA), this will come out in the wash in 2021 with a fall to 25.4 times.

AO's recent annual results showed continued momentum in the UK, while the European business grew revenue strongly but remained loss making, they added.

The analysts also said they feel the return of founder John Roberts as AO's chief executive was a potential catalyst for the company, with recent comments suggesting increased focus on leveraging the European infrastructure, with a breakeven point for the European division during 2021 "an important strategic milestone for the company”.

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Fri, 14 Jun 2019 10:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222144/ao-world-shares-shrink-to--fair-value--for-shorecap-after-recent-tumble-222144.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190612070006_14107289/ Wed, 12 Jun 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190612070006_14107289/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190605101448_14099455/ Wed, 05 Jun 2019 10:14:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190605101448_14099455/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190604114331_14098010/ Tue, 04 Jun 2019 11:43:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190604114331_14098010/ <![CDATA[News - AO World remains in the red despite new mobiles addition ]]> https://www.proactiveinvestors.co.uk/companies/news/221446/ao-world-remains-in-the-red-despite-new-mobiles-addition-221446.html AO World PLC (LON:AO.) confirmed an improvement in annual sales, but losses increased due to difficulties in Europe and one-off costs after a change of management.

The electricals and white goods retailer lifted revenue 10.1% in the UK and 32.2% in Europe during the 12 months to 31 March, resulting in total revenue rising 13.3% to £902.5mln, as it had flagged up in a year-end statement.

READ: AO World warns founder’s return will hit profits this year

Group underlying earnings (adjusted EBITDA) remained in the red at £0.4mln, but this was an improvement on the £3.4mln losses from the prior year. 

UK adjusted EBITDA increased 21% to £27.4mln, or up 14.3% on a like-for-like basis , which would exclude December’s £38.1mln acquisition of Mobile Phones Direct (MPD). 

Over in Europe losses increased 6% to €31.3mln as AO struggled to make progress on product margins and saw cost pressures from re-configuring driver scheduling arrangements in Germany, both which the company is “working to address”.

Statutory losses swell

Along with restructuring the management team of the international operations and increased finance charges, statutory losses before tax swelled to £18.9mln from £13.5mln.

John Roberts, AO’s founder who returned to the chief executive role in January, pointed out that UK double-digit sales growth and increased profit was achieved against an ongoing tough trading environment and was helped by a contribution from MPD, where the integration was going to plan. 

Roberts was increasingly positive about trading performance and his ambition to be run-rate profitable in Europe during the 2021 financial year, saying the AO "eco-system" of retail, mobile, recycling, logistics, financial services and business-to-business trade was operating in more "harmony" in the past few months and "will be an important driver for the year ahead”. 

Zoe Mills, retail analyst at GlobalData, said the results look better because of the MBD acquisition as the core electricals division saw sales growth slow to 5.7% from 8.1% the year before, while the new addition contributed £1.5m of profits, which remain an issue for the core AO brand.

With AO trialling a potentially disruptive rental proposition, where a washing machine can be rented for £2 a week, in partnership with two housing associations and an online B2C trial through AO.com, "it remains to be seen if the pilot will work and how this will translate into improved profitability".

AO shares, which have rallied since sinking to an all-time low in April, were down 8% to 101.2p by mid-morning on Tuesday.

-- Adds share price and broker comment --

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Tue, 04 Jun 2019 07:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221446/ao-world-remains-in-the-red-despite-new-mobiles-addition-221446.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190604070008_14097044/ Tue, 04 Jun 2019 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190604070008_14097044/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190424090850_14049793/ Wed, 24 Apr 2019 09:08:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190424090850_14049793/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415105823_14041194/ Mon, 15 Apr 2019 10:58:23 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415105823_14041194/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415105748_14041192/ Mon, 15 Apr 2019 10:57:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415105748_14041192/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415104846_14041183/ Mon, 15 Apr 2019 10:48:46 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190415104846_14041183/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190405090005_14030550/ Fri, 05 Apr 2019 09:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190405090005_14030550/ <![CDATA[News - AO World falters as it warns founder’s recent return will see it swing to a loss this year ]]> https://www.proactiveinvestors.co.uk/companies/news/217942/ao-world-falters-as-it-warns-founders-recent-return-will-see-it-swing-to-a-loss-this-year-217942.html White goods retailer AO World PLC (LON:AO.) has warned that it will swing to a loss this year following the recent return of its founder.

John Roberts was re-appointed as AO’s chief executive back in January after the firm parted company with Steve Caunce, who oversaw a 30% drop in the company’s share price during his two-year tenure.

READ: AO World founder to resume CEO role

Roberts immediately set about restructuring the management team which, along with a loss-making contract in Germany that AO can’t get out of, will cost the Bolton-based group around £2.5mln this year.

These one-off costs are in addition to other charges related to the £32.5mln acquisition of Mobile Phones Direct at the end of last year.

As a result, adjusted underlying earnings (EBITDA) will likely be at the “lower end of market expectations”, AO said.

According to company-compiled consensus, City analysts had been forecasting anything from a £0.4mln underlying loss to a £2.0mln profit.

AO expects to report group revenue of around £900mln when it publishes its full-year results in June, up 13% year-on-year.

Revenues likely to be higher, though

“Over the last eight weeks we have created a mindset shift from the numbers delivered in FY19; we are setting about realising our opportunities with pace and energy,” said returning CEO Roberts.

“I look forward to updating more fully in early June on how we are accelerating our plans to grow while leveraging the infrastructure we have invested in.”

AO expects to report revenue of around £900mln for the year to the end of March when it publishes its annual results in June.

That would be 13% higher than what it generated in its last financial year, with the growth driven by a solid performance in its core UK business and a surge in orders in its smaller European business.

People aren’t spending on big-ticket items

Analysts at Peel Hunt, who have the stock as a ‘hold’, cut their price target to 105p (from 135p) to reflect this morning’s update.

They also lowered their underlying earnings forecasts for the next three years by around a third.

Peel Hunt now expects an underlying loss of £0.5mln this year, before returning to an underlying profit of £6.6mln and £16.1mln in 2020 and 2021 respectively.

“The tough consumer environment has yet to abate, and we continue to be concerned with consumer confidence in major purchases.”

Shares fell 7.3% on Thursday morning to 89.9p.

--Adds analyst comment and share price--

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Thu, 04 Apr 2019 08:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217942/ao-world-falters-as-it-warns-founders-recent-return-will-see-it-swing-to-a-loss-this-year-217942.html
<![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190404070004_14028161/ Thu, 04 Apr 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190404070004_14028161/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190320135937_14009534/ Wed, 20 Mar 2019 13:59:37 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190320135937_14009534/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190320135754_14009531/ Wed, 20 Mar 2019 13:57:54 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190320135754_14009531/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190228091759_13985083/ Thu, 28 Feb 2019 09:17:59 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190228091759_13985083/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190220102129_13975653/ Wed, 20 Feb 2019 10:21:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190220102129_13975653/ <![CDATA[News - AO World shocks with news founder John Roberts to resume CEO role as Steve Caunce steps down ]]> https://www.proactiveinvestors.co.uk/companies/news/213693/ao-world-shocks-with-news-founder-john-roberts-to-resume-ceo-role-as-steve-caunce-steps-down-213693.html AO World PLC (LON:AO.) has shocked investors with news its founder John Roberts is to resume the role of chief executive officer at the online electricals retailer with current incumbent Steve Caunce to step down.

The FTSE SmallCap firm, which sells domestic appliances like fridges and cookers, said Caunce would remain involved in the business on a part-time basis but had decided to take a step back for a better work-life balance.

READ: AO World surges as it reaffirms full-year guidance after Black Friday boosts November sales to highest ever

It added that Caunce would remain as an advisor to the CEO and the board in a part-time role.

John Roberts said: "AO's future is incredibly bright given our depth of talent at all levels of the business. I am fully committed to the business and the execution of our focussed strategy and can't wait to get stuck in again as CEO as we move onto the next exciting stage of the AO story."

In November, AO World reported a first-half loss in November and slower sales growth after being hit by lower consumer spending in the UK.

But in a January trading update, the group reaffirmed its guidance for the full year as ‘Black Friday’ boosted sales to record-breaking levels in November.

For the third quarter ended 31 December, the electricals and white goods retailer reported group revenues had risen 8.2%, with UK and Europe revenues rising by 4.4% and 31.3% respectively.

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Thu, 31 Jan 2019 08:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213693/ao-world-shocks-with-news-founder-john-roberts-to-resume-ceo-role-as-steve-caunce-steps-down-213693.html
<![CDATA[RNS press release - Change of Remuneration Committee Chair ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190131070102_13952804/ Thu, 31 Jan 2019 07:01:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190131070102_13952804/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190131070012_13952758/ Thu, 31 Jan 2019 07:00:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190131070012_13952758/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190115092514_13934985/ Tue, 15 Jan 2019 09:25:14 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190115092514_13934985/ <![CDATA[News - AO World surges as it reaffirms full year guidance after Black Friday boosts November sales to highest ever ]]> https://www.proactiveinvestors.co.uk/companies/news/212388/ao-world-surges-as-it-reaffirms-full-year-guidance-after-black-friday-boosts-november-sales-to-highest-ever-212388.html AO World PLC (LON:AO.) shares surged in early trading Friday after it reaffirmed its guidance for the full year while Black Friday boosted sales to record-breaking levels in November.

In a trading update for the third quarter ended 31 December, the electricals and white goods retailer reported group revenues had risen 8.2%, with UK and Europe revenues rising by 4.4% and 31.3% respectively.

READ: AO World shareholders approve takeover of Mobile Phones Direct

The group said customers had responded, “positively” to its Black Friday deals, which it offered over a longer period in November, leading to what it said was “smoother” sales flow and improved margins. The boost also meant November was the firm’s highest sales month ever.

For Europe, AO said the 31.3% growth was stronger than the second quarter due to a return to underlying growth levels following the impact of changes made to its driver operating model in the first half of the year.

Figures for Mobile Phones Direct, which the company acquired in a £38.1mln deal in December, were not included in the update.

As a result of the growth figures, AO said it remained “on track to deliver its long-term strategic plan” and that its expectations for the full year were unchanged.

Steve Caunce, AO’s chief executive, said the third quarter had represented “a solid performance” against a “challenging backdrop”, adding that the firm had seen “record numbers of customers choose AO for their Black Friday and seasonal electricals purchases”.

READ: AO World sinks as it reports first-half loss amid “tougher than expected” UK appliance sales

The numbers will likely bring cheer to AO’s investors after gloomy first half results in November when the firm reported a loss of £5.4mln despite a 9.9% increase in revenues to £404.2mln amid a slowdown in its core major domestic appliances markets in the UK and Germany.

Broker reiterates Sell, says firm still “subscale”

In a note to clients, analysts at City broker Shore Capital reiterated their ‘Sell’ rating on the stock, saying that the company “remains subscale, particularly in Europe and will only be EBITDA breakeven towards the end of FY2021”.

The broker added that AO was also “facing into a more competitive market given Dixons Carphone’s strategic review and an altogether uncertain consumer outlook given the ‘Brexit fog’ that clouds at least the next three months”.

“The company trades on FY2021 [price-earnings] ratio of 39x and [enterprise value/EBITDA multiple] of 37x. To us, this still looks too rich given its track record, present performance and short-to-medium term prospects despite the shares having fallen 17% over the last three months. As such, one place we do agree with AO’s management is that it remains a long-term investment proposition.”

"Wise move" to extend Black Friday period, says analyst

Zoe Mills, retail analyst at GlobalData, said that AO's decision to extend its Black Friday to a two-week period was "a wise move allowing it to spread demand for its logistic teams and better manage the influx of sales".

"With its competitors, Dixons Carphone and Argos having already adopted this strategy, it ensured AO World remained competitive over the period" Mills said, adding that the company "must continue to improve margins as it enters Q4 2018/19, especially given the prolific discounting expected in January sales and we expect this quarter to be equally challenging in terms of profitability".

The analyst added that while the figures were not included in the update, she expected the Mobile Phones Direct acquisition to be "fruitful in 2019".

Shares were up 3.4% at 128.4p.

--Adds analyst comment and updates share price--

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Fri, 11 Jan 2019 08:26:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212388/ao-world-surges-as-it-reaffirms-full-year-guidance-after-black-friday-boosts-november-sales-to-highest-ever-212388.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190111070003_13931191/ Fri, 11 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190111070003_13931191/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190109103020_13928986/ Wed, 09 Jan 2019 10:30:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190109103020_13928986/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190107101752_13925807/ Mon, 07 Jan 2019 10:17:52 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20190107101752_13925807/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181218130726_13908152/ Tue, 18 Dec 2018 13:07:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181218130726_13908152/ <![CDATA[RNS press release - Acquisition of Mobile Phones Direct Limited ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181217091426_13905846/ Mon, 17 Dec 2018 09:14:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181217091426_13905846/ <![CDATA[RNS press release - Acquisition of Mobile Phones Direct Ltd ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181214122235_13904638/ Fri, 14 Dec 2018 12:22:35 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181214122235_13904638/ <![CDATA[RNS press release - Acquisition of Mobile Phones Direct ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181214070003_13903603/ Fri, 14 Dec 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181214070003_13903603/ <![CDATA[RNS press release - Acquisition of Mobile Phones Direct Limited ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181213102732_13902626/ Thu, 13 Dec 2018 10:27:32 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181213102732_13902626/ <![CDATA[RNS press release - Acquisition of Mobile Phones Direct Ltd ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181207093133_13895662/ Fri, 07 Dec 2018 09:31:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181207093133_13895662/ <![CDATA[News - AO World shareholders approve takeover of Mobile Phones Direct ]]> https://www.proactiveinvestors.co.uk/companies/news/210234/ao-world-shareholders-approve-takeover-of-mobile-phones-direct-210234.html AO World PLC’s (LON:AO) proposed £38.1mln acquisition of online mobile phone retailer Mobile Phones Direct Limited has been approved by shareholders.

The company said of the shareholders who voted for the proposal at the annual general meeting on Thursday, 99.9% backed the deal. The number of votes cast represented 68% of the group’s total issued share capital.  

READ: AO World slips as it acquires Mobile Phones Direct but says full year trading will be “more second half weighted”

The acquisition still needs approval by the Financial Conduct Authority.

AO World announced that it had agreed to buy Mobile Phones Direct earlier this month, saying it believes the business would improve its mobile offering, which is currently limited to handsets only.

Shares fell 2.1% to 122p in afternoon trading.

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Thu, 29 Nov 2018 14:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210234/ao-world-shareholders-approve-takeover-of-mobile-phones-direct-210234.html
<![CDATA[RNS press release - Result of Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181129134542_13885617/ Thu, 29 Nov 2018 13:45:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181129134542_13885617/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181127153344_13882416/ Tue, 27 Nov 2018 15:33:44 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181127153344_13882416/ <![CDATA[News - AO World sinks as it reports first half loss amid “tougher than expected” UK appliance sales ]]> https://www.proactiveinvestors.co.uk/companies/news/209563/ao-world-sinks-as-it-reports-first-half-loss-amid-tougher-than-expected-uk-appliance-sales-209563.html Shares in AO World PLC (LON:AO.) sank in mid-morning deals Tuesday as it reported a first-half loss amid lower than expected sales of large domestic appliances.

The electricals retailer reported an underlying loss for the period of £5.4mln, narrower than the £6.3mln a loss a year ago, while revenues grew 9.9% to £404.2mln.

READ: AO World slips as it acquires Mobile Phones Direct but says full year trading will be “more second half weighted”

AO’s chief executive, Steve Caunce, said that while the company’s core major domestic appliances (MDA) markets in the UK and Germany had been “challenging”, the UK MDA segment had become “tougher than expected”.

In its divisions, the firm reported its UK adjusted underlying earnings (EBITDA) had fallen to £6.9mln £7.4mln as a result of the MDA decline, while its European business reported a narrowed EBITDA loss of €13.8mln from €15.6mln previously, helped by improvements in product margin and leverage in logistics and overheads.

He added that the firm expected full-year results to fall within the expected range as it entered its peak trading period on 9 November but added that they would be “more second-half weighted than previously anticipated”.

AO also aid that entering the second half its stock days may increase in the short to medium term as it sought to soften any potential disruption to its supply chains caused by Brexit.

“Disappointing” results but signs of hope in less MDA exposure

In a note to clients, analysts at City broker Peel Hunt said the results were “disappointing” amid the declining MDA market that was outside the firm’s control but retained its 'Hold' rating on the stock due to AO’s expansion into new categories and verticals that was reducing its exposure to MDA.

A recent example of the push to diversify was AO’s offer for Mobile Phones Direct, an online phone retailer, earlier this month for £38.1mln.

The news of the purchase received a mixed response, with analysts from broker Shore Capital at the time saying they could not see how the acquisition would be earnings enhancing.

Shares were down 6.1% at 116.6p.

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Tue, 20 Nov 2018 10:34:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209563/ao-world-sinks-as-it-reports-first-half-loss-amid-tougher-than-expected-uk-appliance-sales-209563.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181120070014_13872730/ Tue, 20 Nov 2018 07:00:14 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181120070014_13872730/ <![CDATA[RNS press release - Publication of Circular ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181109110917_13861821/ Fri, 09 Nov 2018 11:09:17 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181109110917_13861821/ <![CDATA[News - AO World slips as it acquires Mobile Phones Direct but says full year trading will be “more second half weighted” ]]> https://www.proactiveinvestors.co.uk/companies/news/208902/ao-world-slips-as-it-acquires-mobile-phones-direct-but-says-full-year-trading-will-be-more-second-half-weighted-208902.html Shares in AO World PLC (LON:AO.) slipped in early trading Friday as it agreed to acquire Mobile Phones Direct Limited (MPD), an online-only mobile phone retailer, but also said trading for the full year would be weighted more toward the second half.

The electricals retailer said it would acquire MPD for a total consideration of around £38.1mln in a move it said would significantly increase the scale and sophistication of its mobile offering, which is currently limited to handsets only.

READ: AO World says UK revenue up 8% in first-quarter, although core markets saw slower performance in June

AO added that the acquisition would provide access to “a large and important market” which was adjacent to its existing electricals offering and was well positioned to benefit from continued migration to online retail.

The purchase, expected to complete before 31 March 2019, would use £20.9mln in cash and around 13.1mln AO shares.

Steve Caunce, chief executive of AO, said MPD was “highly complementary to AO” and that by coming together the company would achieve “instant scale” and be well-placed for opportunities in the growing UK mobile phone market.

He added that with 5G mobile services expected to launch over the next two years, moving into the mobile market was “a logical next step”.

In an update on its current trading and prospects, AO said despite a “declining [major domestic appliances] market”, it was maintaining market share in the UK and expected its full-year results to be within expectations, albeit “more second-half weighted than previously anticipated”.

The firm reported that its group revenue for the six months to 30 September 2018 was up 9.9% year-on-year at £404.2mln, with its UK and EU revenues up 5.7% at £334.8mln and up 35.5% at £69.4mln respectively.

In a note to clients, analysts at City broker Shore Capital were less enthused by the purchase, saying they did not see how the acquisition could be earnings enhancing.

“On the one hand this small acquisition scales up the company in a complementary category but also complicates the group further” the broker added.

Shares were down 3.7% at 130p.

--Adds share price--

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Fri, 09 Nov 2018 08:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208902/ao-world-slips-as-it-acquires-mobile-phones-direct-but-says-full-year-trading-will-be-more-second-half-weighted-208902.html
<![CDATA[RNS press release - AO WORLD PLC TO ACQUIRE MOBILE PHONES DIRECT ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181109070002_13860966/ Fri, 09 Nov 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181109070002_13860966/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181031133640_13849807/ Wed, 31 Oct 2018 13:36:40 +0000 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181031133640_13849807/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181019070003_13844858/ Fri, 19 Oct 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181019070003_13844858/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181011132337_13844864/ Thu, 11 Oct 2018 13:23:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181011132337_13844864/ <![CDATA[RNS press release - Capital Markets Day ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181002070009_13844871/ Tue, 02 Oct 2018 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20181002070009_13844871/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180725090002_13730570/ Wed, 25 Jul 2018 09:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180725090002_13730570/ <![CDATA[RNS press release - Grant of options ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180720090001_13725582/ Fri, 20 Jul 2018 09:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180720090001_13725582/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719113027_13724350/ Thu, 19 Jul 2018 11:30:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719113027_13724350/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719093655_13724049/ Thu, 19 Jul 2018 09:36:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719093655_13724049/ <![CDATA[News - AO World says UK revenue up 8% in first-quarter, although core markets saw slower performance in June ]]> https://www.proactiveinvestors.co.uk/companies/news/201117/ao-world-says-uk-revenue-up-8-in-first-quarter-although-core-markets-saw-slower-performance-in-june-201117.html AO World PLC (LON:AO.) shares rose on Thursday after the online retailer said its UK revenue increased by 8% in the first-quarter, reflecting strong performances in April and May, although its core markets saw a slower performance in June, impacted by weaker consumer demand.

In a trading update to be delivered at today’s annual general meeting, the web-based domestic appliances retailer said it remained “on track to deliver its long-term strategic plan and the Board's expectations for the full year remain unchanged.”

READ: AO World posts double-digit sales growth for year just gone but remains “cautious” on outlook

The FTSE SmallCap group added: “Our Europe business has performed in line with our plan during the period, with continuing strong year-on-year revenue growth of 46.2% in constant currency (up 48.8% on a reported basis), and we continue our strategy of limited traditional marketing as planned.“

The company said its half year results for the six months ending 30 September 2018 will be announced on 20 November 2018.

In late morning trading, shares in AO World were 1.4% higher at 146.4p.

More than up with events, says ShoreCap

However, Shore Capital retained a ‘sell’ rating on the stock.

In a note to clients, the City broker’s analysts said: ”Overall while FY expectations are unchanged the trading performance from the UK division is disappointing given the soft comparatives that the company was cycling from Q1 last year. In terms of valuation AO trades on a forward one year EV/EBITDA multiple of 180x and on a 2020 multiple of 31x.”

They added: “Given our concerns about the scale of the losses across the European footprint, where the business remains sub-scale, we continue to believe that the current valuation is more than up with events and reiterate our SELL rating.”

 -- Adds share price, analyst comment --

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Thu, 19 Jul 2018 08:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201117/ao-world-says-uk-revenue-up-8-in-first-quarter-although-core-markets-saw-slower-performance-in-june-201117.html
<![CDATA[RNS press release - AGM and Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719070003_13723286/ Thu, 19 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180719070003_13723286/ <![CDATA[RNS press release - Annual Report & Accounts and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180620102750_13686935/ Wed, 20 Jun 2018 10:27:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/8287/LSE20180620102750_13686935/