White goods retailer AO World (LON:AO.) reported a pick-up in trading after a tough first quarter, boosting its shares.
AO World, which floated last year, said July trading had begun strongly and news of more housebuying activity and higher disposable incomes was encouraging.
Revenue growth in the UK business for the three months to June 30 was 6.5%, with orders up 13.9%.
AO.com revenue rose 11.2% year-on-year, despite particularly intense competition and general election uncertainty.
AO said German sales continued to rise satisfactorily and it expects to move into a new warehouse near Cologne in the first half of the next financial year.
Chairman Richard Rose said: "The business is on track with its long-term strategic progress."
Shares rose 5.3p to 125p.
Shore Capital said it was reviewing its 147p price target on the stock , saying the UK sales rise was below its 12% estimate. "We retain our 'hold' recommendation," the broker said.