Online white goods retailer AO World (LON:AO.) tumbled as European expansion and lower UK profits pushed it into the red.
Markets had expected the losses from the start of operations in Germany, but a decline in the profits in the UK reflected higher promotions and marketing to boost brand recognition.
John Roberts, chairman, said progress had been good across the group with UK revenues almost 24% higher and the heavy spending increasing people's awareness.
Momentum was also building in Germany with revenues in the period at €21.7mln, but the run rate was almost triple that based on September’s sales.
AO said it was looking at The Netherlands to expand next with spring the scheduled start date.
Overall sales were 22% higher at £264mln in the six months to September, while the group slipped from a profit of £0.9mln to losses of £8.9mln.
Broker Jefferies is one of the company’s fans and retained a buy rating though it said it was “disappointing” there was no guidance with the update.
Shares fell 14p to 139.5p.