AO World enjoys 8% shares boost
Online electrical appliance retailer AO World sparked a shares surge after upping its full-year outlook thanks to stronger-than-expected sales.
The group saw shares race 8% higher as it said both sales and earnings beat its forecasts in the final three months of its year to the end of March.
AO World is now expecting full-year underlying earnings to rise to about £17m, which is higher than the £16m pencilled in by the market.
The Bolton-based group is also set for another double-digit hike in annual UK sales, saying it is in line for web revenues to grow by about 27% and overall UK turnover to lift by around 18.5%. AO World said it continued to gain market share, which comes at the expense of rivals in a notoriously difficult sector. The consumer electricals market is highly competitive in the UK and industry experts said conditions have been particularly challenging in recent weeks.
Jefferies analysts said AO World delivered a "robust close to the year" but added: "As always, we shouldn't try to make too much of one quarter."
Shore Capital said AO World's performance was "encouraging".