Sunny

Sunny

max temp: 11°C

min temp: 5°C

Search

Consumer spending in the spotlight as AO World gets ready reports results

Results this week from AO World are expected to reflect the dent to consumer confidence in the past year. 
Picture: ANTONY KELLY

Results this week from AO World are expected to reflect the dent to consumer confidence in the past year. Picture: ANTONY KELLY

Archant Norfolk 2018

Electricals retailer AO World will unveil full-year results this week, with the figures expected to reflect tough trading in the UK.

The online group is forecast to see operating losses grow to £3.5 million in the year to March, which compares with a loss of £2.1 million in 2017.

Andrew Wade, analyst at broker Numis, said the numbers would indicate tough trading in the UK, where consumer confidence has plummeted.

“While disappointing to see the tough UK trading conditions impacting full year profits, it really should not come as any surprise – we note that there has been a string of weaker updates recently from home-related retailers – Carpetright, Topps, B&Q, Safestyle, ScS, DFS, Dunelm, Dixons,” he added.

Retailers across the board have been pummelled by rising costs and falling sales as the collapse in the pound following the Brexit vote has fed through, with firms selling big ticket items particularly affected.

Nevertheless, AO World expects to report a 14% increase in full-year sales to £796 million, slightly above the mid-point of market expectations.

The increase will come despite the tough home market and fewer promotions, with revenue buoyed by growth in Europe, which continues to pick up pace.

In the UK, turnover is forecast to increase 8% to £680 million following growth in the fourth quarter.

Mr Wade added: “The European operation is building clear momentum and the medium term targets are increasingly likely to be reached ahead of schedule.

“Despite the tough UK trading conditions, we continue to see a significant long-term growth runway; the shares have had an exceptional recent run, gaining circa 40% over the last few months, but we continue to see an opportunity as AO replicates its UK proposition in Europe.”

Shares in AO World have risen from 111p in January to around 163p today.

CITY DIARY

The following events are due to take place next week:

Monday, June 4

Construction PMI data released

Tuesday, June 5

Finals: AO World

Services PMI data released

Wednesday, June 6

Finals: Findel

Trading updates: WH Smith

AGM: GVC Holdings

Thursday, June 7

Finals: Auto Trader, CMC Markets, Mitie

AGMs: AA, Dignity, PageGroup

Friday, June 8

Finals: Fuller Smith & Turner

Search hundreds of local jobs at Jobs24

Two Suffolk engineering consultancy businesses have teamed up in a strategic alliance that expands the services they can offer to clients in the eastern region.

East of England Co-op Funeral Services has won the Outstanding Dementia Care Innovation category in the National Dementia Care Awards 2018.

TV naturalist Chris Packham has called on energy bosses to “work harder” to avoid building a massive substation in a “beautiful” Suffolk habitat.

Are plans to build a huge substation in an Area of Outstanding Natural Beauty setting a dangerous precedent? Sheena Grant speaks to campaigners fighting to protect the Suffolk Sandlings.

European freight specialists, Jordon, has been named as a finalist in the 2018 British International Freight Association Freight Service Awards.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24