Shares in online domestic appliance retailer AO have risen 12% this morning after announcing it expects a sharp rise in UK revenue growth.
The Bolton-based company said both revenues and operating profit from its UK business grew ahead of expectations in the fourth quarter, to March 31st.
It is now expecting full year UK revenues to grow by about 18.5% and adjusted EBITDA of around £17m.
AO began trading in the Netherlands earlier this month after a successful launch in Germany.
On its European business, the company said: “We expect revenue in our European segment to be within the current range of expectations. Our European adjusted EBITDA for the full year will be slightly better than expected due to our focus on driving efficiencies.
“We expect such focus to continue until we move in to our new regional distribution centre in Bergheim later in the year, when we will look to accelerate volume growth.”
AO World floated on the stock exchange last February, valued at a market capitalisation of £1.2bn.
Its share price stood at 185.50p this morning, still well down on its 285p flotation price.