Our UK business continued to grow: ao.com revenue increased by 10.3% year on year and our overall UK revenue by 8.9%, against tough comparators from the same period last year.
In Europe revenue for the period was up 28.4% year on year, on a constant currency basis, reflecting a period of focus on building our logistics capabilities, capacity and a solid base for the business.
Overall Group Revenue was up 12.3% for the quarter, year on year.
AO expects to make around £700 million in 2016.
Here are some highlights form the Capital Markets Day presentation (PDF):
AO is, given the demanding product category they’re in, successfully expanding from the UK to Germany and Netherlands. You can see the next European markets in the first slide above. And, as we mentioned, AO could follow BuildDirect’s role model and roll out a logistics service for bulky products (like furniture for example) in the UK, Netherlands and Germany.
But the road ahead looks rocky. Brexit looms large above AO, making the company give a cautious outlook for the final quarter of 2016/17. And the company has just lost its founder, more or less:
AO CEO and founder John Roberts stepped down and will be replaced by the COO, Steve Caunce. Roberts will remain with the company as as an executive on the board, but in a very vaguely defined role, “focussing on both innovation and inspiring staff”.