Electronics online retailer AO is fighting a weak Pound on the British market. This week, the company secured another £50 million by issuing new shares.
Online retailer AO World raised 50 million pounds ($62 million) on Thursday to underpin its balance sheet as it navigates an uncertain outlook in Britain, its biggest market, and the impact of the lower pound on supplier prices.
Chief Executive Steve Caunce said the capital raising – the company’s first since it floated two years ago – would support continued expansion in its product range and European footprint, after strong revenue growth in its fiscal year ending on Friday.
The retailer added that the UK side of the business would continue to benefit from economies of scale and increased brand awareness as it expanded.
In Europe, revenue is expected to be £71m. AO consolidated its German operations during its first half and launched its audio-visual category in that market.
Chief executive Steve Caunce and founder John Roberts participated in the placing by buying 1.5 million shares each.
By Jochen Krisch and Marcel Weiß