REG - AO World plc - Response to Recent Press Reports

AO WorldAnnouncement

04/07/2022 14:00

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RNS Number : 2380R  AO World plc  04 July 2022

4 July 2022

 

AO WORLD PLC

Response to Recent Press Reports

AO World plc ("AO" or the "Company"), a leading online electricals retailer,
notes today's share price movement following press reports over the weekend.
The Company's current financial performance and financial position remain in
line with the Board's expectations and the guidance set out in its trading
update on 29 April 2022.

 

AO confirms that it is aware that one of the third-party credit insurers who
provide credit insurance to some of its suppliers rebased their cover in May
2022 with respect to AO, reflecting post-Covid sales levels.  This was a
reduction from the heightened levels that had been in place and required
through the period of the pandemic.  To date this rebased cover has had no
effect on AO's liquidity position which remains in-line with the Board's
expectations for FY23.

 

On 9 June 2022,  AO announced the decision to close its German operations.
Progress to date has been encouraging with total cash costs of closure now
expected to be towards the lower end of the Company's original estimates of
nil to £15m.  The higher end of that range assumes the Company would be
unable to exit certain asset leases, of which c. £10m of cash outflow would
be due in future years.

 

AO continues to have full access to its £80m revolving credit facility, the
term of which runs until April 2024.  In addition, the Company continues to
consider and implement a number of ongoing initiatives and further actions to
strengthen its balance sheet while optimising  its focus on profit and cash
generation against the uncertain macroeconomic conditions in the UK and the
continuing global supply chain challenges.

 Enquiries

 AO World plc                                    Tel: +44 (0)7525 147 877
 John Roberts, Founder and Chief Executive       IR@AO.com
 Mark Higgins, Group CFO
 Cynthia Alers, Investor Relations Director

 Powerscourt                                     Tel: +44 (0)20 7250 1446
 Rob Greening                                    ao@powerscourt-group.com (mailto:ao@powerscourt-group.com)

 Nick Hayns

 Elizabeth Kittle

 About AO

 AO World plc, headquartered in Bolton and a constituent of the FTSE Small
 Cap index, is a leading online electricals retailer in the UK.  Our strategy
 is to create value by offering our customers brilliant customer service and
 making AO the destination for everything they need, in the simplest and
 easiest way, when buying electricals,  including major and small domestic
 appliances and a growing range of mobile phones, AV, consumer electricals and
 laptops.

 We deliver for our customers via our in-house logistics business and carefully
 selected third parties. We also provide ancillary services such as the
 installation of new products and recycling of old products as well as offering
 product protection plans and customer finance.  AO Business serves the B2B
 market in the UK, providing electricals and installation services at scale.
 AO also has a majority equity stake in AO Recycling, a WEEE processing
 facility, allowing AO to ensure its customers' electronic waste is dealt with
 responsibly.

 Cautionary statement

 This announcement contains certain forward-looking statements (including
 beliefs or opinions) with respect to the operations, performance and financial
 condition of the Company and its subsidiary undertakings. These statements are
 based on current expectations or beliefs, as well as assumptions about future
 events. By their nature, future events and circumstances can cause results and
 developments to differ materially from those anticipated. Except as is
 required by applicable laws, no undertaking is given to update the
 forward-looking statements contained in this document, whether as a result of
 new information, future events or otherwise.

 ENDS

 

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