AO investors appeased as revenues rise

iNVESTORS in AO World breathed a sigh of relief yesterday when the firm finally reported a much-needed increase in sales.

The online washing machine and fridge seller, which issued a profits warning in February, said uK revenues in the three months to June were 6.5pc higher than a year earlier.

Total sales were up 11.2pc – although this was nothing like as strong as the 30pc growth in the same period last year.

Shares in the company rose 3.8p to 123.5p having been at an all-time low of 119.7p – well below the float price in February last year of 285p.

‘We expected sales growth in the first quarter of this financial year to be muted,’ said chairman Richard Rose. He said AO has suffered from ‘intense’ competition and ‘uncertainty surrounding the general election’ in the uK – but added that the company enjoyed ‘a strong start to trading in July’.

Mike van Dulken, head of research at spreadbetting firm Accendo Markets, said: ‘While expansion into Germany is moving ahead, shareholders are likely buying more into management’s declaration of faith in uK consumer confidence and demand for electrical and white goods.’

The relief rally and a squeeze on short sellers of the stock pushed the shares higher. According to data from investment manager Castellain Capital short positions have steadily risen over the past 15 months to between 4pc and 5pc of its shares.

The company also suffered an embarrassing vote against its chairman at its annual general meeting in Bolton yesterday.

Nearly 10pc of shareholders failed to back the re-election of Rose who was criticised earlier this year when he sold nearly 90pc of his shares ahead of the February profit warning.

Rose has held a number of chairmanships i ncluding at retailer Whittard of Chelsea and he became chairman of scandal hit insurance firm Quindell in January.

More than 12pc at the AGM voted against the election of non-executive director Chris Hopkinson due to concerns about his independence.