WASHING MACHINE SELLER SLUMPS AS LOSSES HIT £7M

SHARES in AO World tumbled almost 11pc yesterday after its UK business was hurt by rising prices and a turbulent housing market.

The online-only electrical retailer’s losses deepened to £7m for the year to March 31, down from a loss of £6.7m a year earlier. Revenue rose 17pc to £701m, but it came after shelling out on expansion into the Netherlands and Germany.

AO World raised £50m to fund the expansion, and revenue in this division grew by 50pc to £71.5m. But Steve Caunce, chief executive, said a slower housing market in the UK meant fewer families were opting to splash out on a washing machine or television.

He also warned the first quarter of this year would be ‘significantly’ slower than 2016. Shares fell 10.7pc or 15.5p to 129.5p.

Neil Wilson, market analyst at ETX Capital, said: ‘European expansion is costing money. AO World may also not be able to rely on the UK to prop up the business as consumer spending is showing signs of flagging, while inflation rises faster than wages.’