AO World bullish despite reopening of rival stores

A WAVE of momentum that allowed progress on the delivery of our longONLINE electricals retailer AO builders’ merchants Travis Perkins to er-term strategic plans.” World has said it expects to deliver thrive in the second half of last year The results exclude Wickes, a DIY bumper profits over the year ahead has continued into 2021, despite retailer which will no longer be part despite the reopening of high street Covid-19 restrictions. of Travis Perkins by the end of the rivals, as it revealed an 88% surge in

The business saw its like-for-like month. Wickes total sales rose 18.9% UK sales. sales rise by 17.4% in the opening during the period. The impressive performance three months of the year, as it was The demerger of the two businessover its final quarter helped group propelled by 42% growth at Toolstaes is set to happen on April 28 with revenues jump by 62% to £1.66 biltion. separate shares in Wickes being listlion in the year to March 31 as the

Total sales growth for the business ed on the London market. pandemic saw it gain more than was 6.8% compared to the same Mr Roberts said: “I am also two million new customers. period last year. pleased to report that the Wickes It now expects annual underlying

Companies in the space have bendemerger process remains on schedearnings to surge to between £63 efitted from increased house buying ule to be completed at the end of million and £72 million, up from in recent months, after the GovernApril, leaving the business a simpli£19.6 million the previous year, ment paused stamp duty on some fied and trade focused group. despite extra costs relating to the deals. Businesses are currently benefitpandemic.

“The group has enjoyed an ing from the usual year-on-year And AO World founder and chief encouraging start to the year with comparison. Company results are executive John Roberts insisted the robust like-for-like sales growth normally compared to the equivacompany’s rapid growth will conacross our businesses, underpinned lent months a year ago. tinue in spite of increasing compeby strong demand in the RMI (repair, At the moment, those months, tition from bricks-and-mortar maintenance and improvements) between January and March last rivals after the reopening of nonmarket,” said chief executive Nick year, include the initial impacts of essential shops this week.

Roberts. the Covid-19 pandemic on the econHe revealed that, in the past

“We are encouraged by the robustomy. But when comparing Travis’s week, AO’s sales have risen by 25%, ness of the RMI market and the conresults to the year before, revenue which comes on top of soaring tinued recovery in our other key end like-for-like sales are still up, by sales from a year earlier and as markets. nearly 12%. shops have reopened across the

“However, at this early stage in the UK.However,Traviswarnedofsignifiyear, our expectations remain cant price increases in timber, copHe said: “I believe that these unchanged as we continue to make per, steel and other raw materials. market dynamics will stick and, whilst there is inevitable uncertainty, the direction of travel is firmly with AO and the business model we have spent more than 20 years building.

“I expect that we will continue to be a double-digit growth business in the year ahead, even now as we lap the tough comparatives from last year with physical stores open.”

He told the PA news agency that the switch to online is set to be permanent even after the pandemic.

“When you find a better way of doing something, why would you go back to the old way that wasn’t as good?” he said.

“There are some things where physical retail provides a good experience – I don’t think electricals is one of them.”

The group’s German operation also saw strong trading, with fullyear revenues up by 77%, and is set to deliver a full-year profit after finally clawing its way out of the red in the third quarter – a milestone for the division, which has been loss-making since its launch in 2014.

AO World said Government coronavirus support has either been repaid or not claimed.