AO World plc (lon:ao)
AO (Lets Go) Has It Missed The Boat?

AO World plc Financials

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Title: AO (Lets Go) Has It Missed The Boat?
Company: AO - AO World plc
Share Price Then: 117p
Author: Ian Smith
Date: Thu 13 Jul 2017
Comments: AO Word is an on line electrical retailer who has spent sufficiently on advertising that even I as a consumber have heard of them.

However for the year ending March 2017 they reported an increased loss of £12m up from £10m the previous year,

This might have been fine if they were a newish company as losses are to be expected when set up costs are huge, but they have been around since 2000, although they didn't float until 2014.

It is true that a lot of the losses seem to be coming from European expansion rather than the UK bussiness they are still losses!

If all was going to plan it seems unlikely that the share placing in March 2017 would have been necessary, increasing the number of shares in circulation by about 9% and raising about £50m at 132p per share.

Note that the current share price is below this issue price.

As far as I can see it is pretty much a "Me Too" brand as far as consumers are concerned, this may be a problem as "bricks and mortar" retailers are getting closer to internet prices.

Why go to an out of town shoping centre to examine a product and then order from AO if the shop is offereing the same price?

It's all very well talking about Our Culture and great reviews on Trust Pilot in year end reports rather than announcing a dividend, but I would be worried that the business is one of those who having raised a fortune at the time of the IPO has forgotten that it is supposed to be making a profit.
Read Count: 17/14

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