AO World pulls plug on Dutch business but cheers UK growth

Online white goods retailer AO World on Tuesday applauded “green shoots” of profitable growth in the UK, but said it will exit its loss-making Netherlands arm.

The electricals firm will leave the Netherlands by March 2020. It has operated there for four years and the closure will cost it around £3 million.

The division currently makes losses of €6 million (£5.1 million) per year.

Boss and founder John Roberts said the decision is part of a “relentless focus to accelerate profitability in Europe”. It will help the company concentrate on turning around its German business.

Shares in AO World leapt 8.5p, or more than 14%, to 65.6p. They floated at 285p.

UK sales rose 20.3% to £402.7 million in the six months to September 30.

Total revenue jumped 16.3% to £470.1 million and pretax losses narrowed to £5.9 million from a £10.9 million loss.

The company has been grappling with a tough European market and Brexit stockpiling, but Roberts said the company has its “mojo back”.

He returned to the helm of AO World as chief executive in January after a two-year hiatus.