AO World stockpiling £15m goods ahead of Brexit

428
AO World
// AO World is stockpiling £15m worth of goods in case of a no-deal Brexit
// It warned underlying earnings could face a loss of £400,000 for the full year

AO World has revealed it is stockpiling products ahead of Brexit amid warnings of underlying earnings for its full year.

The online electronics retailer recently saw the reappointment of founder John Roberts as chief executive and had said it was stockpiling goods worth £15 million as it anticipates a possible no-deal Brexit.

“This will help ensure we can continue to deliver our market-leading proposition to our customers,” the retailer said.

AO World is currently facing an extra £2.5 million in costs from a management reshuffle since Roberts returned to the company.

It is also anticipating its underlying earnings to come in at a loss of £400,000.

However, it added that results were in line with city expectations.

Meanwhile, AO World shares declined by three per cent.

In its full-year trading statement, AO World forecasted a 9.8 per cent rise in UK revenues.

Overall revenues are set to rise by 13 per cent.

“Over the last eight weeks we have created a mindset shift from the numbers delivered in full-year 19; we are setting about realising our opportunities with pace and energy,” Roberts said.

Click here to sign up to Retail Gazette‘s free daily email newsletter