TIDMAO.

RNS Number : 2380R

AO World plc

04 July 2022

4 July 2022

AO WORLD PLC

Response to Recent Press Reports

AO World plc ("AO" or the "Company"), a leading online electricals retailer, notes today's share price movement following press reports over the weekend. The Company's current financial performance and financial position remain in line with the Board's expectations and the guidance set out in its trading update on 29 April 2022.

AO confirms that it is aware that one of the third-party credit insurers who provide credit insurance to some of its suppliers rebased their cover in May 2022 with respect to AO, reflecting post-Covid sales levels. This was a reduction from the heightened levels that had been in place and required through the period of the pandemic. To date this rebased cover has had no effect on AO's liquidity position which remains in-line with the Board's expectations for FY23.

On 9 June 2022, AO announced the decision to close its German operations. Progress to date has been encouraging with total cash costs of closure now expected to be towards the lower end of the Company's original estimates of nil to GBP15m. The higher end of that range assumes the Company would be unable to exit certain asset leases, of which c. GBP10m of cash outflow would be due in future years.

AO continues to have full access to its GBP80m revolving credit facility, the term of which runs until April 2024. In addition, the Company continues to consider and implement a number of ongoing initiatives and further actions to strengthen its balance sheet while optimising its focus on profit and cash generation against the uncertain macroeconomic conditions in the UK and the continuing global supply chain challenges.

 
 
   Enquiries 
 
 AO World plc                                                                     Tel: +44 (0)7525 147 877 
 John Roberts, Founder and Chief                                                                 IR@AO.com 
  Executive 
 Mark Higgins, Group CFO 
 Cynthia Alers, Investor Relations Director 
 
 Powerscourt                                                                      Tel: +44 (0)20 7250 1446 
 Rob Greening                                                                     ao@powerscourt-group.com 
  Nick Hayns 
  Elizabeth Kittle 
 
 About AO 
  AO World plc, headquartered in Bolton and a constituent of 
  the FTSE Small Cap index, is a leading online electricals 
  retailer in the UK. Our strategy is to create value by offering 
  our customers brilliant customer service and making AO the 
  destination for everything they need, in the simplest and 
  easiest way, when buying electricals, including major and 
  small domestic appliances and a growing range of mobile phones, 
  AV, consumer electricals and laptops. 
 
  We deliver for our customers via our in-house logistics business 
  and carefully selected third parties. We also provide ancillary 
  services such as the installation of new products and recycling 
  of old products as well as offering product protection plans 
  and customer finance. AO Business serves the B2B market in 
  the UK, providing electricals and installation services at 
  scale. AO also has a majority equity stake in AO Recycling, 
  a WEEE processing facility, allowing AO to ensure its customers' 
  electronic waste is dealt with responsibly. 
 
 Cautionary statement 
  This announcement contains certain forward-looking statements 
  (including beliefs or opinions) with respect to the operations, 
  performance and financial condition of the Company and its 
  subsidiary undertakings. These statements are based on current 
  expectations or beliefs, as well as assumptions about future 
  events. By their nature, future events and circumstances can 
  cause results and developments to differ materially from those 
  anticipated. Except as is required by applicable laws, no 
  undertaking is given to update the forward-looking statements 
  contained in this document, whether as a result of new information, 
  future events or otherwise. 
 
   ENDS

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END

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(END) Dow Jones Newswires

July 04, 2022 08:53 ET (12:53 GMT)

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