AO World Shares Plunge 46% On Profit Warning

Online white goods retailer AO World has seen its share price drop by almost 50% in early trades, wiping £500m from its market value.

The plunge occurred after it released a statement lowering its financial forecast for the full-year ending March 31.

The company's profit warning said Black Friday resulted in "adverse effects".

Shares eased to around 30% down as noon approached.

The company said: "AO has found achieving expected sales growth to date in Q4 FY15 difficult and this has negatively affected adjusted (pre-tax earnings).

"It is now apparent that some of the revenue growth in the second half of FY14 and going into FY15 was due to the extra publicity surrounding the company at that time."

It now expects gross revenue to be around £472.5m and pre-tax profit to reach £16.5m.

The Bolton-based retailer said that November's Black Friday damaged longer-term sales growth.

It said the online frenzy "did not produce incremental sales but condensed sales into a shorter time period".

The company reassured investors its business plan was sound as it pursued expansion in Germany and other potential markets.

Chief executive John Roberts said: "We remain committed to our market-leading, customer-focused business model.

"Having delivered on all our strategic objectives through this financial year, we are confident of our ability to continue to deliver for our customers and to further drive the success of AO in the interest of all stakeholders."

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