AO World Share Chat (AO.)

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Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
AO World	LSE:AO.	London	Ordinary Share	GB00BJTNFH41	ORD 0.25P

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-1.00p	-0.77%	128.60p	128.60p	129.60p	136.60p	126.00p	135.60p	51,402	16:35:04

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
General Retailers	796.8	-13.5	-2.9	-	590.00

AO World Share Discussion Threads

Showing 526 to 550 of 550 messages

Chat Pages: 22 21 20 19 18 17 16 15 14 13 12 11 Older

Date	Subject	Author	Discuss
11/1/2019 09:01	AO. is priced as a growth company yet it's growth is stalling and it is still not making a profit. I fail to see why the market attaches the high valuation of £586m. These figures says it all:- Q3 2017 Q3 2018 Growth Reduction Group Revenue Increase 16.1% 8.8% 45.3% UK Revenue Increase 11.4% 4.4% 58.7% Europe Revenue Increase 58.4% 31.3% 46.4% These are nothing to be proud of when your overheads eats all your profits. Especially when you have the longest Black Friday, in November, that will eat into your margin and produce your busiest month!	countless	Read Full Thread Reply
08/1/2019 00:56	Update this Friday.	tim 3	Read Full Thread Reply
24/11/2018 11:32	From this weeks Investor Chronical SELL Tip Update: Sell at 116p Tip style SELL Risk rating HIGH Timescale MEDIUM TERM Our previous tip We said SELL at 136p on 18 Oct 2018 Tip performance to date -15% By Harriet Russell Shares in online white goods and electrical retailer AO World (AO.) took a battering on the release of these half-year numbers as the company warned of “a declining medium domestic appliance (MDA) market” in the UK. As such, and despite a 5.7 per cent improvement in total UK revenues to £335m, cash profits on home turf fell back to £6.9m (from £7.4m in HY2018). While AO is trying to reduce its reliance on the MDA market and, encouragingly, a higher proportion of sales are now derived from new product categories, this has still had a dilutive effect on gross margins. AO.:LSE AO World PLC 1mth Today change 1.65% Price (GBP) 123.00 Across Europe, sales growth was hampered in the second quarter by legislative changes in Germany relating to driver shift patterns, but still rose by 36 per cent to £69.4m, while losses reduced from £13.7m to £12.3m thanks to improved product margins and better management of logistics and overheads. Analysts at Numis have cut cash profit forecasts for FY2020 from £17m to £10m in light of ongoing pressure in the medium domestic appliance market. But the broker still expects a maiden cash profit of £1.4m for the year ending March 2019, compared with a loss of £3.4m in FY2018. IC View News of a proposed acquisition of Mobile Phones Direct hasn’t gone down well with investors either. And while a lack of earnings makes a traditional price/earnings (P/E) valuation impossible, Numis’s new FY2020 cash profit forecast leaves the shares trading on an enterprise value (EV)/forecast 2020 cash profit multiple of 49 – nearly twice the value of our recent sell call (136p, 18 Oct 2018). Sell. Last IC View: Sell, 136p, 18 Oct 2018	countless	Read Full Thread Reply
22/11/2018 09:28	and from Motley Fool ..... AO let’s go-ish AO World today trumpeted continued revenue growth against “a continuingly tough macro trading environment in [the] UK and Europe.” It reported a 9.9% increase in total revenue to £404m for the six months ended 30 September. The overall UK major domestic appliances (MDA) market declined but the company said it takes “encouragement that we are at least maintaining market share in this core category in the UK.” Revenue growth of 5.7% in the UK to £335m came from new non-MDA categories, like audio visual and computing, so you can see the thinking behind the company’s recently announced proposed acquisition of Mobile Phones Direct. In Europe, revenue increased 35% to £69m. AO’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was a loss of £5.4m at the group level. The UK posted a positive £6.9m (down from £7.4m in the same period last year), while Europe narrowed its loss to £12.3m from £13.7m. The group cash outflow for the period was £14.9m, leaving it with net cash of £23.9m. Premium rating unmerited? AO appears to be well managed, but as a low-margin business I’ve always been bearish, seeing it as grossly overvalued. That the company says its newer categories are dilutive to gross margin doesn’t help persuade me that the fall in its share price has made the valuation more attractive. I can see downgrades to analysts’ forecasts for fiscal 2019 and 2020 after today’s numbers, which makes the existing 92 times forecast 2020 earnings even less attractive. As such, I can’t see the AO share price returning to its former highs any time soon. Indeed, I continue to see it as a stock to avoid.	countless	Read Full Thread Reply
22/11/2018 09:27	IC TIP UPDATES: Interim results from online white goods retailer AO World (AO.) were enough to send the shares down 9 per cent in early trading - something we anticipated with our recent sell call on the shares. The group blamed a declining appliances market in the UK as well as intense competition for widening losses The reported cash profit loss of £5.4m looks paltry compared to analysts’ expectations for £4m in profit by the year-end, even if numbers are expected to be second-half weighted. Broker Peel Hunt called the figures “disappointing”. We remain sellers.	countless	Read Full Thread Reply
21/11/2018 08:37	The sell from pre-IPO was likely "anything online" not just appliances. The next Amazon was it's aim.It was new, not hamstrung with legacy issues or bricks and mortar like competitors, and it benefited from Comet disappearing.That's why it holds up, because there's a hope that as it branches out it might just get it right.Meanwhile, it's sending white goods out. And losing money. But it refuses to drop below a quid, so someone likes the story still.To me, it already looks old hat.	greatwhitefunkmaster	Read Full Thread Reply
20/11/2018 21:50	If it really hits the fan for tech then shares like this could fall massively with no dividend or profits to support them. Its basically held up by thin air. IMO	tim 3	Read Full Thread Reply
20/11/2018 21:21	Used to work for AO. (trading as appliances online)in 05/06 and it was very close to running out of cash and going out of business. Still surprising its listed and still going although still burning cash and poor operating %. Seems overvalued even just on UK operations looks like further years of losses here.	1861andy	Read Full Thread Reply
20/11/2018 14:43	Agree. If this was not an internet company then the shares would probably be in single figures imo. Where will the profits come from? I also agree about service, people will go with who ever is cheapest and gives fast delivery, they don't really think about service when purchasing although they may do when something goes wrong!	tim 3	Read Full Thread Reply
20/11/2018 10:31	AO World (LON:AO.) Share price: 112.2p (down 10.4% today, at 09:20) No. shares: 458.8m Market cap: £514.8m Interim results AO World calls itself "a leading European online electrical retailer", but it's really a UK company, with a struggling, loss-making, sub-scale European operation too. Looking at these numbers, I think it's probably only a matter of time before they have to face reality and close down the European operations. Revenue growth in H1 is only +9.9% - that's not enough to justify the sky-high rating. It's loss-making at the adjusted EBITDA level - due to heavy losses in mainland Europe of -£12.3m on £69.4m revenues - an awful result. UK is EBITDA profitable at £6.9m. Outlook - the dreaded H2-wighting; Our peak trading period began on 9 November with the launch of our biggest ever Black Friday and I remain confident of achieving long-term sustainable growth across the Group. We expect full year results to fall within the range of Board expectations, albeit more second half weighted than previously anticipated." My opinion - I think this share is worth 20p, tops. Why it is still over 100p, I have no idea. It's just not a very good business model - low margin box-shifting, in a highly competitive market. Do customers really care about service levels, for one-off purchases? I think most people just shop around for the best price. Bottom line is, it doesn't make any money, and isn't growing very fast. So what's the point? This looks a good potential shorting opportunity, in my view. It amazes me how the valuation of this company has remained so high, given lacklustre performance, for so long. We're now in much more sceptical market conditions, so perhaps that might be about to change? From Stockopedia - Written by Paul Scott on 20 Nov	countless	Read Full Thread Reply
20/11/2018 08:23	Another year of losses and they say they will only break even in 2021 - hopefully! This jumped off the page - smacks of happy to present figures to best suit us! Our operating loss for the period was GBP11.7m, with losses decreasing by GBP0.3m from GBP12.0m in the prior period including the GBP1.4m of MPD acquisition costs recognised in the period However, when reviewing profitability, the Board of Directors use an adjusted measure of EBITDA in order to give a meaningful year on year comparison and it is a performance criteria for the purposes of both the Executive management's annual bonus and LTIP awards and, more recently, the single incentive award. Whilst we recognise that the measure is an alternative (non Generally Accepted Account Practice ("non-GAAP")) performance measure which is also not defined within IFRS, this measure is important and should be considered alongside the IFRS measures. Group Adjusted EBITDA losses were GBP5.4m (2017: GBP6.3m) after allowing for GBP12.3m of Europe Adjusted EBITDA losses (2017: GBP13.7m loss).	countless	Read Full Thread Reply
15/11/2018 10:16	At current valuation AO. will be demoted from the FTSE 250 on the quarterly review due 5 December 2018 with changes to take effect from 24 December.	countless	Read Full Thread Reply
12/11/2018 14:27	Https://www.dailymail.co.uk/money/news/article-6375791/Enough-high-street-stores-plan-ditch-Black-Friday-damaging-effects.html AO. cannot afford the drop in profit from this type of sale but will go for it nonetheless.	countless	Read Full Thread Reply
12/11/2018 09:21	I think we could have another year of losses, which will follow the trend here. Last year’s loss amounted to some £16.2m; up from £12m in 2016/17. This cash burning company, which raised £50m in April 2017, is getting through its cash fast. AO. has to cover its losses and has just agreed to spend £20.9m on Mobile Direct. On the cash front last accounts show cash £52.9m. Debt £14.6m so net cash £38.3m – £20.9m = £17.4m. If this year’s loss is the same as last AO will be tapping the market again. Shareholders will already be diluted by some 2.8% for the Mobile Direct purchase next year. Growth has also slowed. Last year’s UK revenue increase by 8% but Q1 and Q2 this year’s it’s down to 5.7%. So growth in its home market is slowing. Meanwhile their overseas side is also slowing from 54.8% last year to 46.2% in Q1 and Q2. The competition for selling mobile phones is worse than trying to sell white goods! It feels like they have made their company more complicated with this purchase. I also think their costs will go up. With some 2800 employees they will feel increased pressure from the 4.8% increase in national minimum wage. Their overheads have continually wiped out their profits since they came to market – something tells me this pattern will not change anytime soon and that they will dilute their shareholders again. With an update on 20 November we could see this fall futher. When the tide turns I will be glad to have a short on this one.	countless	Read Full Thread Reply
09/11/2018 17:28	Yes what a time to be expanding in the mobile market, its incredibly competitive with margins reducing rapidly .....actually that should suit their business model!!	tim 3	Read Full Thread Reply
09/11/2018 12:22	EC_ Yes you are absolutely correct - I should have said negative p/e (A theoretical calcualtion!!!!!!!!!!!!!!!!!!!!!!!!!!)	pugugly	Read Full Thread Reply
09/11/2018 11:58	PUGUGLY, "Current p/e far too high (imo)" They need e before they even have a p/e. Current market cap is far too high, imo. I remain happily short.	effortless cool	Read Full Thread Reply
09/11/2018 10:50	further and deeper involvement in mobile phones - Interessting but a very very competitive market- Current p/e far too high (imo) Watching and waiting.	pugugly	Read Full Thread Reply
12/9/2018 07:44	I acquired some AO. yesterday - I had a very good experience purchasing from them recently and think they'll push the Currys and others off the high street eventually. It's the way retail is going.	value king	Read Full Thread Reply
14/6/2018 09:15	Thanks, walbrook, interesting analysis.	effortless cool	Read Full Thread Reply
14/6/2018 08:40	I know its late, but here are my views and opinions on what’s going on at AO World: http://bit.ly/2JA0dJL If you want a background knowledge of AO World business strategy and their aspirations, click: http://bit.ly/2JAaSV8	walbrock82	Read Full Thread Reply
25/4/2018 09:21	So are quite a few recently Effortless -- which is what piqued my interest.	bones30	Read Full Thread Reply
25/4/2018 09:15	I don't see a bull case. It's a business losing money selling commodity products. Gross margin is going nowhere. All three of their administrative expense categories show reverse economies of scale (the more revenues grow, the more the expenses grow as a percentage of revenue). Tangible assets are minimal. In my view, it is close to worthless. However, I'm down on my short!	effortless cool	Read Full Thread Reply
25/4/2018 07:59	Can someone please help me with the bull case here? Looks a compelling short to me. How is the share price hovering like bricks don't?	bones30	Read Full Thread Reply
06/4/2018 14:13	Seems the market agrees with Rathean today!	effortless cool	Read Full Thread Reply

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