AO World, an online electrical retailer, signaled a strong start to the new fiscal year after nearly tripling its annual profit due to strong demand for office products and home appliances following the COVID-19 pandemic.
The company’s shares more than quadrupled their value in 2020 due to the benefits of British workers working remotely during the global crisis.
It reported that its adjusted core profit increased to 64 million pounds ($88.4million) in the year ended March 31, from 22 million pounds in the previous year. However, it also confirmed that group sales rose 62%.
A British company that sells printers, washing machines, and mobile phones said Thursday that it had begun the new financial year “well” and is “prudently optimistic” it will achieve double-digit growth.
It stated that it hoped to double its size over the next five years and to be active in five countries, which includes Britain and Germany.
John Roberts, founder, and chief executive officer of the company, stated that “we firmly believe” that once customers have a better way to purchase electrical products, they will not return to their old shopping habits.
Technology demand has skyrocketed due to the pandemic that forced people to stay at home to enjoy home entertainment and gaming. Analysts predict that gadget demand will remain steady if there is a shift to a mixture of home and office work.
It stated that the London-listed company plans to spend more on marketing to tap this demand. The company has set aside 30,000,000 pounds for this year and another 30,000,000 pounds to upgrade its support systems.