UK 17:28 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
I said back in late February that I purchased a new laptop from Currys (CURY) and not its competitor AO World (AO.), a decision which also reflected my relative view on the two shares. As I am a boring person, I tend to prefer the profitable and cash generative market leader versus the name that is not. What to make then of AO World’s trading update this morning?
I was a bit surprised to read from AO World (AO.) today that “the Board now expects Adjusted EBITDA to be in a range of £30m to £40m for the full year, ahead of our previous guidance”. Congratulations to it, with (apparently) “the actions taken by the business to reduce costs and improve margins” helping push the shares up by 5% today as I write.
I think it is fair to say there are not many fans of AO World (AO.) shares on this website, as a number of us (including myself) have written pieces highlighting the reasons to aggressively avoid shares in a company which struggles to make a profit and generate free cash. So, whilst the shares are still down over 80% since its 2014 IPO, why after another set of shabby numbers this morning are they up over 10% today as I write?
Having insisted that it was on track to hit forecasts (which included an improved cash position), AO World (AO.) has today announced a £40 million institutional book build and Primary Bid Offer, at 43p – last night, the shares were 47p. So, should you consider an investment? Er…no.
Yesterday, there were press reports concerning third-party credit insurers: they had tightened their terms, which would lead to suppliers demanding cash sooner from AO World (AO.). Today, the company served to clarify the position, yet seems to have calmed few nerves, if any at all.
It was about six weeks ago when I last called AO World (AO.) “comedy” and the reasons for not investing into (as per its website this morning) the ‘largest online-only white goods and electricals retailer in the UK…we also operate in Germany’ continue. AO…let’s continue not to invest (despite the near 71% fall of its share price over the last year).
Another busy Friday on the markets. It is all good fun especially with regard to my holdings in Reckitt (RKT) and SIG (SHI) shares both of which produced positive updates. So a quick appraisal of the good news first…and then I will move onto the continued comedy at AO World (AO.).
It is another manic Thursday with plenty of global market news and volatility to enjoy. Obviously I completely love it. In terms of the UK there are about ten different names I could write about today, but I will just leave it to four. After all yesterday I loved-up easyJet (EZJ) already and today’s first quarter numbers hit nearly 12 million passengers, nearly four times the level a year ago.
Previously writing on online electrical retailer AO World (AO.), at the start of last month with the shares at 170p I concluded hopefully my prior warnings were heeded and still a sell with the valuation still looking much too high even without the doubt that measures to help mitigate logistics challenges will be sufficient to enable more heavily weighted than usual second half profits. The shares last closed at 124p... and today half-year results and they currently back around 100p! So why is it again ‘A..O… Oh No!’?
