Business
Conclusion of Strategic Review of German Business
Conclusion of Strategic Review of German Business.
About this update from Ao World Plc
[{"type":"text","content":"\n \n \n This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (\"MAR\"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n \n \n \n \n \n \n \n \n \n \n \n 9 June 2022\n \n \n \n \n \n \n \n \n \n AO WORLD PLC\n \n \n \n \n Conclusion of Strategic Review of the German business\n \n \n \n \n \n \n AO World plc (\"the Group\" or \"AO\"), a leading online electricals retailer, today provides the following business update. \n \n \n On 27 January 2022, the Group announced a strategic review of its German business as a result of material changes to the local trading environment which have significantly impacted the business over the past year. These included an intensifying competitive landscape, as customers have returned to pre-pandemic levels of online shopping, a substantial increase in digital marketing costs, and a constrained supply chain. \n \n \n Having evaluated a range of strategic options during the review process, the Board has decided that closure of the German business is the best course of action. This decision was based on the continuing deterioration in the outlook for the German business, as well as the Board's responsibilities to shareholders and other stakeholders.\n The business will continue to trade for a brief period to facilitate a structured and orderly closure for its customers, suppliers and employees\n . The Board wishes to thank all the employees in AO's German business for their hard work and dedication since we launched the business in 2014.\n \n \n \n \n \n The German business currently represents c. 10% of AO's total Group revenue. It is expected that its closure will incur cash costs of between nil and £15m. \n \n \n \n \n \n AO will now increase its focus on its leading online position in the UK electricals market and optimising the Group's profit and cash generation potential. \n Given the strength and scale of the AO business model, its market-leadi...