Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Slower than expected UK sales growth, pressure on profit margins and guidance for no change in trading patterns near-term has led stockbroker Numis to dramatically slash forecasts for fridges-to-washing machines seller AO World (AO.).
It has reduced EBITDA (earnings before interest, tax, depreciation and amortisation) forecasts for the financial year to March 2018 by 87.5% to a mere £2m.
‘While we have no reliable industry data to corroborate this, management is firmly of the view the softer trading performance is being driven by a significantly tougher white goods market,’ says Numis analyst Andrew Wade.
This article is provided by Shares Magazine. Shares publishes information and ideas which are of interest to investors. It does not provide advice in relation to investments or any other financial matters and does not guarantee the accuracy or completeness of the information in this article.
Investors acting on the information in this article do so at their own risk and AJ Bell Media Limited and its staff do not accept liability for losses suffered by investors as a result of their investment decisions. Shares is published by AJ Bell Media Limited part of AJ Bell.