AO World
Ticker: AO. Exchange: LSE ao.com/

Founded in 2000 by CEO John Roberts, AO World has grown to be a major online retailer of major domestic appliances (“MDA”) such as washing machines and fridges with 16% market share. The company also sells a wide variety of small domestic appliances (“SDA”), televisions (“AV”), mobile phones, consumer electricals and laptops. With a focus on brilliant service and two-person delivery, installation and recycling, the group has received over 500,000 Trustpilot reviews with an impressively high average score of 4.8/5. The group has also invested in its own recycling centre (“WEEE processing facility”), ensuring customers’ electronic waste is dealt with responsibly.

Synergistic acquisition of musicMagpie

AO has announced a recommended cash offer for consumer technology re-commerce leader musicMagpie. We believe this is an exciting opportunity for AO, given musicMagpie’s expertise and trusted brand in consumer technology re-commerce, with over 9m customer contacts.

AO is offering 9.07p per share, equating to £10m cash and a c. £24m Enterprise Value which, in our view, appears good value at c. 0.2x EV/LTM Revenues and 3.4x EV/LTM EBITDA. We do not at this stage forecast the consolidated profit impact of musicMagpie.

 

 
Download as a PDF file
26810392321 - ao-world
Return to AO World

Register to be first

Get research on the companies that interest you straight to your inbox

Register For Updates