The UK online white goods retail sensation, ao.com, is the latest hot stock market floatation. Early trading puts its valuation in the region of £1.6bn, so we thought we better try and work out what exactly it does. After all, no one would pay six times sales for a washing machine shop, would they?
From the about us section:
We operate a sleek and well-refined process via our three strands. With over 4.5 million customers, we live and breathe excellence from the very first phone call, to the moment we power up a customer’s brand new appliance in their own home.
Not delivering your brand new appliance to someone else’s home is a start, we guess. But about those strands, the notice of intention to float provides a bit more clarity:
In 2012, AO had a 24 per cent share of the online market for major domestic appliances in the United Kingdom, of which 19 per cent represented AO website sales, and 5 per cent represented third-party branded website sales according to the OC&C Report.