AO World's (AO.) shares fell after it revealed adjusted cash profits for the year ending 31 March 2019 would be towards the lower end of expectations. Management expects the figure to land somewhere between a £2m profit and a £400,000 loss, with consensus currently sat at £700,000.
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That’s despite top-line acceleration of roughly 13 per cent – albeit reflective of slowing sales growth in the UK and helped by the recent acquisition of Mobile Phones Direct. That deal will incur exceptional costs, however, as will a lossmaking contract the group is unable to terminate in Germany.