Online white goods retailer AO World on Tuesday applauded “green shoots” of profitable growth in the UK, but said it will exit its loss-making Netherlands arm.
The electricals firm will leave the Netherlands by March 2020. It has operated there for four years and the closure will cost it around £3 million.
The division currently makes losses of €6 million (£5.1 million) per year.
Boss and founder John Roberts said the decision is part of a “relentless focus to accelerate profitability in Europe”. It will help the company concentrate on turning around its German business.
Shares in AO World leapt 8.5p, or more than 14%, to 65.6p. They floated at 285p.
UK sales rose 20.3% to £402.7 million in the six months to September 30.
Total revenue jumped 16.3% to £470.1 million and pretax losses narrowed to £5.9 million from a £10.9 million loss.
The company has been grappling with a tough European market and Brexit stockpiling, but Roberts said the company has its “mojo back”.
He returned to the helm of AO World as chief executive in January after a two-year hiatus.
