StockMarketWire.com - Online electrical retailer AO World swung to a profit as government-imposed lockdown measures spurred online shopping.

For the year ended 31 March 2020, the company reported a pre-tax profit of £1.5m, compared with a loss of £20.2m on-year, while revenue increased 15.9% to £1.05bn.

In the UK, turnover increased 20.3% to £901.6m from £749.3m.

The company said it had experienced strong demand and made significant market-share gains across many of its key categories from the start of lockdown on 23 March.

Looking ahead, it warned that a weaker economic backdrop could weigh on growth.

'A significant fall in GDP in both the UK and Germany and the level of UK housing transactions, to which our performance is in part linked, may also decline as a result of restrictions in the mortgage market,' AO World said.

Still, AO World said it still expected to achieve positive operating earnings in Germany on revenues of about €250m. Story provided by StockMarketWire.com