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AO World, the online retailer of household appliances, has announced a £50m share placing.

The company, whose shares have tumbled more than 60 per cent from the peak after they floated in 2014, said the money would be used to fund the company’s expansion.

“The proceeds will support our continued growth and increasing scale as we pursue our proven strategy” said chief executive Steve Caunce.

The new shares will amount to 10 per cent of the existing shares, the company said.

Separately the company released a trading update in which it said full-year revenue for the year to March 31 was expected to be up 17 per cent on a year earlier to £700m. It said UK profits would “largely [be] reinvested” in its European operations.

Numis and Jefferies are acting as bookrunners and Rothschild is advising AO on the placement.

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