AO has seen its losses widen after the cost-of-living crisis led to reduced consumer demand in the electricals market.

In the six months to 30 September, AO’s revenue declined to £546 million from £661 million at the same time last year while its loss increased to £12 million from £4 million.

In a bid to cut costs, AO has closed its loss-making German operations and simplified its UK business by focusing on more profitable lines that fit its core model.

Looking ahead, the company said the cash generation and profitability strategy set out in its full year results remains on track but warned that it expects the impact of a slowdown in consumer spending and ongoing supply chain issues to continue.