The chairman of AO World is to resign after nearly eight years at the helm of the online white goods retailer.
AO World said that Richard Rose would leave the group, which floated in 2014, once a successor had been appointed. It said that Brian McBride, the senior independent director, would lead the nominations committee and look for a successor to Mr Rose.
The decision by Mr Rose comes nearly a year to the day after he sold nearly £10 million worth of shares, or 89 per cent of his stake in AO, at 180p.
At the time his sale raised eyebrows as it came only a few weeks after the online seller of fridges, washing machines and other electrical goods had issued a profit warning that sent its share price crashing by almost 50 per cent at one point.
Mr Rose sold the shares not long after the expiry of his lock-up period following the listing of the group in March 2014. When AO floated it was valued at £1.2 billion and ran up a premium of about 30 per cent on the first day, which sent its value up to about £1.7 billion.
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AO’s market capitalisation has since fallen and the group, headed by John Roberts, its founder and chief executive, has come under increasing pressure to improve its performance.
In January, AO World said it had not repeated its “Black Friday” errors of the past as its revealed strong third-quarter figures.
The group said that revenues from its website had risen by 35 per cent, which Mr Roberts attributed to festive good cheer: “Christmas is a time for coming together. If your cooker is a bit on the blink, perhaps you change it ahead of time rather than risk a disaster.”
Mr Rose, who retains a small shareholding in AO, said that he was leaving as it was the “right time” and AO’s long-term strategy that it set out at the time of the flotation was “firmly on track.
He said: “I feel very fortunate to have been a part of the AO growth story over the last eight years and to have worked with an outstanding team of people.
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“I am confident that through them, the company and its culture will continue to flourish and AO will continue to delight customers with its dedication to exceptional service.”
Shares in AO closed up 9.7 per cent at 187½p.