Slower than expected UK sales growth, pressure on profit margins and guidance for no change in trading patterns near-term has led stockbroker Numis to dramatically slash forecasts for fridges-to-washing machines seller AO World (AO.).

It has reduced EBITDA (earnings before interest, tax, depreciation and amortisation) forecasts for the financial year to March 2018 by 87.5% to a mere £2m.

‘While we have no reliable industry data to corroborate this, management is firmly of the view the softer trading performance is being driven by a significantly tougher white goods market,’ says Numis analyst Andrew Wade.