The founder of AO.com John Roberts is in line for a £400 million windfall following revised estimates of the value of his firm.
Roberts is understood to be planning an IPO of the online kitchen appliance delivery firm this year that could value the business at between £1 billion and £1.2 billion. The revised valuation emerged last week way ahead of initial forecasts last year which were closer to £300 million.
Roberts owns a 40 per cent stake in the fridge and washing machine delivery business which he founded a decade ago. The entrepreneur is heavily involved in the day-to-day running of the business including responding personally to all customer correspondence.
The company offers free next day delivery from its own website and also fulfils delivery on behalf of other retailers including Boots and Next. AO.com generates about three quarters of its revenue with third party contracts generating the rest.
The firm's finance director Steven Caunce is understood to have a stake of around 20 per cent. Sales in the year to March were £275 million with profit of £8.1 million.
For more on AO.com, see our Online Retail Stars of 2013 Report: AO.com.
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