has hailed sales growth during its first quarter but warned that the UK trading environment “remains challenging”.

In a brief trading update ahead of its AGM this morning, the online electricals business said revenues from its UK website climbed 6.2% during the period from April1 to June 30, despite “lower volumes year on year”.

When accounting for revenues via third-party websites and third-party logistics sales, AO’s UK revenue advanced 2.5%.

AO, which narrowed its losses in the year to March 31, said its European business performed “in line with our plan” during the first quarter of the year, delivering a 57.6% sales surge on a local currency basis.

The retailer’s chairman Geoff Cooper said: “AO World remains on track with its long-term strategic plan and the board expects results for the full year to fall within the range of market expectations.

“Customer satisfaction continues to be exceptional in all of our territories and the roll-out of further categories across the UK and Europe continues.”

Cooper also hailed “encouraging” momentum in its European operations and said AO was “confident” it would deliver the plan it set out during a capital markets day back in February. will unveil half-year results for the six months ending September 30 on Tuesday November 21.