AO raises profit outlook
AO World has said profit in the year to 31 March 2023 is set to come in at the top end of expectations.
In a trading update, the online electricals retailer said it is continuing to benefit from its initiatives to reduce costs and improve margins. It also said that the potential adverse effects from trading risks, continuing macroeconomic uncertainty and tough consumer environment have not materialised to the envisaged extent.
The retailer said its UK revenues for the full year are set to be £1.13 billion, which is in line with plans, and that adjusted EBITDA will be at the top end of the £37.5 million to £45 million guidance issued in February
John Roberts, chief executive and founder of AO, said: “We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance of 5% adjusted EBITDA4. We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will continue through the next 12 months and beyond.”
The retailer also confirmed that its £80 million revolving credit facility has been renewed with HSBC, NatWest and Barclays and extended to April 2026.
