AO lifts full-year guidance after cutting costs
While the group previously warned of adverse effects from trading risks, macroeconomic uncertainty and a tough consumer environment, these had ‘not materialised to the extent envisaged’
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AO World has said it is confident its full-year profits will be at the top end of its previous guidance after the electrical retailer worked hard to reduce costs and improve margins over the year.
While the group previously warned of potential adverse effects from trading risks, macroeconomic uncertainty and a tough consumer environment, it said that these had “not materialised to the extent envisaged” in its previous trading update.
Now, estimated revenues for the full-year to 31 March 2023 are expected to be £1.13bn, in line with its plans.
Its £80m revolving credit facility has also been renewed with HSBC, NatWest, and Barclays, extending to April 2026.
At the period end it also expects to be holding a modest net funds position that reflects an improvement of around £20m from its interim position at September 2022.
John Roberts, CEO and Founder, 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 EBITDA.
“We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will continue through the next 12 months and beyond.”
AO is set to publish its full-year results on 5 July 2023.
