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Electrical retailer AO World has reported that adjusted profits before tax reached £34.3m in the year to 31 March, spelling a year-on-year rise of £22.3m with a PBT margin of 3.3%.
According to the group, the strong profit performance above the top end of the previous range illustrates “the successful execution” of the group’s plan to pivot the business to focus on profit and cash generation.
Meanwhile, revenues were “as expected” following AO’s decision to remove non-core channels and loss-making sales, which it predicts will return the business to growth in Q4.
The group also has a £80m revolving credit facility, which has been extended until April 2027.
During the period, AO has remained a “market leader” in major domestic appliances with a 15% total market share.
In addition, it has had over 600,000 new customers experience the AO Way, with repeat customers – who accounted for 54% of all customers – taking an increasing share of overall business.
Despite the ongoing macroeconomic challenges, the retailer’s objectives remain unchanged and maintains confidence in its ability to deliver on double-digit revenue growth in FY25 alongside adjusted PBT of £36m to £41m.
John Roberts, founder and CEO of AO, said: “We have made good progress on our profit performance in FY24, which is a testament to the success of our strategic pivot to focusing on profit and cash generation. We are now a much simpler, more efficient business.
“Our focus now is on delivering profitable top line growth with an ambition for double digit revenue growth in FY25.”
He added: “None of this has happened by accident. All AOers have worked tirelessly to deliver this performance and I would like to thank them all. As ever, I’m also extremely grateful to our suppliers, partners and shareholders for their ongoing support.”
