AO revenues fall 17% in H1
The group also saw a statutory loss before tax of £12m compared to £4m in this year’s half-year results
Electrical retailer Ao reported a year-on-year revenue decline of 17% in the six months ended 30 September 2022, as the company experienced a reduction in the overall electricals.
It is reported that the group also saw a statutory loss before tax of £12m compared to a loss of £4m in this year’s half-year results.
Nevertheless, Ao has kept up an adjusted EBITDA margin of 1.6% and it maintains that its sales are “on track”, with profits for FY23 expected to be around the top end of guidance.
The group also “significantly” reduced its SG&A costs by £17m, with an overhead review and property rationalisation expected to lead to annual cost savings of at least £30m in the 2024 financial year compared to this year.
In addition, the group reportedly had over 410,000 new customers, as well as an increase in repeat customer purchase rates.
John Roberts, founder and CEO of Ao, said: “I’m pleased with this progress, particularly against the backdrop of an extraordinarily difficult macroeconomic climate. As ever, I’m hugely grateful for the hard work of all our AOers over the last six months. It hasn’t been easy and I’m extremely proud of their commitment to delivering our plan particularly during this peak trading period.
“Over the last 22 years, the team has built and nurtured trusted relationships with some of the world’s leading electrical manufacturers and I’m also grateful to them for their continued support.”
He added: “While the short-term outlook remains challenging, I’m confident that our strategy is the right one, and as we position ourselves to be the UK’s most trusted electrical retailer we look to the future with cautious optimism.”
