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Online electrical retailer AO now expects its adjusted EBITDA to be in a range of £37.5m to £45m for the full year.
The increase in the retailer’s profit guidance for the year to March 2023 comes as AO has continued to reduce costs and improve margins.
As a result, the group’s margin improvement initiatives have driven higher retail gross margins than previously expected and anticipates that this will continue for the remaining five weeks of the financial year.
During the group’s initial trading update announcement on 10 January, it announced a profit guidance range of £30m to £40m.
A spokesperson from AO said: “The steps we have taken to simplify the business and become more efficient have outperformed expectations and been delivered quicker than expected. Mobile RPI price increases have also been slightly higher than our prudent forecast.”
AO expects to post its full year trading statement on 14 April.
