AO World sees FY profit 'at least' at top end of guidance

(Sharecast News) - Electrical retailer AO World said on Thursday that FY24 adjusted pre-tax profit was set to be "at least" at the top end of the guided range of £28m to £33m. In an update for the year to the end of March, the company said revenues were estimated to come in at around £1.04bn. It said the core business continues to trade positively through the fourth quarter, with AO.com returning to revenue growth as expected.

At the period end, the retailer expects to have net funds on a pre IFRS16 basis of more than £30m. AO said its £80m revolving credit facility has been extended with existing lenders to April 2027 on the same terms.

Founder and chief executive John Roberts said: "I'm pleased with the clear progress that we're making after pivoting our focus to profit and cash generation during the 2023 financial year. As we expected at our half year results, we returned to revenue growth in our core business during Q4 and, as a result, we're entering the new financial year with good momentum.

"With net funds on our balance sheet and a clear plan, we remain confident in our ability to deliver on our ambition for 10-20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted PBT margin."