AO World lifts profit forecast, to buy back £10m in shares

(Sharecast News) - UK electrical retailer AO World on Monday ticked up the lower end of earnings guidance and announced its first-ever share buyback on the back of strong cash generation.

Full-year adjusted profit before tax is now expected to be £45m - 50m, up from prior guidance of £40m - 50m. Group revenue is expected to be up 13% with retail sales up 11%.

The company said it would buy back £10m in shares after generating £70m in cash with a revolving credit facility of £120m still undrawn.

Founder and chief executive John Roberts said the company's ongoing efforts to broaden its product range was an "increasingly key driver of our performance".

Reporting by Frank Prenesti for Sharecast.com