14th Apr 2023 11:04
(Alliance News) - AO World PLC on Friday hailed its cost cutting initiatives as it expects to meet the top end of its outlook for adjusted earnings before interest, tax, depreciation and amortisation range for the financial year that ended on March 31.
"The potential adverse effects from trading risks, continuing macroeconomic uncertainty and tough consumer environment that we anticipated at 28 February have not materialised to the extent envisaged," it said.
Consequently, AO World raised its profit guidance to the top end of the previous GBP37.5 million to GBP45 million range for Ebitda, surging from GBP8.5 million a year ago. It expects annual UK revenue in the 12 months to March 31 to be GBP1.13 billion, falling 17% from GBP1.37 billion a year prior, in line with its plans.
"AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance of 5% adjusted Ebitda," said CEO & Founder John Roberts.
Further, it renewed an GBP80 million revolving credit facility with HSBC Holdings PLC, NatWest Group PLC and Barclays PLC to April 2026. It anticipates a modest net funds position, expecting an improvement of around GBP20 million from its half-year position in September.
Looking ahead, AO World said it continued to see positive traction from cost cutting initiatives.
The company expects to release its full year results on July 5.
AO World shares rose 13% to 76.60 pence each in London on Friday morning.
By Tom Budszus, Alliance News reporter
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