Electricals giant AO World said the retail market had performed better than expected as it released an upbeat trading statement.
The Bolton-headquartered group today said its measures to cut costs and improve margins were seeing “positive traction” and that its profit guidance was not at the top end of the guidance it issued in February.
In a trading update for the year to March 31, AO said estimated UK revenues for the full year to 31 March 2023 were expected to be £1.13bn.
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AO also said its £80m revolving credit facility had been renewed with HSBC, NatWest, and Barclays, extending to April 2026.
It said: “Consistent with the themes set out in the trading statement issued on 28 February 20231, we continue to see positive traction from our initiatives to reduce costs and improve margins. 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 and as such we are updating our profit guidance to around the top end of profit guidance issued at that date.
CEO and founder John Roberts said: “We are encouraged by the work undertaken to pivot the business during the financial year 2023.
“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 EBITDA4. We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will continue through the next 12 months and beyond."
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