AO World has raised its profit guidance for the financial year ended last month.
In its trading update for the six months ended 30 September, the online electrical retailer stated it now expects profits to come in around the top end of the £37.5 million to £45 million adjusted EBITDA.
As a result, UK revenues for the year are expected to be £1.13 billion, which is in line with plans, the retailer revealed.
It added that it has also seen positive traction from its initiatives to reduce costs and improve margins due to the “challenging and uncertain consumer environment”.
Click here to sign up for our newsletter
“We expect to continue to be impacted by both the cost-of-living crisis affecting consumer spending, as well as by ongoing supply chain issues,” the company said in a statement.
AO World also said that its £80 million revolving credit facility has been renewed with UK banks Barclays, HSBC and Natwest, extending to April 2026.
“We are encouraged by the work undertaken to pivot the business during the financial year 2023,” AO World CEO and founder John Roberts said.
“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.
“We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will continue through the next 12 months and beyond.
Image credit: AO World