// AO posts “solid progress” in its plan to focus on profitability over growth
// It recorded a statutory pre-tax loss of £12m in the six months to September 30
AO has warned on the continued impact of the cost-of-living crisis but struck a positive note on annual profit outlook.
The online electricals retailer recorded “solid progress” in its plan to focus on profitability over growth, despite suffering widening half-year losses.
AO made a statutory pre-tax loss of £12 million during the six months to September 30, widening from £4 million during the same period a year ago. Its operating loss trebled to £9 million.
AO remained in the black on adjusted EBITA basis although that slipped 11% to £9 million.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
AO previously guided that full-year adjusted EBITDA would be in the region of £20 million to £30 million.
It now expects earnings to come in at the top end of that range.
Consumers have been increasingly conscious of spending during the cost-of-living crisis which AO said drove “a reduction in the overall electricals market”.
As a result, AO suffered a 17% drop in sales to £546 million across the six months of its fiscal year.
