// AO raises its guidance to “around the top end” after seeing positive movement from its strategy to reduce costs and improve margins
// Risks of macroeconomic uncertainty did not materialise to the extent it had previously feared
AO World has raised its profits guidance once again “to the top end” of its previous expectations of £37.5-40 million, well up on the £20-30 million it guided late last year.
The online retailer said risks of macroeconomic uncertainty and a tough consumer environment did not materialise to the extent it had previously feared as it preps to release its full-year results in July.
As a result, it now estimates UK revenues for the full year to March 31 2023 are forecast to be £1.13bn.
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Founder and chief executive 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 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.”
Gowling WLG law firm retail partner Sarah Riding said: “While some retailers are feeling the full brunt of the current economic conditions, AO World has been reaping the rewards after a series of cost-cutting measures were implemented to boost the company’s margins.”
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