AO has upgraded its profit guidance for the year as it returned to sales growth in its final quarter.
The online electricals retailer said full-year sales are expected to hit £1.04bn, which it said was boosted by AO.com returning to revenue growth in its fourth quarter “as expected”.
As a result, it said it expects adjusted pre-tax profit for the 12 months to 31 March to be “at least” at the top of the previously guided range of £28m to £33m.
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AO chief executive John Roberts said: “I’m pleased with the clear progress that we’re making after pivoting our focus to profit and cash generation during the 2023 financial year.
“As we expected at our half year results, we returned to revenue growth in our core business during Q4 and, as a result, we’re entering the new financial year with good momentum.
“With net funds on our balance sheet and a clear plan, we remain confident in our ability to deliver on our ambition for 10% to 20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted profit before tax margin.”
AO increased its full-year guidance in November after it swung to a pre-tax profit of £13m for the six months to 30 September, up from a £12m loss, as its strategy of stripping out costs and unprofitable sales bore fruit.
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