Shares of Bolton-based online electrical retailer AO World plc rose about 11% on Tuesday after it published an unscheduled trading update for its third quarter, the three months to December 31, 2022, increasing its profit guidance for the year to March 2023.
“As previously stated, since the beginning of the current financial year we have been focussed on profitability, prioritising more profitable cash generative sales and reducing costs,” said AO World.
“UK revenue continues to be in line with the board’s expectations, decreasing by 17.2% compared to the same period last year.
“However, the actions taken by the business to reduce costs and improve margins, as described in our interim results in November are gaining traction, and profitability is now running ahead of our previous expectations.
“Accordingly, the board now expects Adjusted EBITDA to be in a range of £30m to £40m for the full year, ahead of our previous guidance.
“We remain cautiously optimistic and yet mindful of the continuing macroeconomic uncertainty and tough consumer environment, whilst also taking into account both the extent to which these and inflationary pressures can impact our contract assets.
“AO will publish a scheduled full year pre close trading statement on 30th March 2023.”