AO World shares soar amid strong update, £1bn revenue

Shares of Bolton-based online electrical retailer AO World plc rose as much as 12% after it published a strong trading update for the 12 months to March 31, 2024, and increased its guidance for adjusted profit before tax

“Estimated revenues for the full year to 31 March 2024 are expected to be circa £1.04bn,” said AO.

“Our core business continues to trade positively through Q4, and has returned to revenue growth during the quarter as expected.

“We now expect adjusted profit before tax for FY24 to be at least at the top of the previously guided range of £28-£33m.

“At the period end we expect to have net funds on a pre IFRS16 basis of over £30m. The company’s £80m revolving credit facility has been extended with existing lenders to April 2027 on the same terms.”

AO World CEO 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 10-20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted PBT margin.”