LONDON (ShareCast) - (Sharecast News) - Electrical retailer AO World said on Thursday that FY24 adjusted pre-tax profit was set to be "at least" at the top end of the guided range of £28m to £33m.
In an update for the year to the end of March, the company said revenues were estimated to come in at around £1.04bn. It said the core business continues to trade positively through the fourth quarter, with AO.com returning to revenue growth as expected.

At the period end, the retailer expects to have net funds on a pre IFRS16 basis of more than £30m. AO said its £80m revolving credit facility has been extended with existing lenders to April 2027 on the same terms.

Founder and 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 10-20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted PBT margin."

At 1100 GMT, the shares were up 14.6% at 103p.

Russ Mould, investment director at AJ Bell, said: "Online white goods seller AO World's life as a public company has had more ups and downs than a rollercoaster and investors will hope today's ascent for the share price does not presage a rapid descent to come.

"Like many online-based retail businesses, AO was well-placed during lockdown but subsequently its fortunes took a turn for the worse. Having returned to a more sustainable path towards profit and cash flow in its financial year to the end of March 2023 the company has now confirmed revenue guidance for the current year and flagged profit at the top end of what was previously guided.

"For the year about to start, the group still hopes to see strong revenue growth and is sticking with its medium-term margin target.

"The basics of retail are fairly simple - have the right amount and the right kind of stock, sell it a price customers will stomach but which still allows you to make a decent profit, and make sure the customer experience is such that they will buy from you again. AO World seems to be getting more of this right and that's coming through in its financial performance."

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