AO has said it is “cautiously optimistic” about its future prospects as it raised expectations after putting a greater focus on profitability.
The Bolton-headquartered online electrical retailer has been targeting higher profits since the start of its current financial year, “prioritising more profitable cash generative sales and reducing costs”.
The listed business said its UK revenue continues to be in line with the board’s expectations, despite falling 17.2% in the three months to December 31, 2022, compared to the same period in 2021.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
However, AO added that “the actions taken by the business to reduce costs and improve margins… and profitability is now running ahead of our previous expectations”.
The company said it now expects its adjusted EBITDA to be in a range of £30m to £40m for the full year, ahead of its previous guidance .
It added: “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 is expected publish a scheduled full-year, pre-close trading statement on March 30.
READ MORE:
Pringles popularity boosts UK sales at Kellogg’s despite cereals fall
Record international demand helps sales surge at luxury car maker Bentley
Offer accepted for old HQ of Team GB uniform supplier with £5.5m price tag
New images reveal how inside new city centre landmark will look once completed
musicMagpie’s Walmart deal pleases analysts and investors as shares jump
