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(Alliance News) - AO World PLC on Tuesday reported a substantially widened interim pretax loss, but confirmed that it was making progress on its strategic plans.
Shares in AO World climbed 15% to 60.00 pence each in London on Tuesday around midday.
In the six months that ended September 30, AO's pretax loss widened to GBP11.6 million from GBP4.3 million in the same period last year.
The Bolton, England-based online electrics retailer adjusted earnings before interest, taxation, depreciation and amortisation fell 11% to GBP9 million from GBP19 million.
Its revenue dropped 17% to GBP546.3 million from GBP660.6 million last year. AO said the whole of the major domestic appliance market dropped 11% year on year while the online market fell 18%.
AO said the results represented "solid progress" in the plan to pivot the business to focus on profit and cash generation.
Founder & Chief Executive John Roberts said "we've made good progress with our strategic realignment as we focus on profitability and cash generation, all of which is yielding the results we expected."
Sales for the 2023 financial year are forecast to be within the range guided while profit is now expected to be around the top end of previous guidance, between GBP20 million and GBP30 million.
It has simplified its UK business and closed its German operation with "minimal cash impact" to the wider group.
The company noted that it is "not immune to the challenging and uncertain consumer environment" but will continue to keep a close focus on cost reductions
Roberts said: "While the short-term outlook remains challenging, I'm confident that our strategy is the right one, and as we position ourselves to be the UK's most trusted electrical retailer we look to the future with cautious optimism."
By Chris Dorrell; chrisdorrell@alliancenews.com
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