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(Alliance News) - AO World PLC on Tuesday lifted profit guidance on better-than-expected margins amid the online electrical goods retailer's cost saving measures.
Shares in the company jumped 29% to 72.50 pence each in London on Tuesday morning.
AO now expects adjusted earnings before interest, tax, depreciation, and amortisation between GBP37.5 million and GBP45 million for the year ending March.
Its outlook was lifted from the previous GBP30 million to GBP40 million forecast, which itself was bumped up from guidance of the top end of a GBP20 million to GBP30 million range.
"Margin improvement initiatives coupled with a continued resilient underlying customer base has driven higher retail gross margins than previously expected and we anticipate that this will continue for the remaining five weeks of the financial year. The steps we have taken to simplify the business and become more efficient have outperformed expectations and been delivered quicker than expected," AO World explained.
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