Last checked at 14 Apr 2023 07:00
14 April 2023
AO WORLD PLC
Full Year Trading Update for FY23
Guiding to the top-end of the previously issued profit range
Revolving Credit Facility renewed
AO World plc ("the Company" or "AO"), a leading online electrical retailer, today issues the following trading update for the 12 months to 31 March 2023.
Consistent with the themes set out in the trading statement issued on 28 February 20231, we continue to see positive traction from our initiatives to reduce costs and improve margins. The potential adverse effects from trading risks, continuing macroeconomic uncertainty and tough consumer environment that we anticipated at 28 February have not materialised to the extent envisaged and as such we are updating our profit guidance to around the top end of profit guidance issued at that date.
Estimated UK revenues2 for the full year to 31 March 2023 are expected to be £1.13bn, in line with our plans. AO's resulting online UK MDA market share is 32.1%3.
The Company's £80m revolving credit facility has been renewed with HSBC, NatWest, and Barclays, extending to April 2026. At the period end we expect to be holding a modest net funds position on a pre IFRS16 basis, reflecting an improvement of circa £20m from our interim position at September 2022.
John Roberts, CEO and Founder, commented:
"We are encouraged by the work undertaken to pivot the business during the financial year 2023. AO enters the new financial year with net funds on the balance sheet, a robust trajectory, and full confidence in our ability to deliver on our medium-term profit guidance of 5% adjusted EBITDA4. We anticipate that our progress in improving both operational cost efficiencies and margin in FY23 will continue through the next 12 months and beyond."
AO expects to publish its Full Year Results to 31 March 2023 on 5 July 2023.
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AO World plc
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John Roberts, Founder and Chief Executive | IR@AO.com | |||||||||
Mark Higgins, Group CFO
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Powerscourt
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Tel: +44 (0)20 7250 1446 | |||||||||
Rob Greening Nick Hayns | ||||||||||
1 In our trading update announcement on 28 February 2023 we guided to a range of £37.5m to £45m adjusted EBITDA.
2 Based on unaudited management accounts. AO World's financial year FY23 runs from 1 April 2022 to 31 March 2023.
3 Based on GfK data reflecting market share data as at February 2023 vs February 2022.
4 Adjusted EBITDA is defined a profit/(loss) before tax, depreciation, amortisation, net of finance costs, profit/(loss) on disposal of fixed assets, and other adjusting items (including restructuring costs).
About AO AO World plc, headquartered in Bolton and a constituent of the FTSE Small Cap index, is a leading online electricals retailer in the UK. Our strategy is to create value by offering our customers brilliant customer service and making AO the destination for everything they need, in the simplest and easiest way, when buying electricals, including major and small domestic appliances and a growing range of mobile phones, AV, consumer electricals and laptops.
We deliver for our customers via our in-house logistics business and carefully selected third parties. We also provide ancillary services such as the installation of new products and recycling of old products as well as offering product protection plans and customer finance. AO Business serves the B2B market in the UK, providing electricals and installation services at scale. Our Recycling capability, a WEEE processing facility, allows AO to ensure its customers' electronic waste is dealt with responsibly.
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Cautionary statement This announcement contains certain forward-looking statements (including beliefs or opinions) with respect to the operations, performance and financial condition of the Group. These statements are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. By their nature, future events and circumstances can cause results and developments to differ materially from those anticipated. Except as is required by the Listing Rules, Disclosure Guidance and Transparency Rules and applicable laws, no undertaking is given to update the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise. Nothing in this document should be construed as a profit forecast or an invitation to deal in the securities of the Company. This announcement has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to AO World plc and its subsidiary undertakings when viewed as a whole. |