Last checked at 10 Jan 2023 07:00
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
AO WORLD PLC
Unscheduled Trading update and Increased Profit Guidance
AO World plc ("the Company" or "AO"), a leading online electrical retailer, today issues the following unscheduled trading update for its third quarter, the three months to 31 December 2022, increasing our profit guidance for the year to March 2023.
As previously stated, since the beginning of the current financial year we have been focussed on profitability, prioritising more profitable cash generative sales and reducing costs. UK revenue continues to be in line with the Board's expectations, decreasing by 17.2% compared to the same period last year. However, the actions taken by the business to reduce costs and improve margins, as described in our interim results in November are gaining traction, and profitability is now running ahead of our previous expectations.
Accordingly, the Board now expects Adjusted EBITDA1 to be in a range of £30m to £40m for the full year, ahead of our previous guidance2. 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 will publish a scheduled full year pre close trading statement on 30th March 2023.
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AO World plc | ||||||||||
John Roberts, Founder and Chief Executive | IR@AO.com | |||||||||
Mark Higgins, Group CFO | ||||||||||
Powerscourt | Tel: +44 (0)20 7250 1446 | |||||||||
Rob Greening Nick Hayns Sam Austrums | ||||||||||
1 Adjusted EBITDA is defined as profit/(loss) before tax, depreciation, amortisation, net finance costs, profit/loss on disposal of fixed assets, and other adjusting items (including restructuring costs).
2 In our half year results announcement on 22 November 2022 we guided to around the top end of a £20m to £30m range.
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. |