RNS Number : 1722W

AO World plc

14 April 2023

   14   April 2023 


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 2023 (1) , 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 revenues (2) for the full year to 31 March 2023 are expected to be GBP1.13bn, in line with our plans. AO's resulting online UK MDA market share is 32.1%(3) .

The Company's GBP80m 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 GBP20m 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 EBITDA (4) . 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.

 AO World plc 
 John Roberts, Founder and Chief                                    IR@AO.com 
 Mark Higgins, Group CFO 
   Powerscourt                                       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 GBP37.5m to GBP45m 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. 
   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. 

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(END) Dow Jones Newswires

April 14, 2023 02:00 ET (06:00 GMT)

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