AO World plc Trading Statement (1722W)
April 14 2023 - 1:00AM
UK Regulatory
TIDMAO.
RNS Number : 1722W
AO World plc
14 April 2023
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 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.
Enquiries
AO World plc
John Roberts, Founder and Chief IR@AO.com
Executive
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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