Yahoo Finance AO World poised to reach top range of guidance as revenue grows
Electrical retailer AO World expects profit for the year to be at the top range of its previously guided forecast.
The business, which calls Frasers Group its largest shareholder, told the London market this morning its revenues for the full year will be around £1.04bn, as it returned to revenue growth in the fourth quarter.
In the year ahead, the firm said it was “confident” in its ability to reach 10-20 per cent revenue growth.
It follows a cost cutting drive which included a number of job cuts, and the closure of its German business.
Profit before tax is expected to be at the higher end of the previously guided range of £28-£33m.
John Roberts, chief executive and founder, said: “I’m pleased with the clear progress that we’re making after pivoting our focus to profit and cash generation during the 2023 financial year.
“As we expected at our half year results, we returned to revenue growth in our core business during Q4 and, as a result, we’re entering the new financial year with good momentum.”
Mike Ashley’s Frasers Group now owns almost a quarter of the firm after the retail giant further upped its stake last month.
The owner of House of Fraser and Sports Direct has a holding of 24.7 per cent in the Bolton-headquartered company.
The Derbyshire-headquartered group had previously owned just over 23 per cent of AO’s shares.
Other major shareholders in the company include Camelot Capital Partners (20.4 per cent) and CEO and founder John Roberts (18.3 per cent).
