Ao World Share Discussion Threads

[queenbreguet] 01/4/2023 22:27

Director buy on 9th March - 500K @.66. Final results 14th April. Given last unscheduled update on profit guidence maybe worth tucking some away at the current price levels.

imo dyor

[quepassa] 23/3/2023 18:43

Oh. Wow!

Highly regarded and highly revered Odey Asset Management have just upped their collective holding/exposure to AO World by another 2 percent from 22.3% to 24.18% of Company voting rights.

See today's and prior RNS's- Holding in Company.


all imo. dyor.
qp

[quepassa] 21/3/2023 14:39

Interesting to compare today's share price and forecast earnings against actual share price and earnings as at y/e 31/3/21.

all imo. dyor.
qp

[quepassa] 21/3/2023 14:22

Ennismore Fund Management continuing to reduce their short position in AO World

28/2/23 1.68%
16/3/23 1.57%
17/3/23 1.49%

[quepassa] 21/3/2023 10:07

For anyone who missed them, two recent broker ratings:


28/2/23

Jefferies - Reiterate BUY - TARGET PRICE 85p

Peel Hunt - Reiterate HOLD - TARGET PRICE 80p


Both brokers see c 30%+ UPSIDE to current share price.

all imo. dyor.
qp

[blackhorse23] 15/3/2023 10:50

I prefer CURY over AO , more revenue, more profits, well known brands

[quepassa] 14/3/2023 15:45

MAKE NO BONES ABOUT IT.


18/08/22 RNS - FULL YEAR TO 31/3/23 GUIDED AT £20m-30m (adjusted EBITDA)
22/11/22 RNS - GUIDANCE INCREASED TO "TOP END OF THAT RANGE" of £20m-£30m
10/01/23 RNS - UNSCHEDULED TRADING UPDATE - FURTHER INCREASE GUIDANCE TO £30m-£40m
28/02/23 RNS - TRADING UPDATE AND YET FURTHER INCREASE GUIDANCE TO £37.5m-£45m


Cannot recall ever seeing three consecutive increases to earnings guidance with such rapidity.


ALL IMO. DYOR.
QP

[quepassa] 14/3/2023 14:04

Director Buying
Earnings Upgrade
Market sell-off due to SVB jitters - now contained.

[quepassa] 14/3/2023 11:42

An after-hours RNS yesterday, lost in the morass of general market bad news and jitters over SVB - but some very significant DIRECTOR BUYING.

500,000 shares at 66p.

Skin in the game!

Not surprising given recent profits upgrade.

ALL IMO. DYOR.
QP

[feelthepain] 28/2/2023 16:25

This has held up well I was tempted to sell and buy back in after the inevitable drop. glad I didn't sell as it pretty much just kept on rising . Only need to get to £1.09 and I have broken even

[deanmatlazin] 28/2/2023 13:57

Do you mean this is pumping and another placing is coming ?

[edmondj] 28/2/2023 13:39

They are being subtle: employing the term "profit guidance" albeit ebit-based.

No reference to any other measure.

[feelthepain] 28/2/2023 13:04

Csmweek. They specifically use the phrase increased profit in the update.

[glavey] 28/2/2023 12:49

"they also need to refinance debt in April"

Which could offer an understanding for the trilogy of trading updates.

[aishah] 28/2/2023 12:00

Surprised by the sharp move up. Short squeeze?

[deanmatlazin] 28/2/2023 11:02

April 2022 - Share price = £1

I hope it will go back to £1 in April 2023.

[babbler] 28/2/2023 11:00

Margins improved. That's the main thing.

[glavey] 28/2/2023 10:50

"From 22/11/2022 the company has increased it's EBITDA 3 times and will most likely be increased again on 14/04/2023 when they issue their full year update."

And at a quick glance it looks like it's previously been sold off into the rise each time. Quelle surprise.

[csmwssk12hu] 28/2/2023 10:17

EBITDA is not profit and cash flow though, they were burning through £1m per week at last update, they also need to refinance debt in April and that will be at significantly higher interest rates than previously which could well wipe out the improvement, the next 8 weeks will reveal all.

[clocktower] 28/2/2023 10:15

They clearly have learnt lessons from over expansion in the past.

[deanmatlazin] 28/2/2023 09:23

Cheap as chips at the moment. Re-rating is on the way. Awaiting broker upgrade :)

[z1co] 28/2/2023 09:06

The company has increased it's EBITDA from £20m - £30m to £37.5m - £45m. That's a massive 60% upgrade.

[aishah] 28/2/2023 08:43

Yes and mkt cap ~£350m. Broker upgrades should follow now imo. Golden Cross on the chart?

[z1co] 28/2/2023 08:39

In the January trading update the company upgraded it's EBITDA guidance from £30m which was also upgraded from £20m - £30m on 22/11/2022.

From 22/11/2022 the company has increased it's EBITDA 3 times and will most likely be increased again on 14/04/2023 when they issue their full year update.

[aishah] 28/2/2023 08:17

Cracking update with raised guidance:

Trading update and Increased Profit Guidance

AO World plc ("the Company" or "AO"), a leading online electrical retailer, today issues the following trading update, increasing our profit guidance for the year to March 2023.

Consistent with the themes set out in the trading statement issued on 10 January, we continue to see traction from the initiatives taken by the business to reduce costs and improve margins.

Margin improvement initiatives coupled with a continued resilient underlying customer base has driven higher retail gross margins than previously expected and we anticipate that this will continue for the remaining five weeks of the financial year. The steps we have taken to simplify the business and become more efficient have outperformed expectations and been delivered quicker than expected. Mobile RPI price increases have also been slightly higher than our prudent forecast.

Accordingly, the Board now expects Adjusted EBITDA 1 to be in a range of £37.5m to £45m for the full year, an increase to the previous guidance 2 that we gave in January 2023.

AO expects to publish a full year post close trading statement on 14 April 2023.

2. In our trading update announcement on 10 January 2023 we guided to a range of £30m to £40m.