AO World plc Trading Statement (1584M)

TIDMAO.

RNS Number : 1584M

AO World plc

10 January 2023

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 EBITDA(1) to be in a range of GBP30m to GBP40m for the full year, ahead of our previous guidance(2) . 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 30(th) March 2023.

 
 
   Enquiries 
 AO World plc 
 John Roberts, Founder and Chief                                  [e-mail] 
  Executive 
 Mark Higgins, Group CFO 
 
 
 Powerscourt                                       Tel: [phone] 
 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 GBP20m to GBP30m 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. 
 
   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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January 10, 2023 02:00 ET (07:00 GMT)