AO has posted a 17 per cent increase in its revenues which reached £1.139bn for the year to March 31st, 2023. Pre-tax profit came in at £7.6m as against the £10.5m loss last year. Adjusted EBITDA was £45m.
AO attributed the turnaround to the removal of the distraction of non-core channels and loss-making sales, making operational efficiencies and reducing overheads. It had also closed its German business and three of its UK office sites. Having introduced delivery charges it had also eased pressure on its logistics business.
AO CEO & founder John Roberts said: “We are delighted with the demonstrable progress that we’ve made with the strategic realignment of AO towards profitability and cash generation.
“Looking ahead we intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment at the right pace and at the right time.”
Commenting on AO World’s Final Results, Julie Palmer, partner at Begbies Traynor said: “Stripping out costs, focusing on more profitable products and ditching underperforming markets has delivered for AO World
“It’s an impressive turnaround and return to profit despite lower revenue for the electricals business which stumbled after the lockdown boom but has been regularly upping forecasts since finding its feet at the start of the year.
“AO World says it has an ‘obsession’ around good service that means treating customers ‘like our grans’, something which has contributed to the 58pc repeat business rate.
“It’s possible that these two factors were key in Mike Ashley’s Frasers Group last month taking a near-20pc stake in AO after years of discussions, with the two businesses seeing chances to learn from each other.”
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