LONDON, Nov 21 (Reuters) – British online consumer electricals retailer AO World raised its expectations for the full year after returning to profit in the first half as reduced costs and improved margins offset a fall in sales in a tough market for discretionary spending.
In the UK, though inflation is falling, borrowing costs are high, the housing market is slowing and there is pressure on so called big-ticket expenditure.
AO (AO.L), a seller of washing machines, fridge freezers, cookers, TVs and laptops said on Tuesday it made a pretax profit of 13 million pounds ($16.20 million) in the six months to Sept. 30, versus a loss of 12 million pounds in the same period last year, despite a 12% fall in revenue to 482 million pounds.
For its full 2023/24 year it forecast a pretax profit of 28 million pounds to 33 million pounds, up from previous guidance of around 28 million pounds. It expects full year revenue to fall around 10%.
“We will continue to invest prudently in the business and seize the significant market opportunities that we see in front of us,” the group said.
AO shares are up 60% so far this year.
($1 = 0.8025 pounds)
Reporting by James Davey; Editing by Kate Holton and Sarah Young
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