AO has announced a positive outlook for the financial year, anticipating a boost in profits and sales.
- In the first half of 2024, AO’s adjusted profit before tax surged by 30%, reaching £17 million.
- The company is forecasting yearly profits between £39 million and £44 million, expecting group revenues to hit £1.13 billion.
- Strategic initiatives included expanding the Five Star membership and acquiring musicMagpie.
- Anticipated cost increases have been noted following the UK Budget, impacting both direct and indirect business expenses.
AO has projected an optimistic financial outlook for the current year, driven by notable increases in both sales and profits during the initial half of 2024. The company’s adjusted profit before tax soared by 30%, reaching £17 million, while overall revenue climbed by 6% to £512 million.
AO has set a target for its full-year profits, estimating them to be between £39 million and £44 million. Additionally, they project the group’s revenues to reach the significant milestone of £1.13 billion by the end of the fiscal year.
Key developments during this period include the expansion of the company’s Five Star membership and the launch of a third-party warehousing solution for small products in April. Moreover, AO strategically acquired musicMagpie to enhance its business operations.
Amid these strategic advances, AO has also prepared for financial challenges ahead. The company anticipates an annual increase of £4 million in direct costs, alongside an additional £8 million in indirect costs, as a result of measures introduced in the recent UK Budget.
John Roberts, AO’s founder and chief executive, expressed his satisfaction with the company’s performance, highlighting the return to double-digit growth in the main B2C retail sector. He noted that while the wet summer weather led to a decrease in the expected sales of fridges and air conditioning units, other categories such as tumble dryers experienced unexpected boosts. He acknowledged the company’s focus on maintaining cost-efficiency, which ensured that profits grew at a faster pace than sales.
AO continues to drive its strategic growth and profitability, adapting to market challenges and opportunities effectively.
