Business
Interim Results
Interim Results.
About this update from Ao World Plc
[{"type":"text","content":"\n\n\n \n21 November 2023\n AO WORLD PLC\nINTERIM RESULTS FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2023\n STRATEGIC PIVOT PROGRESS CONTINUES AND PROFIT GUIDANCE UPGRADED\n \nAO World PLC (\"the Group\" or \"AO\"), the UK's most trusted electrical retailer, today announces its unaudited financial results1 for the six months ended 30 September 2023 (\"HY24\").\nThe first six months to September 2023 saw the continued delivery of profit and cash generation. As a result, we are upgrading our profit before tax guidance for FY24 to between £28-33m.\n \n\n\n\n\n£m1\n\n\nHY24\n\n\nHY23\n\n\nMvmt\n\n\n\n\nRevenue\n\n\n482\n\n\n546\n\n\n(12%)\n\n\n\n\nAdjusted EBITDA2\n\n\n27\n\n\n9\n\n\n205%\n\n\n\n\nOperating profit/ (loss)\n\n\n15\n\n\n(9)\n\n\nNM%8\n\n\n\n\nProfit / (loss) before tax\n\n\n13\n\n\n(12)\n\n\nNM%\n\n\n\n\nBasic earnings/ (loss) per share\n\n\n1.64\n\n\n(2.14)\n\n\nNM%\n\n\n\n\nNet funds/ (debt)\n\n\n16\n\n\n(19)\n\n\nNM%\n\n\n\n\n \nHighlights\n· Step change in profitability year-on-year as we continue to deliver on our strategic pivot to profit and cash\n· Statutory profit before tax of £13m (HY23: £(12)m). Gross margin has improved to 23.5% (HY23: 19.5%) as a result of decisive action:\no Removing unprofitable sales as well as the introduction of delivery charges on all deliveries.\no Advertising and Marketing costs have been tightly controlled with a change in focus of spending from acquisition to brand investment.\no Warehousing costs have fallen to £25.5m (HY23: £31.3m) or to 5.3% of sales (HY23: 5.7%). Operational efficiencies and annualisation of property rationalisation, offset by inflationary increases in wages.\no Other admin costs have decreased by £9.4m to £56m. Tight control over ongoing spend has helped offset inflationary pressures.\no The overall mobile market has declined in the year, which has negatively impacted the Group's ability to hit network volume targets set for the calendar year 2023. This will have an overall single digit millions profit drag in FY24 and this is absorbed within the upgrade today.\n· Adjusted EBITDA of £27m (HY23: £9m), achieving an adjusted EBITDA margin of 5.6% (HY23: 1.6%)\n· Improved cash generation in...