Business
Trading Statement
Trading Statement.
About this update from Ao World Plc
[{"type":"text","content":"\n\nThis announcement may contain 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, any inside information will be considered to be in the public domain.\n25 March 2025\nAO WORLD PLC\nFull Year Pre-Close Trading Update for FY25\nProfit1up c30% and around the top end of guidance range\nDouble digit B2C Retail revenue growth forecast again for the year ahead \n \nAO World plc (\"the Company\" or \"AO\"), the UK's most trusted electricals retailer, today issues the following update for the 12 months to 31 March 2025.\n \nB2C Retail revenues are expected to increase by c12% YoY, with estimated LFL Group revenues2 expected to increase c7% YoY to £1.1bn, reflecting reductions in B2B and mobile as we focus on profitable growth as set out in the half year results in November.\n \nAdjusted profit before tax1 has grown faster than sales, in the region of 30%, and is expected to be around the top end of our previously upgraded guidance range of £39m to £44m.\n \nAt the period end we expect to have net funds on a pre IFRS16 basis of around £20m, after the outflow of c£25m for the acquisition of musicMagpie plc (\"musicMagpie\"). The Company extended its revolving credit facility in the period from £80m to £120m to October 2028 on more favourable terms, and it remains undrawn.\n \nOn 12 December 2024, the Company successfully completed the acquisition of musicMagpie. The post-acquisition performance of musicMagpie is expected to contribute around £30m of revenue and a negligible loss to the FY25 results.\n \nLooking ahead to FY26, our current momentum means we expect our B2C Retail business will deliver another year of double-digit revenue growth and our other revenue categories to be broadly flat. Despite the wider economic uncertainty and cost headwinds from the Government's budget we again expect adjusted PBT to continue to grow faster than sales.\n \nWe are pleased today to also announce that we have appointed Mark Higgins to Chief Operating Officer (in additio...