Ao World Plc · LSE:AO.
Ao World — Investor Presentation (November 2024)
13 slides from Ao World's investor presentation, Nov 19, 2024
Slide 1: AO World PLC: Back to profitable growth; let's go!
AO World PLC Back to profitable growth; let’s go! 26th June 2024 AO has completed its turnaround back into profitable growth and announced FY24 Adjusted Company Data PBT of £34.3m, nearly triple FY23. This was 2%-3% ahead of our, and consensus, forecasts EPIC LSE: AO. and equates to a 3.3% Adj. PBT
Slide 2: AO World: Investment Attractions Overview
AO World PLC 26th June 2024 AO World: Investment Attractions Overview Investment Highlights Risk Factors • An excellent track record of UK revenue growth pre-COVID 21% CAGR FY11- • Macro-economic pressures on disposable income. FY20. • Irrational competitive pricing behaviour. • 5m additional custom
Slide 3: A simpler, leaner business
AO World PLC 26th June 2024 A simpler, leaner business The “Pivot to profit” strategy, launched in 2022, has worked AO has exited unprofitable business in Germany and UK… • Over the last four years, AO has dealt with the operational challenges of 60% sales growth during COVID and the subsequent unwi
Slide 4: Ready to grow again, the "AO way"
AO World PLC 26th June 2024 Ready to grow again, the “AO way” Excellent service drives revenues, profits and cashflow UK repeat customers driving sales growth… • AO has made these changes, including the retrenchment of some staff, whilst keeping its focus on excellent customer service. Having gather
Slide 5: Changes to estimates and financial forecast tables
AO World PLC 26th June 2024 Changes to estimates and financial forecast tables Only minor changes to future revenue and PBT forecasts; still a high growth outlook • We have made no changes to our forecast 13% Revenue growth outlook given management’s guidance of double-digit growth. • FY24 Adj. PBT
Slide 6: Key growth and margin metrics
AO World PLC 26th June 2024 Key growth and margin metrics Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E UK customers cumulative (m) 7.3 9.2 10.5 11.3 11.9 12.5 13.1 13.7 New UK customers (m) 1.0 1.9 1.3 0.8 0.6 0.6 0.6 0.6 Annual customers (m) 1.8 3.5 2.8 1.9 1.6 1.8 2.0 2.1 Repeat
Slide 7: Revenue analysis
AO World PLC 26th June 2024 Revenue analysis Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Product revenue 692.8 1200.3 1114.4 874.8 798.3 894 1010 1142 Service revenue 35.0 54.0 50.3 56.2 63.1 72 81 92 Commission revenue 143.3 146.0 156.8 156.4 128.1 154 174 196 Logistics revenue 1
Slide 8: Profit & Loss Summary: Revenue to operating profit
AO World PLC 26th June 2024 Profit & Loss Summary: Revenue to operating profit Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Group revenue 1045.7 1660.9 1,368.3 1,138.6 1,039.3 1,175.5 1,328.3 1,501.0 Cost of sales (867.9) (1,368.4) (1,104.9) (900.3) (796.0) (902.7) (1,022.7) (1,158
Slide 9: Profit & Loss Summary: Operating profit to EPS
AO World PLC 26th June 2024 Profit & Loss Summary: Operating profit to EPS Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Adj. Operating profit (1.9) 39.9 (6.2) 17.1 36.2 41.7 52.9 65.8 Interest on financial debt (1.9) (9.8) (0.6) (2.3) (0.9) (0.2) (0.0) (0.0) Interest on lease liabi
Slide 10: Cashflow
AO World PLC 26th June 2024 Cashflow Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Adj. EBITDA 19.2 64.6 8.5 46.2 60.4 66.6 79.5 94.1 Add back SBP charge 2.0 3.3 5.8 5.3 6.7 7.4 8.8 10.4 Change in inventories 4.0 (67.6) 41.2 9.0 (6.4) (10.7) (12.0) (13.6) Change in trade receivables
Slide 11: Net debt metrics
AO World PLC 26th June 2024 Net debt metrics Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Gross financial debt (21.9) 0.0 (45.0) (10.0) (2.1) (0.2) (0.2) (0.2) Net cash 6.9 67.1 19.5 19.1 40.1 70.5 112.9 166.7 Net financial (debt) / cash (15.0) 67.1 (25.5) 9.1 38.0 70.3 112.7 166.5
Slide 12: Balance Sheet: Liabilities
AO World PLC 26th June 2024 Balance Sheet: Liabilities Year-end 31 Mar, £m FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E Bank overdraft & s/t loans (5.2) 0.0 (45.0) (10.0) (0.2) (0.2) (0.2) (0.2) Trade payables and other liabilities (249.6) (411.4) (313.9) (249.5) (225.6) (250.7) (278.4) (309.1) Lease
Slide 13: Contacts Disclaimer
Contacts Andy Edmond Direct: 020 7065 2691 Tel: 020 7065 2690 andy@equitydevelopment.co.uk Hannah Crowe Direct: 0207 065 2692 Tel: 0207 065 2690 hannah@equitydevelopment.co.uk Equity Development Limited is regulated by the Financial Conduct Authority Disclaimer Equity Development Limited (‘ED’) is r