FTSE 250-listed AO World posted sales of just over £1bn and said profits quadrupled to £34m.
The online retailer posted a 186% surge in underlying pre-tax profits to £34.3m for the year to March 31. On a statutory basis, pre-tax profits jumped from £7.6m to £34.3m.
Tumble dryers were one of the biggest sellers during the winter, as the UK experienced the 8th wettest winter on record.
AO World said that, despite “ongoing macro-economic challenges”, it remains confident of delivering double-digit sales growth in 2024-25 and seeing underlying pre-profits rise to £41m.
“The outlook is upbeat, with double-digit revenue growth and adjusted pre-tax profit of between £36 million and £41m expected in the coming financial year,” Richard Hunter, head of markets at Interactive Investor.
“The share price has reacted accordingly of late, with an increase of 34% over the last year comparing to a gain of 13.3% for the wider FTSE250. In historic terms, however, there is a gulf between the current price and the heady highs of January 2021 when the company was trading at levels of over 430p at the height of the pandemic and indeed perceived prospects for the company.
“As such, the shares are down by 54% over the last three years, although significant progress has since been made, the scale of which has prompted the market consensus to have risen to a buy on renewed growth prospects.”
