Market Reaction - AO World

 Publish Date: 28 March 2024

Time Period: FY24 (12 months to 31 March 2024)

- Estimated revenues for FY24 are expected to be around £1.04bn, with AO.com returning to revenue growth in Q4.

- Adjusted profit before tax for FY24 expected to be at the top of the previously guided range of £28-£33m.

- Net funds expected to exceed £30m at period end; £80m revolving credit facility extended to April 2027.

- CEO John Roberts highlighted progress towards profit and cash generation, and optimism for future revenue growth and profit margin.

AO announced pre-tax profits at the top end of their previous guidance, around £33 million, marking a record profit for the company after several challenging years. This would shift their P/E ratio to approximately 21—still reasonably high, but not extreme.

Their turnaround plans appear to be effective, and the market responded positively to this news with an 11% increase. This reaction seems proportional to the positive developments reported.