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(Sharecast News) - Electricals retailer AO World reported a robust performance in its full-year results on Wednesday, as it made progress in its strategy to pivot the business towards profit and cash generation.
The company said its revenue fell 17% year-on-year to £1.14bn, while adjusted EBITDA rocketed 102% year-on-year for the 12 months ended 31 March to £45m.
It swung to an operating profit of £13m from a loss of £8m in the 2022 financial year, while its profit before tax of £8m contrasted with a loss of £11m a year earlier.
AO World's net funds at year-end amounted to £4 million, whereas it carried a debt of £33m at the end of the 2022 period.
With a strengthened balance sheet, AO World achieved an adjusted EBITDA margin of 4.0% and an overall liquidity of £89m as at 31 March, compared to £50m in the prior year.
The firm said it further enhanced its financial position through a £40m share placing, while renewing its £80m revolving credit facility, which was now set to expire in April 2026.
Looking ahead, AO World said it was confident in its ability to deliver on its short-term goal of achieving a 5% EBITDA, while aiming to regain top-line growth in the medium term.
The company's strategy involved prudent investments in the business, capitalising on market opportunities, and leveraging its expanding and loyal customer base.
"We are delighted with the demonstrable progress that we've made with the strategic realignment of AO towards profitability and cash generation," said founder and chief executive officer John Roberts.
"The significant improvement in our profit performance speaks for itself and has been achieved by focusing on our core strengths and simplifying our operations, while still delivering the outstanding customer service for which we're famous.
"Looking ahead, we intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment at the right pace and at the right time."
At 0857 BST, shares in AO World were up 0.32% at 81.11p.
Reporting by Josh White for Sharecast.com.
