AO World PLC (LSE:AO.), the online electrical retailer, has raised its profit guidance for the year, reflecting actions taken to reduce costs and improve margins.
In a trading update for the three months to 31 December 2022, the company said it has remained focused on profitability, prioritising more profitable cash generative sales and reducing costs.
UK revenue continues to be in line with expectations, decreasing by 17.2% compared to the same period last year.
But actions on costs and margins are “gaining traction”, the company said.
This meant adjusted EBITDA is now forecast to be in a range of £30mln to £40mln for the full year, ahead of previous guidance of £20mln to £30mln given in November.
“We remain cautiously optimistic and yet mindful of the continuing macroeconomic uncertainty and tough consumer environment, whilst also taking into account both the extent to which these and inflationary pressures can impact our contract assets,” AO said.