AO World PLC (LSE:AO.) saw its shares jump over 11% higher on Friday morning after the online electrical retailer upgraded its guidance for the financial year ending last month.
The company said it has seen positive traction from its initiatives to reduce costs and improve margins, while potential adverse effects from trading risks, continuing macroeconomic uncertainty, and a tough consumer environment have not materialised to the extent envisaged.
AO said it now expects profits to come in around the top end of the £37.5mln to £45mln adjusted EBITDA guidance issued in February.
UK revenues for the year are expected to be £1.13bn, in line with plans, and AO's resulting online UK market share is 32.1%. The company's £80mln revolving credit facility has been renewed with HSBC, NatWest, and Barclays, extending to April 2026, investors were also told.
In early trading, AO World shares were up 11.2% at 75.20p.