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The Markets
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Retail

AO World plans first share buyback and lifts profit outlook

AO World PLC (LSE:AO.) shares zipped over 9% higher to 91p after the online electrical goods retailer raised its profit forecast to the top half of previous guidance.

The FTSE 250 group said its consumer-focused revenues are set to grow 11% year-on-year in the six months to 30 September, with group revenue up 13%.

Off the back of that start to the year, the e-commerce outfit expects to deliver double-digit revenue growth in the first half of its financial year to March, with adjusted pre-tax profit anticpated to come in at between £45 million and £50 million, compared with a prior range of £40 million to £50 million.

AO is planning its first ever share buyback, of £10 million, thanks to a cash position set to be around £70 million at the half-year point, with its £120 million revolving credit facility undrawn.

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