Online electrical retailer Ao World PLC (LON:AO.) swung back to a profit in the first half of its financial year on the back of increased revenues.
Adjusted underlying earnings were up to £1.5mln for the six months to 30 September, compared to the £4.5mln loss it posted this time last year.
That profit came on revenues of £325mln – a year-or-year increase of more than 20%.
“We have made progress in our mission to become the best electrical retailer in Europe, cementing our operations in Europe with the opening of our distribution centre in Germany and launching new categories for customers in both the UK and Europe,” chief executive John Roberts said.
One of the reasons for the turnaround is that customers are recognising that AO isn’t just a white-goods retailer and has more to offer, the firm added, which was helped by its refocused TV adverts.
As Black Friday – one of the biggest events in the retail calendar – draws near, AO told investors it was ready to deliver and had been preparing since last year’s event.
Looking forward, the firm told investors that although there will be some “pricing pressure” due to the post-Brexit fall in sterling, it is “on track” with its long-term strategy and expects to benefit from the growing trend of online shopping.
Shares were down 3% to 162p in early deals on Tuesday.