AO World PLC (LSE:AO.) has endured a chastening 18 months, shedding more than 80% of its market value, and next Tuesday’s half-year update might see some more downward readjustments.
In July, the online white goods retailer reported a swing to operating losses of £32mln for the previous year to March 31 2022, while for this year it has predicted revenues of between £1bn to £1.25bn, with underlying profits of [adjusted EBITDA] of £20-30mln.
Peel Hunt notes that two-thirds of profits came through in the second half last time, so this update will be more about “tone and Black Friday offers”.
Other things to watch are how the business looks after pulling out of Germany and if the move into new product areas such as TVs and laptops, which require a limited service differential, is a success.