The AO World PLC (LON: AO) share price rose 3.26% after releasing the final audited results for the year ended 31 March 2023. The company noted that despite a 17% decline in revenues, it had made a step change in profitability as its Adjusted EBITDA was £45 million.
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The UK’s leading electricals retailer focused on its improved profitability, where it achieved an EBITDA margin of 4.0%, based on its adjusted EBITDA figure of £45 million, compared to last year’s figure, which was £23 million.
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The company also revealed that it had pivoted its business strategy by exiting some non-core business lines, which delivered operational efficiencies and reduced overheads ahead of the planned targets.
AO is a UK market leader in Major Domestic Appliances (MDA) with a 16% total market share and a 30% online share. The company served over 800,000 new customers during the year, with repeat customers representing an increasing share of its business.
The firm’s customer satisfaction scores are high, with Net Promoter Scores averaging c857 and over 400,000 Trustpilot ratings, with an average “Excellent” rating of 4.6/5 stars. These figures show that AO remains the UK’s most trusted electrical retailer.
AO exited the German market and managed to do so with a minimal cash impact on the Group. The retailer also simplified its UK operations by focusing on more profitable business lines that fit its core model.
The company revealed that it had recycled its six millionth appliance at the AO Recycling Facility and was liaising with manufacturers to use its recycled plastic in new products.
AO’s Founder and CEO, John Roberts, said: “We are delighted with the demonstrable progress that we’ve made with the strategic realignment of AO towards profitability and cash generation. The significant improvement in our profit performance speaks for itself and has been achieved by focusing on our core strengths and simplifying our operations while still delivering the outstanding customer service for which we’re famous. Looking ahead, we intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment at the right pace and at the right time.”
*This is not investment advice.
AO World share price.
The AO World share price rose 3.26% to trade at 82.78p, from Tuesday’s closing price of 80.17p.
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