AO World swings to full-year profit after cost cutting efforts
Online electrical goods firm AO World has swung to a full-year profit thanks to cost cutting efforts as part of a turnaround.
The company, which has its recycling centre in Telford, posted pre-tax profits of £7.6 million for the year to March 31 against losses of £10.5 million the previous year.
But revenues slumped 17 per cent to £1.4 million over the year after stripping out loss-making sales and as weak shopper confidence impacted demand amid the cost-of-living crisis.
AO World said it was “confident” of returning to sales growth in the medium term and would begin investing again in the businesses “prudently”.
AO World founder and chief executive John Roberts said: “The significant improvement in our profit performance speaks for itself and has been achieved by focusing on our core strengths and simplifying our operations.”
He added: “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.”
