British electronics retailer AO World (LSE:AO.) said on Friday it anticipates full-year profit will reach the top of its previously guided range, supported by gains in market share across its key product segments.
The online-focused group, which sells household appliances and consumer electronics such as washing machines and TVs, has continued to expand its product offering while benefiting from a value-driven membership model that has helped boost customer demand.
AO now expects adjusted profit before tax for the financial year to come in at the higher end of its £45 million to £50 million guidance range. Revenue for the twelve months to March 31 is estimated to have increased by approximately 11%.
“Demonstrating again that profits are growing quicker than sales, in the region of c15% year-on-year adjusted PBT growth, despite material cost headwinds,” AO World said in the update.
The company also highlighted that it has secured hedging arrangements covering about 80% of its expected fuel consumption and the entirety of its electricity needs through the 2027 financial year, helping to shield it from recent geopolitical and energy market volatility.
By the end of the year, AO expects liquidity to stand at around £200 million, while free cash flow is projected to rise significantly to roughly £65 million, up from £23 million in the previous year.
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