𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

AO World has said profits are on track to be at the “top end” of guidance as sales grew despite pressure on consumer finances and cost headwinds.

The white goods and electricals retailer told shareholders that total revenues are expected to have grown by around 11% over the year to March 31.

It said this will include roughly 9.5% growth in its consumer operations, with improved market share across its key categories.

Meanwhile, adjusted pre-tax profits are set to be at the top end of its guidance of between £45 million and £50 million.

The online retail business had increased its guidance to this range in September last year after positive sales growth in the first half of the year.

Bosses said its latest update points towards roughly 15% growth in adjusted pre-tax profits “despite material cost headwinds”.

It comes amid a backdrop of wider concerns from firms over the impact of the current conflict in the Middle East on energy costs.

AO said it had hedging arrangements in place which will cover around 80% of forecast fuel usage and 100% of electricity usage, covering the new financial year.

The company expects to have around £200 million of liquidity and free cash flow of around £65 million for the past year.

AO’s founder and chief executive John Roberts said: “The numbers speak for themselves again and I am delighted to keep doing our talking on the pitch.

“Our shared economics strategy and membership model, built on the foundations of brilliant retail basics, continues to deliver results.

“We continue to build momentum and all key metrics continue to improve, with an exciting pipeline of new initiatives ahead.”

The company will reveal its full financial results for the year on June 17.