AO World Doubles Profit to £51 Million, Unveils £20 Million Payout
Updated
Updated · City A.M. · Jun 17
AO World Doubles Profit to £51 Million, Unveils £20 Million Payout
3 articles · Updated · City A.M. · Jun 17
Summary
£51 million in pretax profit and £1.3 billion in revenue marked a strong year for AO World, which paired the results with a £10 million special dividend and a £10 million share buyback.
£66 million in free cash flow and £201 million in liquidity underpinned the payout, while AO said Music Magpie is now run-rate profitable after helping lift second-hand commerce revenue 181% to £120 million.
150 jobs have already been moved to South Africa, with 50 more to follow, as AO said higher UK employer national insurance and minimum wage costs added £8.5 million a year.
Shares rose 2.6% to 98.5p as the retailer said its post-pay mobile arm had returned to profit, though it still flagged geopolitical volatility, cost inflation and shifting consumer demand.