Among the major news on UK stocks, AO World PLC (GB:AO) soared after the company released upbeat results for the fiscal year that ended on March 31, 2024. The company reported an adjusted pre-tax profit of £34.3 million, marking a huge year-over-year growth of 186%. This surpassed the company’s previously guided range of £28 million and £33 million. The profit growth was driven by the successful implementation of the company’s strategy of shifting its focus towards profitability and generating cash.
Following the release of the results, AO World shares gained 2.3% as of writing. Year-to-date, the stock has experienced a gain of 25% in trading.
AO World is a retail group based in the UK, providing a wide range of electrical and household appliances.
Highlights from AO World’s FY24 Results
In FY24, AO World’s revenue slipped 9% to £1.04 billion compared to the previous fiscal year. The revenue dip was expected by the company, mainly due to the elimination of non-core channels and loss-making sales.
During the year, more than 600,000 new customers engaged with AO’s services. Meanwhile, repeat customers contributed 54% of its overall clientele. Additionally, the company achieved the milestone of 500,000 Trustpilot reviews, with an overall rating of 4.8 out of 5. Trustpilot is a Denmark-based leading online review platform that hosts reviews of businesses from around the world.
In terms of outlook, the company confirmed its double-digit revenue growth in FY25, coupled with an adjusted pre-tax profit ranging between £36m and £41m. Despite the ongoing macroeconomic challenges like inflation, shrinking consumer confidence, and higher interest rates, AO World remains confident about achieving its goals.
Is AO World a Good Investment?
In terms of share price appreciation, AO stock has received a Moderate Buy rating from analysts on TipRanks. The projected target for the AO World share price stands at 106.67p, indicating a potential downside of 8%.
