Published : 2 weeks ago, on 26/11/2024

LONDON (Reuters) -British online electricals retailer AO World raised its annual profit outlook as it reported a 30% rise in first-half profit that reflected a return to double-digit revenue growth in its main business-to-consumer operation.

AO, a seller of washing machines, fridge freezers, cookers, TVs, laptops and mobile phones, said on Tuesday customers were “responding positively” to thousands of deals on offer for the Black Friday promotional period.

The group upgraded its guidance for 2024/25 adjusted profit before tax to between 39 million pounds and 44 million pounds ($48.9-$55.2 million) versus previous guidance of up to 41 million pounds and the 34.3 million pounds made in 2023/24.

First-half profit on the same basis was 17 million pounds on total revenue up 6% to 512 million pounds.

AO said a wet UK summer meant it sold fewer fridges and air conditioning units and more tumble driers than it had planned.

It said tax raising measures in the new Labour government’s budget last month would likely mean an additional 8 million pounds of annual costs.

Last week, dozens of UK retailers, including Tesco and Sainsbury’s, warned the budget will make both higher prices and job losses a certainty and dent investment.

($1 = 0.7964 pounds)

(Reporting by James Davey; editing by Sarah Young)