Electricals retailer AO said today it expects to hit its previously pledged profit guidance and surpass £1bn in sales for the full year.

AO delivery van on residential street

AO expects to surpass £1bn in sales for the full year

AO said in a pre-close update that it expects adjusted profit before tax to be “at least at the top of the previously guided range” of between £28m and £33m.

Revenues for the full year to March 31, 2024, are also anticipated to reach £1.04bn.

AO also hailed a return to growth during its fourth quarter, which it said was “as expected”, and added that the core business “continues to trade positively”.

AO founder and chief executive John Roberts said: “I’m pleased with the clear progress that we’re making after pivoting our focus to profit and cash generation during the 2023 financial year.

“As we expected at our half-year results, we returned to revenue growth in our core business during Q4 and, as a result, we’re entering the new financial year with good momentum.

“With net funds on our balance sheet and a clear plan, we remain confident in our ability to deliver on our ambition for 10-20% revenue growth in the year ahead and medium-term profit guidance of 5% adjusted profit-before-tax margin.”