Electricals retailer AO has increased its profit guidance and it said it was on track to deliver a strong profit performance and double-digit sales growth.
Group revenue is expected to rise 13% year on year, it said in its half-year results from April 1 to September 30.
B2C retail revenues are set to rise by 11%. As a result, it has updated its full-year adjusted profit before tax guidance to be in the range of £45m to £50m, instead of £40m to £50m.
The group also announced its first share buyback scheme of its ordinary shares up to £10m. Details will be revealed following shareholder approval of the programme at its annual general meeting today.
AO founder and chief executive John Roberts said: “I’m delighted that we are on track to deliver yet another period of double-digit revenue growth and a strong profit performance, whilst maintaining our globally leading customer service standards.
“Our strategy, as set out at our full-year results, is working and we have an exciting pipeline of further value to deliver for customers in H2. Our Five Star membership programme continues to go from strength to strength as our customers realise the exceptional value that it offers.
“This, combined with our ongoing efforts to broaden our product range, is an increasingly key driver of our performance.”
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