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AO World PLC on Tuesday lifted profit guidance on better-than-expected margins amid the online electrical goods retailer’s cost saving measures. Shares in the company jumped 29% to 72.50 pence each in London on Tuesday morning. AO now expects adjusted earnings before interest, tax, depreciation, and amortisation between £37.5 million and £45 million for the year ending March. Its outlook was lifted from the previous £30 million to £40 million forecast, which itself was bumped up from guidance of the top end of a £20 million to £30 million range. ‘Margin improvement initiatives coupled with a continued resilient underlying customer base has driven higher retail gross margins than previously expected and we anticipate that this will continue for the remaining five weeks of the financial year. The steps we have taken to simplify the business and become more efficient have outperformed expectations and been delivered quicker than expected,’ AO World explained. Comments and questions to newsroom@alliancenews.com Copyright 2023 Alliance News Ltd. All Rights Reserved.
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