Electrical retailer AO World has increased its annual profit forecast.

The retailer now expects profits for the year to the end of March to be at least at the top of its previous forecast of £28m to £33m.

It expects overall sales of £1.4bn for the year, up from £1.1bn last year.

John Roberts, CEO and founder, 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 PBT margin."

AO saw sales slump following the pandemic. It made savings by cutting employee numbers, closing German operations and ending contracts with housebuilders.

Image credit: AO World