AO World counts cost of reduced spending

Online electricals retailer AO World has posted widened half-year losses after sales fell, and cautioned trading will remain under pressure amid the cost-of-living crisis and supply chain woes.

The group reported pre-tax losses of £12 million for the six months to September 30, against losses of £4m a year earlier, as revenues tumbled 17% to £546m.

Founder and chief executive John Roberts said the firm’s turnaround plan to strip out costs was paying off as it revealed full-year underlying earnings would now be at the top end of the £20m to £30m previous guidance.

The firm has seen its shares hammered over the past year after a series of profit warnings.