Electricals retailer AO World has been shaken by the cost of living crisis sweeping the UK in recent months, as its revenue plunges and losses take hold.
The London-listed company had already rolled out a streamlining operation, including shutting up shop in Germany, in a bid to slash overheads and shield revenue from rising inflation and continued supply chain disruptions.
Bosses at the company hope a string of cost cutting initiatives will help unlock “at least” £30m annually in 2024.
However, the company revenue has dived 17 per cent in the past six months to £546m.
Meanwhile, operating losses and pre-tax losses have ballooned 215 per cent and 168 per cent respectively. Collectively, they represent a loss of £21m.
“We’ve now closed the loss making and cash consumptive parts of our operations meaning the remaining UK business is cash generative and are successfully closing our German business with a minimal cash impact to the wider group,” chief executive John Roberts said in a statement.
“While the short-term outlook remains challenging, I’m confident that our strategy is the right one, and as we position ourselves to be the UK’s most trusted electrical retailer we look to the future with cautious optimism.”