- White goods online retailer AO World said it expected to report annual adjusted profit in line with market expectations following a strong final quarter to the fiscal year.

For the year ended 31 March 2021, adjusted EBITDA, or profit before tax, depreciation, amortisation, net finance costs, and other adjusting items, is expected to be in the range £63 million to £72 million, up from £19.6 million and in line with market consensus of about £66 million.

Revenues increased by 62% to £1.66 billion, with momentum continuing in the fourth quarter., the company's UK website, increased year-on-year revenue by 88% in Q4, and, its German website, increased full year revenue by 77%.

Its German business achieved run rate profitability in Q3 and is expected to generate profits in the current financial year, the company said.

The cash position was £66.5 million at year-end, up from £6.9 million last year.

The company said it was completing a full reconciliation of the contract base, and expected to report a £15 million writedown in the value of the contract asset relating to the period 2008 to 2020.

'The group delivered a strong performance across all aspects of the business, stepping up to, and capitalising on, the challenges and opportunities presented by the Covid pandemic,' the company said.

AO World will announce its full year results on Wednesday, 16 June 2021.

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