The online electrical goods seller AO has warned that its profits will dive this year as it faces falling sales and customers cancelling warranties on its products to save money amid the cost of living crisis.
It said underlying profits would be only £8m for the year to 31 March 2022, down from £64m last year, reflecting higher costs from driver shortages, extra marketing spending in Germany as well as lower sales and warranty cancellations. Sales fell 6% to £1.6bn in the year but remain 52% ahead of pre-Covid levels.
