AO World swung to profit in its half-year results as it removed unprofitable sales and introduced charges on all deliveries.

The electricals retailer made a £13m pre-tax profit, compared to a £12m loss last year as it upgraded its profit guidance from £28m to between £28 to £33m for the year.

Adjusted EBITDA rose from £9m last year to £27m for the six months ended 30th September 2023.

Sales fell 12% to £482m as a result of it stripping out unprofitable sales, however it expects to return to revenue growth by the end of the year.

The retailer’s gross margin improved to 23.5% compared to 19.5% last year.