Cost cutting has helped online electrical goods retailer AO return to a full-year profit.
The Bolton-headquartered company has reported a pre-tax profit or £7.6m for the 12 months to the end of March 2023, compared to a loss of £10.5m in the prior year.
However, its revenue slumped 17% to £1.4m over the year after stripping out loss-making sales and as weak shopper confidence impacted demand amid the cost-of-living crisis.
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During the year AO completed a "major staffing restructure", which saw a "significant reduction in headcount" while it also closed three offices.
On its outlook, AO said it is "confident in our ability to deliver on our 5% EBITDA ambition in the short term and returning to top line growth in the medium term".
It added: "Our strategy now is to invest prudently in the business, seize the significant market opportunities that we see in front of us, leveraging our growing and loyal customer base."
Founder and chief executive John Roberts said: "We are delighted with the demonstrable progress that we've made with the strategic realignment of AO towards profitability and cash generation.
"The significant improvement in our profit performance speaks for itself and has been achieved by focusing on our core strengths and simplifying our operations, while still delivering the outstanding customer service for which we're famous.
"Looking ahead, we intend to continue with this focus whilst also retaining the flexibility to drive growth through disciplined investment at the right pace and at the right time.
"Over five million new customers experienced the AO Way over the last three years, during which time we've maintained our 'excellent' Trustpilot rating from more than 400,000 Trustpilot reviews, making AO the most trusted electricals retailer in the UK.
"I'd also like to thank all AOers for their support and commitment over the last 12 months I'm always very proud of the way in which they rise to the challenges and maintain our fantastic culture, which is ultimately how we deliver for customers.
"I'm also grateful to our manufacturer partners for their continued support as we navigate this hugely unpredictable trading period together."
Last month, AO revealed plans to create over 250 jobs at its headquarters.
In recent weeks, Mike Ashley's Frasers Group has become AO's largest shareholder following an initial £75m investment.
