Companies roundup: AO World & Phoenix Group

Electrical retailer AO World (AO.) delivered annual profits ahead of guidance despite a drop in revenue, as its strategic focus on profit and cash generation paid off.

For the year to 31 March, adjusted pre-tax profits rose from £12mn to £34.3mn against a guidance range of £28mn-£33mn. However, revenue declined by 9 per cent to £1.04bn because of “actions taken to remove non-core channels and loss-making sales” and cost-of-living pressures hitting demand. Management guided for double-digit revenue growth and adjusted pre-tax profits of £36mn-£41mn this year. The shares rose 3 per cent in early trading. CA

Phoenix to sell SunLife business

Insurance giant Phoenix Group (PHNX) is looking to offload its SunLife arm, saying it is “no longer core to the delivery of its vision of becoming the UK's leading retirement savings and income business”. SunLife provides financial protection products to the over-50s market in the UK and reported profit after tax of £16mn last year. 

Phoenix has received a number of initial expressions of interest from third parties, but said there was no certainty at this stage that the disposal would take place. JS

Read more: Pay attention to this maturing income stock

Volex sales climb despite demand headwinds

Shares in Volex (VLX) fell 6 per cent this morning after the cable maker reported a 10 per cent decline in organic revenue in its electric vehicles division. Its consumer electricals arm has also been hit by destocking, with organic sales down by 7.6 per cent. Management blamed this on supply chain normalisation in North America and Asia.

However, organic revenue across the group climbed by 6.9 per cent, fuelled by strong demand for medical devices and data centres. Meanwhile, adjusted operating profit climbed by a third to $89.7mn (£70.8mn) and free cash flow improved from $38.1mn last year to $49.8mn in the year to 31 March 2024. JS

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