AO World has been shaken by the cost of living crisis sweeping the UK in recent months, with the electricals retailer yesterday posting half-year losses.

Bosses at the company said they hoped a string of cost cutting initiatives would help unlock "at least" £30m annually in 2024. However, the company revenue has dived 17 per cent in the past six months to £546m.

The London-listed company has already rolled out a streamlining operation, including shutting up shop in Germany, in a bid to slash overheads and shield revenue from inflation.

"We've now closed the loss making and cash consumptive parts of our operations meaning the remaining UK business is cash generative," chief exec John Roberts said yesterday, adding that he was cautiously optimistic.

The reassurance yesterday drove shares up 15 per cent, though they are down more than 40 per cent this year.

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