AO Notes Strong Revenue Growth; Increases Profit Guidance

AO World PLC ("the Group" or "AO"), the UK's most trusted electrical retailer, today announces its unaudited financial results for the six months ended 30 September 2025 ("HY26").

The period saw continued delivery of strong revenue, profit and cash generation growth. 

Financial highlights

• B2C Retail revenue up 12%, underpinned by market share⁴ gains across all key categories, with total Group revenue growth of 14%.
  
  
• Continued profit progress, with PBT up 10% to £18m (HY25: £16m) achieved despite inflationary headwinds of c£4m from National Minimum Wage (NMW) and National Insurance (NI) cost increases.
  
  
• £200m of total liquidity at the period end. Profit converting to cash, with free cashflow of £57m (HY25: £14m) driven by a strong operating performance and a temporary improvement in working capital.
  
  
• Ongoing £10m share buyback programme continues, with c£1m purchased by the period end and expected to complete by March 2026. 

Operational highlights

• Switch24 launched. A first-to-market proposition on the latest Apple handsets exclusively for Five Star members; an iPhone 17 from only £17 a month, upgraded every two years to the latest model.
  
  
• Continued investment in our Five Star membership proposition through compelling discounts across all categories. All metrics across renewal rates, member spend and share of wallet improved in the period.
  
  
• Globally leading Trustpilot rating of 4.9 out of 5 on over 850,000 reviews - further cementing AO as the UK's most trusted electrical retailer.
  
  
• Post pay mobile business now run-rate profitable and improved commercial terms agreed in principle with the networks.
  
  
• Significant progress made in integrating, streamlining and simplifying musicMagpie has seen a significant reduction in the losses made by the business YoY, from c£6m at acquisition to a forecast of c£2m for FY26 and an exit run-rate of breakeven.  There remains significant untapped opportunity to further optimise and scale. 

Outlook

We are pleased with the Group's progress in the first half, with trading slightly ahead of our previous expectations, despite the inflationary headwinds. In our pre-close trading statement on 15 September 2025, we updated our profit expectation to be between £45m and £50m. Given continued positive trading since then, we now upgrade our FY26 PBT guidance to be around the top of that recently narrowed range.

AO's Founder and Chief Executive, John Roberts, said:   

"These numbers speak for themselves, and it's been another positive six months of operational and financial progress. 

"I am incredibly excited to have launched Switch24, a new proposition which enables our Five Star members to buy the latest Apple handsets from as little as £17 for an iPhone 17. This is a first in the UK market, and also allows our members to have the latest iPhone every two years. 

"It's a great example of AO continuing to disrupt and innovate on behalf of our members to bring them the latest products at the lowest prices. 

"It's this kind of value and service that is cementing our position as the UK's most trusted electricals retailer with our world class 4.9 / 5 Trustpilot score on over 850,000 reviews. 

"Our strategy is working and we're as confident as ever about AO's upwards trajectory. As always, I'd like to thank every single one of our awesome AOers for their continued focus and dedication to giving our customers the best possible value."

Source : AO World plc

Image : AO World plc

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