AO World sees sunny annual forecast, plans first buyback scheme

(Alliance News) - AO World PLC on Monday forecast its annual profit rising to the higher end of guidance, as it shared plans for its maiden round of buybacks.

The Bolton, England-based seller of domestic appliances and consumer electronics expects full-year profit for financial 2026 at the top half of its target range, as it "continues to perform strongly".

For the first six months ending September 30, AO world expects revenue 13% ahead of the previous year. Revenue in its B2C division is expected to rise by 11% on-year.

The electrical retailer backed its full-year outlook for B2C growth in the double-digits, but raised its minimum profit target. AO World now expects pretax profit between GBP45 million and GBP50 million, compared to prior guidance ranging from GBP40 million to GBP50 million. In financial 2025, pretax profit was GBP45 million on a like-for-like adjusted basis, excluding gains from musicMagpie, an online electronics reseller which AO World acquired in December 2024.

The firm anticipates a GBP70 million cash position at the end of September, plus GBP120 million undrawn on a revolving credit facility, versus GBP123.0 million on-year, including undrawn loans.

Also on Monday, AO World said it will launch its first-ever buyback, noting "strong cash generation and the board's ongoing confidence in its future performance". The company will repurchase up to GBP10 million in shares, with further details expected after shareholders approve the decision at an annual general meeting on Monday.

"Our strategy as set out at our full year results is working and we have an exciting pipeline of further value to deliver for customers in H2," commented Chief Executive John Roberts.

Roberts cited the firm's membership programme, product diversification efforts and "leading customer service standards" for the optimistic outlook.

AO World will publish half-year results on November 25.

The company's shares rose 10% to 91.98 pence on Monday morning in London, and have lost 15% in the past 12 months.

By Holly Munks, Alliance News reporter

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