AO World shares edge upwards as profit expected at top end of guidance

(Alliance News) - AO World PLC on Tuesday said it has returned to being a "highly efficiency growth machine", as it said profits have increased faster than sales.

In a pre-close trading update, the Bolton, England-based electrical retailer said it expects B2C Retail revenue to advance by around 12% for the year ending March 31.

It anticipates like-for-like group revenue to be up approximately 7% at GBP1.1 billion, compared with GBP1.04 billion realised the prior year.

This reflects reductions in mobile and B2B, said AO World, as it focuses on profitable growth.

Adjusted pretax profit is expected to reach the top end of its previously upgraded guidance range of between GBP39 million and GBP44 million for financial 2025, representing a notable uplift from GBP34.3 million the year prior.

Its shares were up 4.2% at 100.00p on Tuesday morning in London.

Looking further, to financial 2026, AO World said its current momentum guides its expectation that B2C Retail will experience "another year of double-digit revenue growth", with other revenue categories mostly flat.

Adjusted pretax profit is expected to continue growing faster than sales, added AO World, despite government budget related cost headwinds and economic uncertainty.

The firm added that Chief Financial Officer Mark Higgins has taken on the additional role of chief operating officer, which it said reflects the manner in which Mark and Founder & Chief Executive John Roberts "have been running the business together for some time."

AO World expects to report its full-year results on June 18.

Roberts commented: "Our strong performance shows that our model is working...AO is back to being a highly efficient growth machine; we are reaping the rewards from the execution of our strategy and 25 years of unwavering obsession with amazing customer service.

"We're carrying good momentum into the new financial year and are pleased to be guiding to another year of double-digit revenue growth in our B2C Retail business, and for profits to keep growing faster than sales."

By Christopher Ward, Alliance News reporter

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