AO World has hailed a record performance after its profits surged nearly 30% driven by cost-saving initiatives and strong growth of its membership scheme.

Adjusted pre-tax profits for the electricals specialist rose 27% to £44m for the year to 31 March, coming in at the top end of its £39m to £44m guidance.

This was driven by a 9% increase in group sales to £1.13bn and several cost-saving efficiencies, including the introduction of a new third-party warehousing solution in its distribution centre.

AO benefited from returning customers, which accounted for over 60% of orders during the year. It expects this trend to improve over time.