AO World has reported its strongest financial performance to date for the year ending 31 March 2026, with adjusted pre‑tax profits up 16.1% to £50.5m. Group revenue climbed 11.4% to £1.267bn, driven by continued market share gains and the first full‑year contribution from the musicMagpie acquisition.
Founder and chief executive John Roberts confirmed a £20m capital return programme, split evenly between a £10m special dividend and a £10m share buyback, reflecting the group’s strengthened balance sheet and confidence in future growth.
AO’s core B2C electricals retail division delivered 9.5% growth to £911m, underlining the brand’s resilience in a competitive market. The group also passed a global milestone, becoming the first retailer to surpass one million Trustpilot reviews, reinforcing its position as one of the UK’s most trusted online electricals specialists.
Looking ahead, AO expects FY27 performance to land in line with market expectations, supported by the rollout of its new Switch24 subscription model and the expansion of the AO Mobile membership platform.
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AO profit surge
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.
Frasers Group raises AO World stake
Frasers Group has raised its stake in online electricals retailer AO World to 25.01%, up from 24.02%, according to a recent regulatory filing.
This move strengthens the Sports Direct owner’s position as the second-largest shareholder in the business, following the retailer’s positive trading update this week.
AO World raised its full-year profit forecast, with adjusted pre-tax profits expected to be between £39m and £44m for the year ending March 31, 2025
AO profit
AO World swung to profit in its half-year results as it removed unprofitable sales and introduced charges on all deliveries.
The electricals retailer made a £13m pre-tax profit, compared to a £12m loss last year as it upgraded its profit guidance from £28m to between £28 to £33m for the year.
Adjusted EBITDA rose from £9m last year to £27m for the six months ended 30th September 2023.
Sales fell 12% to £482m as a result of it stripping out unprofitable sales, however it expects to return to revenue growth by the end of the year.
The retailer’s gross margin improved to 23.5% compared to 19.5% last year.
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