AO on track for full-year profit at high end of forecasts

AO World has said that its full-year pre-tax profit is expected to reach the upper end of forecasts.

The electricals retailer, which has seen its profits grow at a rate of around 30%, anticipates its adjusted pre-tax profit will fall between £39m and £44m for the year ending March 31, 2025, in line with its previously revised guidance.

Furthermore, AO projects its B2C retail revenues will rise by approximately 12% year-on-year, with like-for-like revenue increasing by around 7% to £1.1bn

CEO and founder John Roberts said: “Our strong performance shows that our model is working.

“With a globally leading Trustpilot score of 4.9 from almost 750,000 reviews, and AO Five Star membership continuing to grow strongly, we’re cementing our position as the most trusted electrical retailer and are increasing our frequency and share of wallet with customers.

“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.”

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Following its acquisition of Music Magpie in December, AO said the newly acquired business is expected to contribute approximately £30 million in revenue, although it is projected to record a negligible loss for FY25.

Looking ahead, the business is confident that B2C retail will see another year of double-digit revenue growth, while other revenue segments are anticipated to remain largely stable.

In addition, it also expects its pre-tax profit to continue outpacing sales growth in the upcoming year.

AO added that its CFO Mark Higgins, will now take on the additional role of chief operating officer, a move that reflects his close collaboration with Roberts in running the business.

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