AO raises full-year profit forecast on ‘strong’ sales performance

AO World has once again raised its full-year profit forecast, with the electricals retailer predicting its adjusted profit before tax will come in at the top end of its previously upgraded guidance.

The electricals retailer, which has enjoyed a 30% rise in profits, now expects adjusted PBT to be between £39m and £44m for the year ending 31 March 2025. This is in line with its earlier forecast, and comes as B2C retail revenues are expected to grow by 12%, with like-for-like revenues rising by 7% to £1.1bn

For the full year, AO is set to report another solid performance in its retail business, with revenue growth in its core categories.

This is despite ongoing challenges in the wider economy, where rising costs and economic uncertainty have put pressure on retailers across the sector.

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AO 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.”

Looking ahead, the retailer is confident that its B2C retail business will deliver another year of double-digit revenue growth in FY26.

It is also optimistic that its adjusted profit before tax will continue to grow faster than sales, despite external challenges such as inflation and cost pressures from the government’s recent budget announcements.

The company’s recent acquisition of musicMagpie is expected to contribute £30m  in revenue, though it will make a negligible loss for the year.

Additionally, AO announced that its CFO Mark Higgins will take on the additional role of chief operating officer, reflecting his close partnership with Roberts in managing the company’s strategy.

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