AO World increases profits by 30% and predicts even greater sales this coming year

25.03.2025

This morning John Roberts, boss of AO World (LON:AO), has declared that his electrical retail group is growing its profits faster than its sales.

With its mission to be the destination for electricals, the group

offers major and small domestic appliances and a growing range of mobile phones, AV, consumer electricals and laptops.

It also provides ancillary services such as the installation of new and collection of old products and offers product protection plans and customer finance.

AO Business serves the B2B market in the UK, providing electricals and installation services at scale.

The group also has a WEEE processing facility, ensuring customers' electronic waste is dealt with responsibly.

Management Comment

Founder and CEO of the Bolton-based group stated that:

"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.

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."

Guiding the market to look for his group's adjusted pre-tax profits for the year to end-March to be at the top of market expectations, at around £44m.

Those results are due to be announced on Wednesday 18th June.

Despite economic and Budget challenges the group looks to be pushing the coming year sales growth to be beaten by faster profit improvements.

The group's shares, which were up to 121p in July last year, have since been down to 88.45p before closing last night at around the 95.50p level, valuing the business at £560m.

A move to push above the 100p barrier is nigh, with a chance of touching 120p as better trading and margins become evident.