AO World – positive Update sees founder John’s Gran delighted and hopes his Mum is proud, while Trust Pilot to hit one million 4.9 ratings, shares 89p, new SQC TP 110p

Mark Watson-Mitchell – 10.04.2026

This morning AO World (LON:AO.) has announced its Full Year Post-Close Trading Update for its year to end-March, which should see the group’s shares recovering from the current 89p.

The £495m-capitalised electricals retail group, which two weeks ago completed its share buyback programme, taking some 9.7m shares into treasury, has issued a very positive Update.

Double-digit revenue growth and a 15% profit growth is on the cards for the group’s Final Results to be declared on 17^th June.

In the meantime, its shares could well see an upward run to 110p in reaction.

The Business

The Bolton-based business is claimed to be the UK's most trusted major electricals retailer, with a mission to be the destination for electricals.

Its basic strategy is to create value by offering its customers brilliant customer service and making AO the destination for everything they need, in the simplest and easiest way, when buying electricals. 

The company offers major and small domestic appliances and a growing range of mobile phones, audio visual goods, consumer electricals and laptops.

It also provides ancillary services such as the installation of new and collection of old products and offer 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 waste electrical and electronic equipment (WEEE) processing facility, ensuring its customers' electronic waste is dealt with responsibly.

The Trading Update

The group anticipates strong financial performance for the full year to end-March, with total group revenue expected to grow by approximately 11% and B2C revenue by around 9.5%, driven by market share gains.

Adjusted profit before tax is projected to be at the top end of the previously upgraded guidance, between £45-£50m, representing a year-on-year increase of roughly 15% despite cost pressures.

The company has secured hedging for approximately 80% of forecast fuel usage and 100% of electricity usage for FY27.

Liquidity is expected to be around £200m, with free cash flow significantly improving to approximately £65m from £23m in the prior year.

Management Comment

Founder and CEO John Roberts stated that:

"The numbers speak for themselves again and I am delighted to keep doing our talking on the pitch.

Our shared economics strategy and membership model, built on the foundations of brilliant retail basics, continues to deliver results.

We continue to build momentum and all key metrics continue to improve, with an exciting pipeline of new initiatives ahead.

In the coming weeks, AO will become the first company globally to reach one million Trustpilot reviews with a 4.9 rating from customers.

Having founded AO 26 years ago in a small office with three people and a dream, I am incredibly proud to have reached this milestone, which is a testament to the entire team.

To achieve that in a logistically difficult category highlights the structural advantage we have been building with world class quality at scale.

This underpins our reputation as the UK's most trusted electrical retailer and the value of it sits on our balance sheet at zero.

I'd like to thank every AOer and every trading partner that has made it possible by embracing our relentless obsession with customers.

In line with our values, my gran is delighted and I hope my mum is proud!"

Analyst Views

City analysts are estimating that the last trading year could have seen revenues of £1,260m (£1,137m) while adjusted pre-tax profits could have hit £50.0m (£43.5m), with earnings of 6.0p (5.3p) per share.

For the year just underway to end-March 2027, they see sales of £1,330m, with £54.0m profits and 6.5p per share in earnings.

My View

I am a fan of AO World, both for its electricals offer and its service, as well as for the upside potential of its shares, now at 89p.

It is now moving on with another year of growth which will be reflected in its stronger share price.

In my ongoing belief of better times,  I now set a new SQC Research Target Price of 110p.

(Profile 17.09.24 @ 106.50p set a Target Price of 136p)

(Profile 18.06.25 @ 100.30p set a Target Price of 120p)

(Profile 10.04.26 @ 89p set a Target Price of 110p)

Happy John, delighted Gran and proud Mum?