AO World – the pre-AGM Update looks good, however, the shares are looking dull at 83.40p – too cheap in my view, brokers TP’s up to 150p

15.09.2025

Ahead of today’s AGM, the UK's most trusted electricals retailer, AO World (LON:AO.) has issued a Pre-Close Trading Update for the half-year to end-September.

It stated that the business continues to perform strongly, with B2C Retail revenues expected to increase by 11% YoY and with Group revenue expected to be up 13% YoY.

The group reiterated its FY26 revenue guidance of double-digit B2C growth and updated its profit expectation for FY26, with adjusted PBT now expected to be £45m to £50m versus the previous guidance range of £40m to £50m.

AO now expects that its H1 2026 cash position will be c£70m with its Revolving Credit Facility of £120m being undrawn.

The Management stated that given the Group's strong cash generation and the ongoing confidence in its future performance, the Company is today announcing its intention to commence its first-ever share buyback programme of AO's ordinary shares up to £10m.

Management Comment 

AO's Founder and CEO John Roberts stated that:

 "I'm delighted that we are on track to deliver yet another period of double-digit revenue growth and a strong profit performance, whilst maintaining our globally leading customer service standards.

Our strategy as set out at our full year results is working and we have an exciting pipeline of further value to deliver for customers in H2.

Our Five Star membership programme continues to go from strength to strength as our customers realise the exceptional value that it offers.

This, combined with our ongoing efforts to broaden our product range, is an increasingly key driver of our performance.”

The Business

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 the collection of old products

, while also offering product protection plans and customer finance. 

My View

Despite the group’s shares falling away of late, I remain totally convinced that it is pushing ahead as strongly as it can, while going against difficult retail trading generally.

Now at 83.40p they look too cheap to me.

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

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