AO World PLC (LSE:AO.) has reported strong revenue growth and expects full-year profit to come in at the top end of its upgraded guidance.
In a trading update, the retailer of electrical products and related services said total revenue is expected to rise by around 11% for the year to 31 March 2026. Business-to-consumer (B2C) revenue is expected to grow by around 9.5%, supported by gains in market share across its core categories.
Adjusted profit before tax is expected to be at the top end of the £45–£50 million range. This represents growth of around 15% year-on-year, ahead of the pace of sales growth.
Cash generation improved during the period. Free cash flow is expected to be around £65 million, compared with £23 million in the prior year. The group expects to end the year with around £200 million of liquidity.
John Roberts, founder and chief executive officer, said: "The numbers speak for themselves again, and I am delighted to keep doing our talking on the pitch."
He said the firm’s “shared economics” approach and membership model, built on strong retail fundamentals, continue to deliver positive outcomes. He added that momentum is building, all key performance indicators are improving, and there is a strong pipeline of new initiatives in development.
Roberts also noted that AO is on track to become the first company globally to reach one million Trustpilot reviews while maintaining a 4.9 customer rating. Reflecting on the company’s journey since founding AO 26 years ago from a small office, he said reaching this milestone is a major achievement and a credit to the wider team. He highlighted that achieving this in a complex logistics-heavy sector demonstrates a structural advantage the company has built through high-quality, scalable operations, supporting its reputation as a highly trusted UK electrical retailer.
"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!"
The group said it had hedging in place ahead of recent geopolitical developments. This covers around 80% of forecast fuel usage and all electricity usage for the full FY27 period.