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Investing.com -- AO World (LON:AO), U.K.’s online electrical retailer, on Wednesday reported a 27% increase in adjusted pre-tax profit to £43.5 million for the fiscal year ended March 31, 2025, surpassing its previously upgraded guidance range of £39–44 million.
The company saw strong growth in its core B2C retail business, with revenue rising 12% to £832 million.
Group revenue on a like-for-like basis grew 7% to £1.108 billion, driven by the expansion of AO’s Five Star membership program and an increase in product offerings to around 9,000 items.
Jefferies described the year as “an outstanding FY25, in line with upgraded expectations,” noting that AO “reached a record level for the group, even surpassing the COVID-boosted peak in FY21.”
The company’s adjusted profit before tax margin improved to 4.1%, up from 3.3% the previous year, as it progresses towards its medium-term target of 5%.
“Our 25th year in business has been our best yet. We’ve delivered a record profit before tax performance, significantly grown our sales, and continued to delight our ever-growing customer base with trusted, outstanding service,” said John Roberts, AO’s Founder and Chief Executive.
The company’s Five Star membership program continued to show strong momentum, with growth in membership numbers, renewal rates, and share of wallet. Repeat customers accounted for over 60% of orders, which the company expects to improve further as its proposition and category awareness grows.
Jefferies said, “TrustPilot scores have reached ’globally leading’ levels,” and highlighted the Five Star program as a key growth driver.
AO World maintained a solid financial position, ending the year with net funds of £23 million after accounting for acquisition costs related to musicMagpie and funding its Employee Benefit Trust.
The company also increased and extended its Revolving Credit Facility from £80 million to £120 million, now expiring in October 2028.
AO World provided guidance for fiscal year 2026, projecting group adjusted profit before tax of £40–50 million despite macroeconomic challenges. Jefferies said the result “is a clear demonstration of the momentum that AO has now built,” and called the company “an outstanding customer-facing operation.”