AO World PLC has reported strong growth in revenues & profits despite inflationary ‘headwinds’.
The Bolton-headquartered electricals retailer said total revenue for the six months ended 30th September 2025 was £586 million, up 14% year-on-year.
Both operating profit and profit before tax were at £18m for the period, up 7% and 10% respectively.
AO said the national minimum wage and National Insurance cost increases had cost it £4m in the period.
It added that losses at its musicMagpie subsidiary had been narrowed from £6m at acquisition to a forecast of £2m for FY26, with an exit run-rate of breakeven, following ‘significant progress in integrating, streamlining and simplifying’ the proposition.
In September, AO updated its profit expectation to be between £45m and £50m. It has now upgraded its FY26 PBT guidance to be around the top of that recently narrowed range.
It said it had £200m of total liquidity at the period end.
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AO recently launched Switch24, which gives members access to the latest Apple handsets – specifically an iPhone 17 from £17 a month, upgraded every two years to the latest model.
It said its Five Star membership, which offers discounts to loyal customers, saw improvement across all metrics – renewal rates, member spend and share of wallet – in the period.
“These numbers speak for themselves, and it’s been another positive six months of operational and financial progress,” said founder and CEO John Roberts.
“I am incredibly excited to have launched Switch24… this is a first in the UK market. It is a great example of AO continuing to disrupt and innovate on behalf of our members to bring them the latest products at the lowest prices.
“It’s this kind of value and service that is cementing our position as the UK’s most trusted electricals retailer with our world class 4.9 / 5 Trustpilot score on over 850,000 reviews.
“Our strategy is working and we’re as confident as ever about AO’s upwards trajectory. As always, I’d like to thank every single one of our awesome AOers for their continued focus and dedication to giving our customers the best possible value.”