AO World plc has reported a huge increase in profits alongside growing revenue after a push to recruit overseas.
Last year founder John Roberts said it would increase ‘offshoring’, blaming increases in the minimum wage and National Insurance – but said there were no plans to get rid of existing UK-based staff.
This morning the Bolton-headquartered electrical retailer said total revenue for the year ended 31st March 2026 grew 11.4% to almost £1.3 billion. That included the full-year impact of musicMagpie following its acquisition.
Profit before tax topped £50m, up 145% from £20.6m in the prior year.
The profitability was enhanced by the offshoring programme, it said, “delivering a lower cost base and greater operational flexibility without compromising service standards”.
AO said it intends to return a further £20m to shareholders via a special dividend of £10m and a new share buyback programme of £10m.
It pointed to its focus on its membership programme and said it attracted over 720,000 new customers during the year. New mobile products also drove growth, it said.
“Switch24 launched a first-to-market proposition on the latest Apple handsets exclusively for AO members; an iPhone 17 from only £17 a month, upgraded every two years to the latest model,” it said.
“[We] launched AO Mobile post year end, starting with friendly user trials, which will be expanded in further phases, with full launch expected within the first quarter of FY27.
“We look forward to combining this with our Switch24 product and expect the proposition to reflect customer demand for simple, low monthly pricing, providing access to the latest iPhone alongside a SIM-only plan.”
AO also became the first retailer globally to exceed a million Trustpilot reviews with a 4.9 out of 5 rating.
It also pointed to continued progress in recommerce and recycling, “strengthening our circular economy proposition through musicMagpie and our in-house recycling capabilities” as well as a collaboration with Timpson.
“These results represent an incredible team effort… the strongest balance sheet in our history. And all delivered against a backdrop of rising costs,” said Roberts.
“We’ve also become the first retailer in the world to exceed one million Trustpilot reviews at an overall rating of 4.9 out of 5. In a category as demanding as ours, that trust is hard-won and almost impossible to copy. It sits nowhere on our balance sheet, yet it’s among the most valuable things we own.
“None of this is the work of one person. It’s down to every AOer and every partner who shares our obsession with looking after customers. I started AO 26 years ago with a small team and a big idea and I’m as excited about the next 26 as I’ve ever been.”