Annual profits and revenues are up at AO World plc as it eyes an expected positive impact from the deal to acquire musicMagpie in December.
For the 12 months to 31st March 2025, the Bolton-headquartered online electricals retailer reported a 30% increase in adjusted profit before tax. AO said this is expected to be around the top end of its previously upgraded guidance range of £39-44m.
B2C retail revenues are expected to increase by 12% YoY, with estimated like-for-like group revenues up 7% YoY to £1.1bn.
Double digit B2C retail revenue growth is forecast again for the year ahead.
The group has net funds of around £20m after the outflow of £25m for the acquisition of musicMagpie plc, which AO expects to contribute around £30m of revenue and a negligible loss to the FY25 results.
AO extended its revolving credit facility in the period from £80m to £120m to October 2028 on more favourable terms, and it remains undrawn.
The company has appointed Mark Higgins to COO, in addition to his existing role of CFO.
“Our strong performance shows that our model is working,” said John Roberts, CEO and founder, who featured on our 2024 Northern Leaders list.
“AO is back to being a highly efficient growth machine; we are reaping the rewards from the execution of our strategy and 25 years of unwavering obsession with amazing customer service.
“We’re carrying good momentum into the new financial year and are pleased to be guiding to another year of double-digit revenue growth in our B2C Retail business, and for profits to keep growing faster than sales.”
AO expects to publish its full-year results on 18th June 2025.
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