AO raises full-year profit guidance amid LFL sales surge
AO has also announced that it has appointed Mark Higgins as its chief operating officer in addition to his existing role of chief financial officer
AO has revealed that its adjusted profit-before-tax has grown in the region of 30%, and is expected to be around the top end of its previously upgraded guidance range of £39m to £44m for the year ended 31 March 2025.
Alongside this, its B2C retail revenues are expected to increase by around 12% YoY, with estimated LFL Group revenues expected to increase around 7% YoY to £1.1bn.
The company stated that this will reflect reductions in B2B and mobile as it focuses on profitable growth as set out in its half year results in November.
At the period end the company expects to have net funds on a pre IFRS16 basis of around £20m, after the outflow of around £25m for the acquisition of Music Magpie.
The company also extended its revolving credit facility in the period from £80m to £120m to October 2028 on more favourable terms, and it remains undrawn.
AO has also announced that it has appointed Mark Higgins as its chief operating officer in addition to his existing role of chief financial officer.
Looking ahead to FY26, AO’s current momentum means it expects its B2C retail business to deliver another year of double-digit revenue growth and its other revenue categories to be broadly flat.
Despite the wider economic uncertainty and cost headwinds from the Government’s budget the company again expects adjusted PBT to continue to grow faster than sales.
John Roberts, AO CEO and founder, said: “Our strong performance shows that our model is working. With a globally leading Trustpilot score of 4.9 from almost 750,000 reviews, and AO Five Star membership continuing to grow strongly, we’re cementing our position as the most trusted electrical retailer and are increasing our frequency and share of wallet with customers.
“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.”
He added: “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.”