AO World profits rise amid membership scheme success
Looking to the medium term, AO has expressed confidence in its ambition of delivering a PBT margin of over 5%
Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
AO World has revealed that its adjusted profit-before-tax rose 27% to £44m for the year ended 31 March 2025, up from £34m in the previous year.
Alongside this, the company’s LFL group revenue grew 7%, to £1.11bn with its core B2C retail revenue rising 12% to £832m.
This growth was driven by the expansion of its Five Star membership offering as well as the broadening of its product range to around 9,000 products.
Furthermore, MusicMagpie contributed an additional £30m revenue to the group for the period, after AO acquired the company in October last year.
AO stated that its revolving credit facility was increased and extended with the total facility increasing from £80m to £120m which remains undrawn and now expires in October 2028.
Looking ahead, the company expects to grow its revenue alongside posting an adjusted PBT of between £40m and £50m in the next year, despite the wider macroeconomic challenges, particularly employment cost increases.
Looking to the medium term, AO has expressed confidence in its ambition of delivering a PBT margin of over 5%.
John Roberts, founder and chief executive, said: “Our 25th year in business has been our best yet. We’ve delivered a record10 profit before tax performance, significantly grown our sales, and continued to delight our ever-growing customer base with trusted, outstanding service.
“One of the key drivers of this performance is our Five Star membership programme, which is giving our customers even more reasons to keep coming back to us. We’re also broadening our product range beyond the Major Domestic Appliance category that we’re best known for.”
He added: “We added over 1,500 new products during the year, which means that categories such as fitness, drones, cameras and health and beauty are all now available at fantastic prices through AO.
“And the really great news is that there’s so much more for us to go after, with a total addressable market of over £28bn. Given the size of that prize, the fantastic momentum that we’re seeing across the business, and our awesome team of AOers, I couldn’t be more excited about the next 25 years. In many ways, we’re only just getting started.”
