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UK electrical retailer AO World recorded pre-tax profit of £50.5m for the year ending March 2026, a 16% increase on the previous period.
As a result, the company announced plans to return a further £20m to shareholders via a share buyback or dividend.
It comes as revenue reached £1.27bn, including the contribution of Music Magpie, which was acquired in late 2024. The board said the results leave the retailer “well-positioned” to meet market expectations for the 2026 financial year.
As predicted, adjusted profit before tax (PBT) grew faster than revenue, elevating the margin to 4%, pushing the business towards its medium 5% PBT goal. The group ended the year with a net cash position of £66.6m, up from £26.3m the prior year.
The business has attracted over 720,000 new customers during the year, as well as securing ongoing investment in AI, automation and data. AO has also seen progress in re-commerce and recycling, supporting both customer value and long-term sustainability.
AO founder and chief executive John Roberts said: “These results represent an incredible team effort with revenue up 11% to £1.27bn, profit up 16% to a record £50.5m, and the strongest balance sheet in our history. And all delivered against a backdrop of rising costs.
“AO Membership continues to go from strength to strength and there’s more to come with the launch of Switch24 and AO Mobile, which combined, are the best way to get the latest iPhone paired with an all-you-can-eat SIM at a market-leading price. It’s scaled economies shared and is exactly what our members want at a time when every pound counts.”
He added: “We’ve also announced today our intention to return a further £20m to our shareholders, which is a reflection of the cash this business now generates and the discipline with which we allocate it.”
