AO is back to being ‘highly efficient growth machine’ says founder
AO World expects consumer retail revenues to increase by about 12% year on year to £1.1bn.
In a trading update for the 12 months to 31 March 2025 issued to the markets this morning the Bolton-based electrical goods retailer said adjusted pre-tax profits will be at the “top end” of its guidance range of £39m to £44m.
At the period end the business also said it expects to have net funds of around £20m, after the outflow of c£25m for the acquisition of Music Magpie plc.
AO has extended its revolving credit facility in the period from £80m to £120m to October 2028 on more favourable terms, and it remains undrawn.
Music Magpie is expected to contribute around £30m of revenue and a negligible loss to the FY25 results.
AO has also made Mark Higgins its chief operating officer, in addition to his existing role of chief financial officer, which it said reflected the way he and CEO John Roberts “have been running the business together for some time.”
John Roberts, AO’s CEO and Founder, commented: “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.
“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 to 31 March 2025 on 18 June 2025.
