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UK on-line electricals retailer AO World has raised its full-year revenue expectations after reporting greater gross sales and earnings for the primary half, regardless of inflationary “headwinds”.
For the monetary 12 months ending 31 March 2026, the retailer now anticipates adjusted pre-tax revenue to be near the higher finish of its beforehand acknowledged vary of £45m ($59m) to £50m.
Within the six months to 30 September 2025, AO World generated income of £586m, a 14% improve in contrast with the identical interval a 12 months earlier.
Working revenue and revenue earlier than tax every got here in at £18m, representing year-on-year progress of seven% and 10% respectively.
The retailer’s B2C enterprise recorded a 12% uplift in income, supported by market share good points throughout all key classes.
AO highlighted greater labour-related prices, noting that will increase within the nationwide minimal wage and Nationwide Insurance coverage contributions had a £4m influence throughout the half-year interval.
The corporate additionally up to date on its musicMagpie subsidiary, stating that losses had been decreased from £6m on the time of acquisition to an anticipated £2m for the fiscal 12 months 2026, with an “exit run-rate of breakeven”, following what it described as “important progress in integrating, streamlining and simplifying” the enterprise.
AO reported complete liquidity of £200m on the finish of the interval.
The retailer has not too long ago launched Switch24, a membership providing that gives entry to Apple smartphones, together with “an iPhone 17 from £17 a month, upgraded each two years to the most recent mannequin”.
AO added that efficiency of its 5 Star membership scheme, which provides advantages to repeat prospects, has improved throughout all key indicators within the half, together with renewal charges, member spending and share of pockets.
AO founder and chief govt John Roberts acknowledged: “We’re happy with the group’s progress within the first half, with buying and selling barely forward of our earlier expectations, regardless of the inflationary headwinds.
“Our technique is working and we’re as assured as ever about AO’s upwards trajectory.”
“AO World lifts revenue steering as income and earnings rise” was initially created and printed by Retail Perception Community, a GlobalData owned model.
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