AO World revealed another profit upgrade in its latest interim results.
The electricals retailer saw pre-tax profit rise 10% to £18m for the six months ended 30 September 2025, despite inflationary headwinds of £4m from National Minimum Wage and National Insurance cost hikes. Operating profit jumped 7% to £18m over the period.
Total sales were also up 14% to £586m, from £512m the same time last year.
The brand noted that B2C retail revenues rose 12%, which it said were underpinned by market share gains across all of its key categories.
It also highlighted it had £200m of total liquidity at the period end, with free cashflow soaring 306% to £57m over the period.
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AO said that it had made “significant progress” in integrating, streamlining and simplifying musicMagpie, which had seen a reduction in losses made by the business year over year from £6m at acquisition to a forecast £2m for FY26 and an exit run-rate of breakeven.
AO founder and CEO John Roberts said: “These numbers speak for themselves, and it’s been another positive six months of operational and financial progress.”
“Our strategy is working and we’re as confident as ever about AO’s upwards trajectory.”
The company noted that it had upgraded its pre-tax profit guidance to be around the top of its previous expectation of between £45m and £50m, announced in its pre-close trading statement on 15 September.
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