AO World has said it expects full-year adjusted profit before tax to come in at the top end of its upgraded guidance after delivering strong revenue growth in the year to 31 March 2026.
The online electricals retailer said total group revenue is expected to rise around 11 per cent, with B2C revenue up around 9.5 per cent, driven by market share gains across all key categories.
Adjusted profit before tax is forecast to be at the top end of the previously upgraded £45m to £50m range, representing year-on-year growth of around 15 per cent despite what AO described as material cost headwinds.
The group also said it expects to end the period with around £200m of liquidity, while free cash flow is set to increase sharply to around £65m, up from £23m in FY25.
AO said its profits continued to outpace sales growth, which it attributed to its “shared economics strategy” and membership model, alongside what it described as strong retail fundamentals.
Founder and chief executive John Roberts said: “The numbers speak for themselves again and I am delighted to keep doing our talking on the pitch.
“Our shared economics strategy and membership model, built on the foundations of brilliant retail basics, continues to deliver results. We continue to build momentum and all key metrics continue to improve, with an exciting pipeline of new initiatives ahead.”
AO added that it had hedging arrangements in place ahead of recent geopolitical developments, covering around 80 per cent of forecast fuel usage and all electricity usage for the full FY27 trading period.
Roberts also said AO was on track to become the first company globally to reach one million Trustpilot reviews with a 4.9 rating.
He said: “Having founded AO 26 years ago in a small office with three people and a dream, I am incredibly proud to have reached this milestone, which is a testament to the entire team.
“To achieve that in a logistically difficult category highlights the structural advantage we have been building with world class quality at scale.”
AO is due to publish its full-year results for the 12 months to 31 March 2026 on 17 June 2026.
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