AO World has posted a record adjusted pre-tax profit for its 2026 financial year, as expanded product ranges and discounts helped boost sales.

The electricals retailer, which sells products including TVs, washing machines and mobile phones, said adjusted pre-tax profit rose 16 per cent to £50.5m in the year to 31 March 2026.

The figure was broadly in line with company-compiled analyst estimates of £50m.

AO World also proposed returning £20m to shareholders following the stronger performance.

The company has been targeting cost-conscious households through wider ranges and discounts offered through its membership programme, as shoppers continue to face pressure from higher living costs.

It said it was still dealing with inflationary pressure, but added that the offshoring of customer contact centre operations to South Africa had delivered savings of around £2m.

Annualised savings from the move are expected to reach £4m.

AO World said it expects pre-tax profit for the year ending March 2027 to be in line with current market expectations of £54.6m.

The retailer said it remained confident in its medium-term target of achieving a 5 per cent profit margin, despite ongoing geopolitical volatility and cost pressures.

AO World could also benefit from the recent hot weather in the UK, which typically drives higher demand for cooling products such as fridges and air conditioners.

Peel Hunt analysts said they expected “continued progression” in AO World’s share of the major domestic appliances market.

They added that the retailer’s membership offer should help grow non-appliance sales from a relatively low market share base, despite the tougher consumer backdrop.

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