18th Jun 2025 08:31
(Alliance News) - AO World PLC on Wednesday hailed a "record" performance, and it expects to report further growth in the new financial year.
The Bolton, England-based online electrical goods retailer reported a 40% decline in pretax profit for the year ended March 31, to GBP20.6 million from GBP34.3 million. On an adjusted basis, however, surged 27% to GBP43.5 million from GBP34.3 million. On a like-for-like basis, adjusted pretax profit shot up 32% to a record GBP45.2 million. Like-for-like profit beat its guidance range of GBP39 million to GBP44 million.
The adjusted profit measures strip out a GBP14.7 million impairment charge at its Mobile Cash Generating Unit, amid "challenging trading conditions in the mobile market". The like-for-like calculation does not include musicMagpie, which it acquired in December.
AO World's revenue improved 9.5% to GBP1.14 billion from GBP1.04 billion.
"Our 25th year in business has been our best yet. We've delivered a record profit before tax performance, significantly grown our sales, and continued to delight our ever-growing customer base with trusted, outstanding service," Chief Executive John Roberts said.
"And the really great news is that there's so much more for us to go after, with a total addressable market of over GBP28 billion. Given the size of that prize, the fantastic momentum that we're seeing across the business, and our awesome team of AOers, I couldn't be more excited about the next 25 years."
Looking ahead, the company expects adjusted pretax profit between GBP40 million and GBP50 million for the new year, growth of up to 15%.
It added: "As we look to FY26 we have a number of initiatives in the pipeline which we expect to give customers more opportunities to buy from us, and more reasons to keep coming back to us. Despite the wider macroeconomic challenges, particularly employment cost increases, our objectives remain unchanged and we are confident in our ability to continue to grow revenue."
Shares in the company were 0.2% lower at 100.60 pence each in London on Wednesday morning.
By Eric Cunha, Alliance News news editor
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