AO World backs FY expectations as H1 profit, revenue rise

24th Sep 2026 07:43

(Sharecast News) - AO World backed its full-year expectations on Thursday as it reported a rise in first-half profit and revenue, but shares in the online electricals retailer slumped, with investors seemingly disappointed there was no upgrade to guidance.

In a pre-close trading statement for the period from 1 April to 30 September, the company said year-on-year revenue is expected to be up 5.5%, while pre-tax profit is set to be more than 20% higher at around £21.5m.

"This reflects the underlying strength of the business, with operational improvements in our Mobile and musicMagpie businesses," it said. "Whilst this performance represents a strong first half of the year, our full year profit expectations remain unchanged, reflecting both planned strategic investments, including our ERP programme, and a more challenging comparative environment in the second half."

AO expects to end the period with more than £200m of liquidity headroom after the £10m dividend paid in June and the completion of half of the ongoing £10m share buyback programme. "This underlines the strength of our cash generation and our commitment to disciplined capital allocation," it said.

The company also said it had completed the acquisition of photography retailer Jessops from Dragons' Den entrepeneur Peter Jones.

Founder and chief executive John Roberts said: "We've carried our momentum into the new financial year with continued growth against a sluggish backdrop in the wider UK retail sector."

Roberts said AO is "firmly" on its path to over 5% pre-tax profit margin as its next milestone and has "clear growth and efficiency initiatives to make that happen".

He added: "There continues to be a lot of uncertainty in the world but we look forward to heading into peak trading with confidence and momentum behind us."

At 0950 BST, the shares were down 4.4% at 88.90p.

Dan Coatsworth, head of markets at AJ Bell, said: "The market is disappointed that AO has not upgraded earnings guidance despite having a good first-half period. It is facing tough comparative figures to beat in the second half.

"Investors might question the acquisition of camera retailer Jessops. Once a popular name on the high street, the photography expert has struggled as people are now able to take much better quality pictures on their mobile phones - thereby dampening demand for standalone cameras.

"The rise of social media has improved the company's prospects. It has driven demand for vlogging devices and compact cameras are coming back into fashion, both of which suggest a new lease of life for Jessops.

"AO is no stranger to buying companies that are seemingly on their knees. It bought tech trade-in group MusicMagpie which plays to its existing strengths in tech refurbishment. The key is proving to the market that these acquisitions aren't wasted money."

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