Electricals retailer AO World Plc (AO.L), on Tuesday, issued pre-close trading update for the 12 months to 31 March 2025 and reported that adjusted profit before tax grew approximately 30%—outpacing sales growth—and is expected to reach the upper end of its upgraded guidance range of £39 million to £44 million.
B2C Retail revenue is projected to increase by about 12% year-over-year, with like-for-like (LFL) Group revenue estimated to grow around 7% YoY to £1.1 billion. This reflects reductions in the B2B and mobile segments as the company continues to focus on profitable growth in line with its half-year results from November.
At the period's end, AO expects to have net funds (pre-IFRS16) of about £20 million, following an outflow of £25 million for the acquisition of musicMagpie Plc. During the period, the company extended its revolving credit facility from £80 million to £120 million, with an expiration date of October 2028. This facility remains undrawn.
The acquisition of musicMagpie, completed on 12 December 2024, is anticipated to contribute about £30 million in revenue to FY25, with only a negligible impact on profitability.
Looking ahead to FY26, AO forecasts continued double-digit revenue growth in its B2C Retail segment, while other revenue categories are expected to remain broadly flat. Despite economic uncertainty and cost pressures from the Government's budget, adjusted PBT is again expected to outpace sales growth.
Additionally, the company announced the appointment of Mark Higgins as Chief Operating Officer, expanding his responsibilities alongside his existing role as Chief Financial Officer.
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