AO has once again raised its full-year forecast, driven by a significant increase in both profits and sales during the first half of the year. The electricals retailer now projects adjusted profit before tax between £39 million and £44 million, with group revenues expected to reach £1.13 billion.
For the six months ending 30 September 2024, AO reported a 30% rise in adjusted profit before tax, reaching £17 million, while total revenues climbed 6% to £512 million. Operating profits grew by 11%, and B2C retail revenues increased by 13%, totaling £382 million.
The company noted that adjusted profit before tax and earnings per share for shareholders grew at a faster pace than revenues, in line with its strategic goals. Key operational milestones during the period included the expansion of its Five Star membership, the launch of a third-party warehousing solution for small products in April, and the acquisition of musicMagpie.
Following the recent UK Budget, AO anticipates an additional £4 million in direct costs annually, along with £8 million in indirect costs.
Founder and CEO John Roberts commented: “I’m delighted to report another successful six months for AO, with our B2C Retail business returning to double-digit growth. Despite a challenging summer, we managed to adapt, selling more tumble dryers instead of fridges and air conditioning units due to the wet weather. Our focus on efficiency ensured profit growth exceeded sales, as planned.”
Roberts added, “We’ve made strong progress beyond our core MDA category, and I’m encouraged by the positive response to our expanded range and value proposition in new categories.”
The company remains committed to its medium-term ambition of delivering a PBT margin of over 5%, supported by its continued focus on cost management and operational efficiency.