Highlights
- B2C Retail revenue rises 12%, driving total Group revenue growth of 14% in HY26.
- Profit before tax increases 10% to GBP 18m despite inflationary pressures from wage and NI rises.
- Free cashflow improves to GBP 57m, supported by strong operating performance and working capital gains.
AO World PLC (LSE:AO) released its unaudited results for the six months ended 30 September 2025. Total revenue reached GBP 586m, up 14% from GBP 512m in the prior year. B2C Retail revenue contributed GBP 423m, a 12% increase from HY25, reflecting market share gains across key product categories.
Operating profit rose to GBP 18m, marking a 7% increase on the prior year (HY25: GBP 16m). Profit before tax grew 10% to GBP 18m despite cGBP 4m headwinds from National Minimum Wage and National Insurance cost increases. Basic earnings per share rose 15% to 2.22p (HY25: 1.94p).
Cashflow and Liquidity
The Group reported free cash flow of GBP 57m, a 306% increase compared to GBP 14m in HY25, aided by strong operational performance and a temporary improvement in working capital. Net funds at the period end stood at GBP 65m, up 70% from GBP 38m the previous year. AO continues its GBP 10m share buyback programme, with GBP 1m purchased by the end of the period and expected completion by March 2026.
Operational Developments
The post pay mobile business reached run-rate profitability, with improved commercial terms agreed with network partners. MusicMagpie integration and cost optimisation delivered a reduction in losses from cGBP 6m at acquisition to a forecast of cGBP 2m for FY26, with an exit run-rate expected to reach breakeven.
Customer Trust Metrics
AO maintains a Trustpilot rating of 4.9/5 across more than 850,000 reviews, reinforcing its position as a trusted electrical retailer in the UK market.
Outlook
The Group reported trading slightly ahead of previous expectations. Following the pre-close statement on 15 September 2025, FY26 profit before tax guidance has been upgraded to around the top end of the GBP 45–50m range, reflecting continued positive trading
Share Price Snapshot
AO was trading at GBX 102.60 per share as of 25 November 2025.
Download Free Report – Explore 3 Stock Ideas & Industry Insights
Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.
All investments involve risk—consider independent advice before making any investment decisions.
View 3 Research Reports
Disclaimer:
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.
Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.
Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.