Electricals retailer AO expects its profit to come in at the top end of its guidance range as its adjusted profit before tax grows faster than sales.
Electricals retailer AO expects its profit to come in at the top end of its guidance range as its adjusted profit before tax grows faster than sales.
In its full-year pre-close update, AO said adjusted profit before tax is forecast to be in the higher end of its previously upgraded guidance range of £39m to £44m.
Its B2C retail revenues are expected to increase by around 12% year on year, with like-for-like group revenues set to increase by around 7% to £1.1bn. The group says this “reflects reductions in B2B and mobile as we focus on profitable growth” set out in its half-year results last year.
AO also acquired Music Magpie in December 2024. This acquisition is expected to contribute £30m of revenue while also providing a “negligible loss” to its full-year results.
The retailer says its current momentum means its B2C retail business is set to deliver “another year of double-digit revenue growth” while other revenue categories are expected to be “broadly flat” in the next financial year.
It expects adjusted profit before tax to continue to grow faster than sales “despite the wider economic uncertainty and cost headwinds from the government’s autumn Budget”.
AO founder and chief executive John Roberts said: “Our strong performance shows that our model is working.
“With a globally leading Trustpilot score of 4.9 from almost 750,000 reviews, and AO Five Star membership continuing to grow strongly, we’re cementing our position as the most trusted electrical retailer and are increasing our frequency and share of wallet with customers.
“AO is back to being a highly efficient growth machine; we are reaping the rewards from the execution of our strategy and 25 years of unwavering obsession with amazing customer service.
“We’re carrying good momentum into the new financial year and are pleased to be guiding to another year of double-digit revenue growth in our B2C retail business, and for profits to keep growing faster than sales.”
It was also announced that chief financial officer Mark Higgins has also taken on the role of chief operating officer.
The retailer’s full-year results are expected to be published on June 18.
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