AO said it was continuing to build momentum after a year of strong revenue and profit growth, which is now expected to sit at the top end of its previous guidance, in a pre-close trading update this morning (April 10).
Sales for the group are expected to grow 11% in the year to March 31, with a 9.5% increase in its B2C division, underpinned by market share gains across all key categories, it said.
Adjusted pre-tax profit is forecast to be in line with previously upgraded guidance, at the top end of its £45m to £50m range.
AO said this represents a near 15% year-on-year growth, demonstrating that profits are growing quicker than sales despite material cost headwinds.
The group reported it has hedging arrangements in place in advance of recent geopolitical developments, covering approximately 80% of forecast fuel usage and 100% electricity usage, which covers the full FY27 trading period.
AO founder and chief executive John Roberts said: “The numbers speak for themselves again, and I am delighted to keep doing our talking on the pitch.
“At the period end, we expect to have around £200m of liquidity. Profit is converting to cash, with free cash flow of circa £65m for FY26, up from £23m last year.
“Our shared economics strategy and membership model, built on the foundations of brilliant retail basics, continues to deliver results. We continue to build momentum, and all key metrics continue to improve, with an exciting pipeline of new initiatives ahead.
“In the coming weeks, AO will become the first company globally to reach one million Trustpilot reviews with a 4.9 rating from customers. Having founded AO 26 years ago in a small office with three people and a dream, I am incredibly proud to have reached this milestone, which is a testament to the entire team.
“To achieve that in a logistically difficult category highlights the structural advantage we have been building with world-class quality at scale. This underpins our reputation as the UK’s most trusted electrical retailer, and the value of it sits on our balance sheet at zero.
“I’d like to thank every AOer and every trading partner that has made it possible by embracing our relentless obsession with customers. In line with our values, my gran is delighted, and I hope my mum is proud!”
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