Electricals retailer AO has said its balance sheet is the “strongest in our history” as profits and sales in the last financial year soared.
For the year ending March 31, 2026, AO reported a 16.1% increase in adjusted profit before tax to “a record” £50.5m with a margin of 4%, and an 11.4% jump in revenues to over £1.3bn.
The retailer said it ended the period with £201.3m of total liquidity and free cash flow of £66.4m, “driven by strong operating performance and efficient working capital management”.
During the period, AO said it became the first retailer globally to “exceed 1 million Trustpilot reviews” and attracted over 720,000 new customers.
It continued to invest in its membership proposition and launched AO Mobile. Starting with a trial, AO said it would be “expanded in further phases” with a full launch being targeted in the first quarter of FY27.
In terms of outlook, AO said: “The external environment remains uncertain, with ongoing geopolitical volatility and continued inflationary pressures impacting both consumers and input costs across the economy.”
However, AO insisted it remains confident in achieving its medium-term objective to deliver a 5% profit-before-tax margin and profits in line with current market expectations.
AO founder and chief executive John Roberts said: “These results represent an incredible team effort with revenue up 11% to £1.27bn, profit up 16% to a record £50.5m, and the strongest balance sheet in our history, all delivered against a backdrop of rising costs.
“We’ve also become the first retailer in the world to exceed 1 million Trustpilot reviews at an overall rating of 4.9 out of 5. In a category as demanding as ours, that trust is hard-won and almost impossible to copy. It sits nowhere on our balance sheet, yet it’s among the most valuable things we own.
“AO membership continues to go from strength to strength and there’s more to come with the launch of Switch24 and AO Mobile, which combined, are the best way to get the latest iPhone paired with an all-you-can-eat SIM at a market-leading price. It’s scaled economies shared and is exactly what our members want at a time when every pound counts.
“We’ve also announced today our intention to return a further £20m to our shareholders, which is a reflection of the cash this business now generates and the discipline with which we allocate it.
“None of this is the work of one person. It’s down to every AOer and every partner who shares our obsession with looking after customers. I started AO 26 years ago with a small team and a big idea, and I’m as excited about the next 26 as I’ve ever been.”
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