AO World PLC (LSE:AO.) has posted a solid set of interim results, reporting higher revenues and profits despite inflationary “headwinds.”
For the six months ending 30 September 2025, the Bolton-based electricals retailer generated £586 million in revenue, marking a 14% rise compared with the same period last year.
Operating profit and profit before tax each came in at £18 million, increases of 7% and 10% respectively. The company noted that recent rises in the national minimum wage and National Insurance added £4 million to its cost base during the period.
AO also highlighted progress at its musicMagpie subsidiary, where losses have been reduced from £6 million at acquisition to an expected £2 million for FY26, with the business on track to reach a breakeven exit run-rate. This follows what the company described as “significant progress in integrating, streamlining and simplifying” the offer.
In September, AO narrowed its profit forecast to a range of £45 million to £50 million. It now expects FY26 profit before tax to land at the top end of that range. The retailer ended the half with £200 million in total liquidity.
The company also launched Switch24, a membership product giving customers access to the latest Apple phones—starting with the iPhone 17 from £17 per month, upgraded every two years. AO said its Five Star membership programme also delivered improved renewal rates, higher spending and a larger share of wallet during the period.
“These numbers speak for themselves, and it’s been another positive six months of operational and financial progress,” said founder and CEO John Roberts.
“I am incredibly excited to have launched Switch24… this is a first in the UK market. It is a great example of AO continuing to disrupt and innovate on behalf of our members to bring them the latest products at the lowest prices.
“It’s this kind of value and service that is cementing our position as the UK’s most trusted electricals retailer with our world class 4.9 / 5 Trustpilot score on over 850,000 reviews.
“Our strategy is working and we’re as confident as ever about AO’s upwards trajectory. As always, I’d like to thank every single one of our awesome AOers for their continued focus and dedication to giving our customers the best possible value.”
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