AO World (LSE:AO.) said it expects FY27 profit before tax to be in line with current market expectations, reporting adjusted PBT up 16.1% to a record £50.5m in the year ended 31 March alongside revenue of £1.27bn, up 11.4% year on year.
Cash generation underpinned the result, with free cash flow of £66.4m (2025: £26.3m) and total liquidity of £201.3m at the period end, while adjusted PBT margin was around 4% as the group progresses towards a medium‑term 5% target.
AO said its B2C retail operations drove growth with over 720,000 new customers and a Trustpilot rating above 4.9 from more than one million reviews, the mobile business has returned to profit after restructuring, and musicMagpie is now annualised run‑rate profitable following warehouse consolidation and a Timpson trade‑in tie‑up.
"These results represent an incredible team effort with revenue up 11% to £1.27 billion, profit up 16% to a record £50.5 million, and the strongest balance sheet in our history," said John Roberts, Founder and CEO.
The company warned that the external environment remains uncertain but reiterated its confidence in delivering FY27 PBT in line with market expectations as at 28 May and in achieving its medium‑term 5% PBT margin objective.
Record results measured with caution
Interactive Investor's head of markets, Richard Hunter, struck an upbeat but measured tone on AO World's results, describing them as "record" whilst noting the electricals retailer is tracking ahead of its own guidance on both revenue and profit.
The analyst pointed to the recommerce unit, boosted by the musicMagpie acquisition, as a standout performer, which now accounts for more than 9% of group sales, and the mobile division's shift toward profit generation and over 720,000 new customer additions in the period added further colour to the bull case.
Hunter's did, however, measure with some caution, citing geopolitical volatility that's feeding inflationary pressure, and the potential for softness in consumer sentiment.
