AO World PLC (LSE listed) – Half Year Results

2025-11-25 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On November 25, 2025, AO World PLC announced its interim financial results for the six months ending September 30, 2025. The company reported robust financial performance with significant growth in revenue, profit, and cash generation.

For the period, AO World PLC achieved a total revenue of £585.6 million, marking a 14% increase from £512.1 million in the same period last year. The business-to-consumer (B2C) retail revenue rose by 12% to £423 million, driven by market share gains across all key categories. This growth was supported by the expansion of their product range and increased advertising expenditure. However, business-to-business (B2B) retail revenue saw a decline of 22.8% year-on-year, attributed to strategic decisions to exit less profitable contracts.

Operating profit for the period increased by 7% to £18 million, while profit before tax (PBT) rose by 10% to £18 million, despite facing inflationary pressures amounting to approximately £4 million due to increases in the National Minimum Wage and National Insurance costs. Basic earnings per share (EPS) improved by 15%, reaching 2.22 pence compared to 1.94 pence in the previous year.

AO World PLC also reported a significant increase in free cash flow, which surged by 306% to £57 million, up from £14 million in the prior year. This was attributed to strong operating performance and a temporary improvement in working capital. The company ended the period with net funds of £65 million, a 70% increase from £38 million in the previous year, and total liquidity of £200 million.

The company continues its £10 million share buyback program, with approximately £1 million worth of shares purchased by the end of the period. This program is expected to be completed by March 2026.

Looking ahead, AO World PLC has upgraded its full-year profit before tax guidance to be around the top of the previously narrowed range of £45 million to £50 million. This upgrade reflects the continued positive trading performance, which has slightly exceeded previous expectations despite ongoing inflationary challenges.

In summary, AO World PLC has demonstrated strong financial growth in the first half of the year, with significant increases in revenue, profit, and cash flow. The company’s strategic initiatives, including the launch of the Switch24 program and improvements in their membership proposition, have contributed to these positive results. The company remains confident in its upward trajectory and continues to focus on delivering value and service to its customers.

Original Announcement

Title: INTERIM RESULTS
Date: 2025-11-25
Source: London Stock Exchange