AO World posts record profit of £50.5m as growth outpaces revenue
AO World has reported a record annual profit with growth of 16.1% outpacing revenue growth of 11.4%.
In the 52 weeks to 31 March, the electrical retailer’s total revenue increased to £1.267 billion as revenue in AO’s core retail business grew by 9.5% to £911 million.
Subscribe to TRBAdjusted pre-tax profit climbed to a record £50.5 million, with an adjusted profit margin of around 4% as the business moved towards a medium-term target of 5%.
During the year, AO continued to invest in its membership proposition with the guarantee that ‘members always pay less’. It also attracted over 720,000 new customers in the period.
The company revealed that it has became the first retailer in the world to exceed one million Trustpilot reviews, achieving an overall rating of 4.9 out of 5.
John Roberts, AO founder and chief executive, said: “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. And all delivered against a backdrop of rising costs.
“We’ve also announced today our intention to return a further £20 million to our shareholders, which is a reflection of the cash this business now generates and the discipline with which we allocate it.”
