Following today’s release of AO’s figures for the 12 months ending 31 March 2026; Oliver Maddison, senior retail analyst at GlobalData, a leading intelligence and productivity platform, offers his view: “AO boasted impressive results in its FY2025/26 update, driven by the addition of musicMagpie and persistent growth in its retail proposition. Total group revenue rose 11.3% to reach £1,2667m. The online electrical specialist far outclassed Currys’ 3% l-f-l growth for its year ending 2 May 2026, with its notable B2C sales growth indicative of its ability to attract new customers and capture a greater share of electricals spend from existing shoppers. Its reported profits were at the top end of its upgraded guidance (£45-£50m), with adjusted profit before tax rising to £50.5m, achieved through cost reductions from automation and outsourcing. Despite confidence in the viability of its proposition, AO warned of future uncertainty given the geopolitical and economic environment, which concerned investors and caused AO’s share price to fall by around 3% in early-morning trading despite the announcement of £20m in special dividends and share buybacks.
“AO’s B2C revenues grew by 9.5%, and it was among the best performances in the electricals sector, with growth in both product and services sales, including its Five Star membership programme. AO must ensure that its focus on enhancing services continues to drive electrical sales, treating them as complementary parts to its wider proposition. It can do this by safeguarding promotional activity, with member-exclusive discounts targeted to help it win share from competitors in areas where it underindexes, such as laptops and personal care electricals.
“Despite the launch of Switch24 (which utilises AO’s interest-free credit scheme to allow Five Star members to split the cost of a new iPhone over two years), AO did not highlight a particularly strong performance in mobile phones. The online electricals specialist instead emphasised major kitchen appliances, small domestic appliances and audio visual as its standout performers, reflecting relatively limited communication of its mobile proposition to the public. This conservative approach may have been in anticipation of the launch of its AO Mobile network, expected by the end of the month. The introduction of AO Mobile, when combined with Switch24, will give AO a highly competitive position in the mobile market and will threaten the likes of Currys’ iD Mobile. Nonetheless, this is a highly competitive category with expected entries from the likes of Lidl and Monzo, creating a more fragmented market and weakening its chances of success. AO will need to ensure that the perks of its membership scheme are clearly communicated so it can offer a convincing package to consumers in addition to competing on price.”
