AO World Lifts Lower End of Profit Forecast and Launches £10m Share Buyback

AO World (LON:AO.) shares surged 14% on Monday morning after the retailer lifted its profit guidance to the top half of its previous range after strong trading in the first half of its 2026 financial year.

In a pre-close update ahead of its annual general meeting on Monday, the online electricals retailer said group revenue for the six months to 30 September was expected to rise 13% year-on-year, with business-to-consumer retail sales up 11%.

On the back of this performance, AO now expects adjusted pre-tax profit for the year to come in at between £45 million and £50 million, compared with earlier guidance of £40 million to £50 million. 

The company also reiterated its forecast of double-digit retail growth for the full year.

AO World’s stock jumped more than 14% on the news, with the share price closing the session at 95.1p. On Tuesday, AO World is down around 1.8% at 93.4p.

AO said it expects a cash position of about £70 million at the half-year point, with its £120 million revolving credit facility left undrawn. 

Reflecting its stronger balance sheet, the board announced plans for the group’s first-ever share buyback programme, authorising up to £10 million of repurchases following shareholder approval at today’s AGM.

Chief executive John Roberts said: “I’m delighted that we are on track to deliver yet another period of double-digit revenue growth and a strong profit performance, whilst maintaining our globally leading customer service standards.”

He added that the company’s membership programme and expanded product range were driving performance, with further growth initiatives planned for the second half.

The company’s half-year results are due on 25 November.