The electricals retailer is growing in a sluggish market and moving into adjacent categories, while keeping a firm eye on margin.
AO World expects first-half revenue to be up 5.5% year on year, with pre-tax profit up by more than 20% to around £21.5m, according to its pre-close trading update published on 24 September 2026.
The update covers 1 April to 30 September 2026. It also confirmed that AO has completed the acquisition of specialist photography retailer Jessops, as it continues to expand beyond its core ranges. Suppliers in adjacent categories will want to track that development closely.
Growth against a soft market
Founder and CEO John Roberts said the group had delivered continued growth "against a sluggish backdrop in the wider UK retail sector." The retailer attributed the profit improvement to operational gains in its Mobile and musicMagpie businesses. It did not break out performance by product category, so the update gives no direct read on demand for small domestic appliances or electrical accessories.
Full-year profit expectations are unchanged. AO cited planned strategic investments, including an ERP programme, and a more challenging comparative environment in the second half.
Buying into adjacent categories
AO bought Jessops from Peter Jones CBE and funded the deal from existing cash. The retailer said the acquisition supports its strategy of expanding into adjacent categories to increase share of wallet. It expects Jessops to grow over the next 12 months as it applies AO's scale, traffic and operational expertise to drive efficiencies. Jessops' recommerce business, Camera Jungle, will sit alongside musicMagpie, which AO said strengthens its circular economy credentials.
Roberts described the first half as a period in which the group had sought to "both buy and build more category capability."
Margin focus and member pricing
AO said it had given more than £29m of discounts to members during the period. Roberts said a PBT margin of over 5% is the business's next milestone, backed by "clear growth and efficiency initiatives." He added that AO would continue to share more of its scale economies with members. The retailer expects to end the period with over £200m of liquidity headroom.
What suppliers should watch
The update describes a retailer with cash to invest, an appetite for new categories and a clear focus on efficiency. Suppliers of electrical accessories and housewares adjacent to AO's core ranges may find openings as the offer broadens. Existing suppliers should expect a continued emphasis on cost and value as AO pursues its margin target alongside member discounting.
AO will publish half-year results on 24 November 2026, ahead of peak trading.
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