Online electricals firm AO World has upped its annual profit outlook and unveiled plans to boost investor returns with its first-ever shares buyback.
The retailer said group revenues in the six months to September 30 look set to be 13 per cent higher than in the same period last year.
It now expects full-year profits of between £45million and £50million, at the top end of previous guidance for between £40million and £50million.
This compares with profits of £45million for 2024-25, excluding the recently acquired Music Magpie business.
Bolton-headquartered AO World, which is holding its annual general meeting on Monday, said it planned to buy back up to £10million in shares, marking a first for the group.
John Roberts, AO’s founder and chief executive, said: “Our strategy as set out at our full year results is working and we have an exciting pipeline of further value to deliver for customers in the second half.”
Delivering profits: AO World said group revenues in the six months to September 30 look set to be 13% higher than in the same period last year
The group will report first half figures on November 25.
AO World outlined plans in June to cut costs by using artificial intelligence (AI) and to offshore more work overseas to help offset a soaring wage bill.
The group revealed late last year that it was facing around an extra £8million in costs a year from April’s higher national insurance contributions and minimum wage rise.
While the group said in the summer that it had no plans to cut jobs and was recruiting staff, it admitted that some of these would be likely to be outside of the UK.
It notched up record annual profits in the year to March 31, reporting a 32 per cent rise in underlying pre-tax profits as like-for-like sales lifted per cent to £1.11billion.
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