UK's AO World FY26 revenue meets estimates; announces special dividend and buyback

AO World

Today 07:13

Overview
UK electrical retailer's FY26 revenue rose 11.4%, meeting analyst expectations
Pretax profit for FY26 slightly beat analyst expectations
Company to return £20 mln to shareholders via special dividend and buyback

Outlook
AO World expects FY27 PBT in line with current market expectations
Company says external environment remains uncertain, citing geopolitical volatility and inflationary pressures
AO World maintains medium-term objective of achieving a 5% PBT margin

Result Drivers
MARKET SHARE GAINS - Co said revenue growth was driven by increased market share in major domestic appliances and other key categories
MEMBERSHIP AND CUSTOMER GROWTH - Co said improved renewal rates, higher member spend and 720,000 new customers supported results
COST DISCIPLINE AND EFFICIENCY - Co said profit growth outpaced revenue due to cost discipline, automation, and offshoring

Company press release: ID:nRSQ5647Ia

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Meet
GBP 1.27 bln
GBP 1.27 bln (4 Analysts)
FY Pretax Profit
Slight Beat*
GBP 50.50 mln
GBP 50.48 mln (4 Analysts)
FY Adjusted Pretax Profit
 
GBP 50.50 mln
 
FY Basic EPS
 
GBP 0.06
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer & electronics retailers peer group is "buy."
Wall Street's median 12-month price target for AO World plc is GBp150.00, about 56.3% above its June 16 closing price of GBp96.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)