Annual Report 2025
View the 2025 Annual Report Click HereRecord £45m LFL* Adjusted PBT, ahead of original guidance 12% sales growth in core B2C Retail business
Year in Review
We have continued to deliver exceptional service to our customers resulting in significant revenue growth and profitability.
Group revenue has grown over 9% in the year, with our underlying retail business delivering double digit growth. Our impressive trustpilot rating of 4.9/5, on over 750,000 reviews, demonstrates that our large customer base is consistantly delighted by our service.
AO’s Founder and Chief Executive, John Roberts, said:
“Our 25th year in business has been our best yet. We’ve delivered a record profit before tax performance, significantly grown our sales, and continued to delight our ever-growing customer base with trusted, outstanding service.
“One of the key drivers of this performance is our Five Star membership programme, which is giving our customers even more reasons to keep coming back to us. We’re also broadening our product range beyond the Major Domestic Appliance category that we’re best known for. We added over 1,500 new products during the year, which means that categories such as fitness, drones, cameras and health and beauty are all now available at fantastic prices through AO.
“And the really great news is that there’s so much more for us to go after, with a total addressable market of over £28bn. Given the size of that prize, the fantastic momentum that we’re seeing across the business, and our awesome team of AOers, I couldn’t be more excited about the next 25 years. In many ways, we’re only just getting started.”
Financial highlights
- LFL Group revenue grew 7%, to £1.108bn with core B2C Retail revenue up 12% to £832m. Growth was driven by the expansion of our Five Star membership offering as well as the broadening of our product range to c9,000 products. musicMagpie contributed an additional £30m revenue to the Group for the period.
- As planned, LFL adjusted profit before tax grew faster than revenue – up 32% to £45m -with LFL adjusted PBT margin of 4.1%, making good progress towards our medium-term target of 5%.
- Free cashflow of £23m (2024: £21m) driven by strong operating performance and efficient working capital management. The Group ended the year with net funds of £23m after the c.£35m cash costs relating to the musicMagpie acquisition and the funding of the EBT to purchase shares to satisfy share schemes.
- The Revolving Credit Facility was increased and extended with the total facility increasing from £80m to £120m which remains undrawn and now expiring in October 2028.
See our Annual Report for further details
* Like-for-like basis relates to the continuing operations of the Group, excluding the post acquisition revenue and PBT of musicMagpie.
