UK electronics retailer AO World today laid out plans for its first-ever share buyback and raised the lower end of its annual adjusted pre-tax profit forecast, with the announcement sending its shares as much as 15.6% higher.
Amid sticky inflation, AO World's discounted pricing via its membership programme has helped retain customers and attract new ones, boosting demand for essential household appliances in its core consumer-facing business.
The retailer, which sells appliances ranging from tumble driers to TVs, said it expects its business-to-consumer retail revenue to rise 11% and group revenue 13% in the first half of the year.
It also said it intends to launch a share buyback programme for up to £10m worth of ordinary shares.
AO World, which reported a record annual profit in June, has been exploring the closure of its contract‑mobile division and plans to launch its own online mobile service.
Rival Curry's also reported strong summer sales this month helped by demand for air conditioners, and reaffirmed its annual forecast.
However, Curry's was among several major British retailers that wrote to finance minister Rachel Reeves in August warning that further tax increases in November's budget could hurt living standards after April's rise in wages and employers' social security contributions.
Shares of AO World were up 11.6% at 93.1 pence this morning, the biggest gainers on the FTSE midcap index.
It said it now expects pre-tax profit for the year ending March 2026 of between £45-50m, from its previous forecast range of between £40-50m.
On average, analysts expect the company to report an annual pre-tax profit of £46m, according to a company-compiled consensus.
