Founded in 2000 by CEO John Roberts, AO World (“AO”) is the leading online retailer of major domestic appliances (“MDA”) such as washing machines and fridges with 17% market share.

The company also sells a wide variety of small domestic appliances (“SDA”), televisions (“AV”), mobile phones, consumer electricals and laptops. With a focus on brilliant service and two-person delivery, installation and recycling, the group has received over 1m Trustpilot reviews with an impressively high average score of 4.9/5. The group has also invested in its own recycling centre.

17 Jun 2026

Record, customer-led results driving cash returns

AO has delivered record FY26 results with 11.4% revenue growth and 16.1% growth in Adj. PBT to £50.5m, slightly ahead of estimates. Moreover, in a global first, AO’s customer-led strategy has driven over 1m Trustpilot reviews with a 4.9/5 rating.

Free cashflow was an impressive £66.4m, driving over £200m liquidity, and with the business on track for consensus expectations in FY27E, AO has announced a further £20m return to shareholders.

Despite the uncertain macro-economic backdrop, the group’s operational strengths give management confidence in delivering FY27E consensus Adj. PBT expectations (£54.6m).

AO’s PER rating appears highly attractive at under 13x Cal 2027 EPS and its stock price is significantly below our 170p Fair Value per share (equivalent to a 5.5% Cal 2027 FCF yield).

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