AO World holds full-year guidance as buys photography retailer Jessops

AO World PLC on Thursday said both revenue and profit grew in the first half of its financial year, but the online electricals retailer kept its full-year profit outlook unchanged, as it plans investment spending and faces a challenging second half comparison.

AO World shares were down 6.1% to 87.30 pence early Thursday in London. The wider FTSE 250 index was down 0.7%, and AO World was the third-worst performer.

The Bolton, England-based company also said it completed the acquisition of Jessops, a high-street photography retailer, from Peter Jones. The Dragons' Den star had rescued Jessops from administration in 2013, according to the Times newspaper. AO World did not disclose the financial terms for the purchase.

AO World noted that Camera Jungle, the online camera resale site owned by Jessops, is complementary to its own musicMagpie operations, adding to AO World's "circular economy credentials".

Pretax profit is expected to be about £21.5 million in the six months that end September 30, AO World said. This would be up 20% from £17.9 million a year before. It said revenue was up 5.5%, suggesting about £618 million, compared to £585.6 million a year before.

The company will release its full interim results on November 24.

Despite the "strong first half", AO World said its full-year profit expectations remain unchanged, due to planned strategic investments and "a more challenging comparative environment in the second half".

With is annual results in June, AO World said financial 2027 pretax profit would be in line with market expectations at the time, which it cited as a range of £53.5 million to £55.8 million, up from £50.5 million in financial 2026.

AO World said it has £200 million in liquidity headroom after paying a £10 million dividend and completing half of its £10 million share buyback programme, which continues.

"There continues to be a lot of uncertainty in the world but we look forward to heading into peak trading with confidence and momentum behind us," said John Roberts, founder & chief executive officer.

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