AO World has posted a 30% jump in H1 adjusted pre-tax profit to £17m in the six months to the end of September.

This growth delivered a profit-before-tax margin of 3.3% for the group, up on 2.7% in the same period last year.

AO reported a strong performance in its B2C retail business, which made a return to double-digit growth at 13% on last year, to total £382m.

The electrical goods retailer’s total revenue also grew to £512m, a level up 6% on the same period last year.

“The wet summer weather meant we sold fewer fridges and air conditioning units and more tumble driers than we had planned,” said AO chief executive, John Roberts.

“Our laser focus on costs and efficiency remains which ensures, as planned, that profit grew faster than sales on the growth we’ve delivered.”

The figures follow AO’s recently announced deal to acquire the online second-hand retailer, musicMagpie, for an estimated £10m.

The move is part of an effort by the AO board to expand its mobile and consumer technology offering.

Investment analyst at AJ Bell, Dan Coatsworth, commented: “After a rollercoaster ride for shareholders since AO joined the stock market more than a decade ago, which took in the highs of post-pandemic demand and the lows of unsuccessful overseas ventures, investors want to see evidence of stability.

“Today’s numbers come ahead of the completion of the musicMagpie acquisition which boosts its ESG credentials via greater recycling activities and expands its footprint in areas like mobile. The market will be watching closely if this is a step too far outside its comfort zone – or an opportunity to bring its logistics capabilities to the table to help make this business a real asset.”

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