AO World has recorded a 16.1% increase in its profit before tax, totalling £50.5m in the year to 31 March, which is a record for the firm.

The electrical retailer reported that in this period, its revenue jumped by 11.6% to just over £1.26bn, while its B2C revenue increased by 9.5% to £911m.

The group said this is underpinned by market share gains across all key categories in which it operates. It also ended the year with net funds of £16.4m.

Over this period, AO has attracted over 720,000 new customers across the year, which it said is fuel for its “flywheel in the future”.

Furthermore, the firm stated that it has become "the first retailer in the world to exceed one million Trustpilot reviews", with an overall rating of 4.9 out of five.

It added that it has also continued to make progress in its recommerce and recycling following its acquisition of musicMagpie, which it said is now “run rate profitable” on an annualised basis.

In its outlook, AO stated that it is confident in its ability to deliver its profit expectations for the current financial year, despite the external environment remaining uncertain due to ongoing geopolitical volatility and continued inflationary pressures.

The retailer said its confidence is supported by the "strength of its value proposition" and "the non-discretionary element of much of its product range", as well as its cost management and technology investment.

AO has also announced that it intends to return £20m to its shareholders via a £10m special dividend and a new £10m share buyback.

Founder and chief executive at AO, John Roberts, said: "These results represent an incredible team effort with revenue up 11% to £1.27bn, profit up 16% to a record £50.5m, and the strongest balance sheet in our history. And all delivered against a backdrop of rising costs.

"AO Membership continues to go from strength to strength and there's more to come with the launch of Switch24 and AO Mobile, which combined, are the best way to get the latest iPhone paired with an all-you-can-eat SIM at a market-leading price. It's scaled economies shared and is exactly what our members want at a time when every pound counts.

"None of this is the work of one person. It's down to every AOer and every partner who shares our obsession with looking after customers. I started AO 26 years ago with a small team and a big idea and I'm as excited about the next 26 as I've ever been."

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