The head of AO World calls on the next government to use “great minds” in business

The head of online electrical goods store AO World has urged the next government to capitalize on a “tsunami of goodwill” among business leaders and engage with companies to shape policy.

John Roberts, founder and chief executive of AO World, told the PA news agency that the party that wins the July 4 general election should convene a meeting of business bosses from across the UK and give them the opportunity to help tackle a range of issues such as property tax reform and apprenticeship tax.

He was a vocal critic of the apprenticeship levy, claiming it had “failed” and that its complexity did not contribute to the goal of increasing the number of school leavers taking up apprenticeships.

He said the next government needed to talk to businesses about how to align the levy with its intended purpose, as well as draw on the sector’s experience on issues and policies.

He said he had spoken to a number of chief executives who would be willing to help the next government.

“Let’s all gather in one place and give business leaders the opportunity to help,” he said.

“There are some great minds in the UK who can help the government.”

His comments came after AO World said it was targeting double-digit sales growth in the coming financial year, after almost tripling annual profit.

The group reported a 186% rise in pre-tax profits to £34.3m for the year to March 31.

This result came despite a 9% decline in sales to £1.04 billion following cost-cutting measures and eliminating revenues contributing to unprofitable sales.

However, it helped improve financial results, and profits were better than previously expected.

The recent increase in turnover was driven by rising demand for TVs in the wake of the Euro 2024 football tournament, with June sales up 54% year-on-year.

Tumble dryer sales were also boosted during the winter months by wet weather.

Late last year, AO World raised its profit forecast to between £28m and £33m.

The company added that despite “continued macroeconomic challenges”, it was confident of achieving double-digit sales growth in 2024-25, with underlying pre-sales profits rising to between £36 million and £41 million.

Roberts said the group was now a “much simpler and more efficient business”.

“We are currently focused on delivering profitable revenue growth with the ambition of double-digit revenue growth in 2024-2025,” he said.

However, the group said it was hit by a “particularly difficult year” for the mobile phone market, with consumer demand falling, which led to the division reporting losses for the year.

It hopes to change divisions after purchasing affordable sitesmobiles.co.uk and buymobiles.net to strengthen its position in the industry.

The company added that it intends to restart reinvestment in the coming year to support sales growth across the group “at the right pace and at the right time”.