Strong 1H has resulted in management narrowing its PBT guidance range to the top half After a strong 1H performance to date, management has reiterated its FY26 revenue guidance of double-digit B2C growth but has narrowed its FY26 PBT guidance range. FY26 PBT is now expected to be in £45m to £50m range (previous guidance £40m to £50m). This compares to INVe £47m and company-compiled consensus of £46m. For 1H (to end September), B2C Retail revenues are expected to increase by 11% YoY and Group revenue is expected to be up 13% YoY. Period end net cash is expected to be c£70m.  As a result of its strong cash position, AO management has announced today its first £10m share buy-back programme, rather than a dividend. Valuation undemanding AO is well placed to benefit from any improvement in the macro backdrop from falling interest rates and better consumer sentiment. There is also potentially a more positive electricals category tailwind coming, driven by the natural replacement cycle (typically 5-6 years) and more product innovation underway. Its own strategic actions, such as its Five Star membership programme and broader product range, are helping to drive repeat and new customers. Management signalled at the last results that its focus was now on improving unit economics and driving operational leverage through its existing platform rather than further acquisition, with a longer-term 5%+ PBT margin (FY25 3.8%). There is no update on its mobile business which is a drag on profits. Management is reviewing its post pay connection business and noncore websites, which will either result in a sustainable profitable solution with the network operators or an elimination of losses through closure. The scale of the loss being carried has not been disclosed, but a resolution would be a positive The shares are trading on a CY26E PE of c12.6x. Next news: 1H results 25th November