AO World has completed its acquisition of camera retailer Jessops from Peter Jones, using existing cash resources as it expands into adjacent retail categories.

The deal brings Jessops into AO’s portfolio alongside appliances, mobile phones, consumer electronics and Music Magpie, which AO acquired in December 2024. AO said Jessops’ specialist expertise in cameras and optical technology would give customers more reasons to shop with the retailer.

Jessops was founded in 1935 and was rescued by Jones after entering administration in 2013. The retailer subsequently entered administration again in 2019 and 2021, while its physical presence has fallen from more than 300 stores to eight.

Its latest accounts show turnover of just under £20 million for the year to September 2025, up 6.5 per cent year on year, with growth driven by online sales. The company reported a £1.1 million loss for the period.

AO said Jessops’ Camera Jungle recommerce business would complement Music Magpie, strengthening its presence in the resale and refurbishment market. The retailer expects to use its scale, website traffic and operational capabilities to improve efficiency and grow the acquired business over the next 12 months.

John Roberts, founder and chief executive of AO World, said: “I am delighted to welcome Jessops into the AO family and look forward to growing the existing business as well as integrating the category into the wider AO business.”

The acquisition was announced alongside AO’s pre-close trading update, which forecast a 5.5 per cent increase in group revenue for the six months to 30 September. AO expects profit before tax to rise by more than 20 per cent to about £21.5 million, driven in part by improvements in its mobile and Music Magpie operations.

AO said it expects to finish the first half with more than £200 million of liquidity headroom after paying a £10 million dividend in June and completing half of a planned £10 million share buyback. Full-year profit expectations remain unchanged, with the company citing planned strategic investment including its enterprise resource planning programme and a tougher comparative period in the second half.

Roberts said AO had continued to grow against what he described as a “sluggish backdrop in the wider UK retail sector”. He added that the company was entering peak trading with “confidence and momentum”, while AO expects to publish its half-year results on 24 November.

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