Last checked at 29 Jun 2009 07:00
FOR RELEASE
7.00 AM
29 June 2009
ASOS plc ("Group" or "ASOS")
UK's leading online fashion store
Final Results for the year ended 31 March 2009
Summary results
| £'000s | 2008/09 | 2007/08 | Increase |
| Group revenues | 165,395 | 81,044 | 104% |
| Gross profit | 71,699 | 37,284 | 92% |
| Operating profit* | 13,935 | 6,962 | 100% |
| Profit before tax* | 14,125 | 7,311 | 93% |
| Earnings per share* (fully diluted) | 12.8p | 6.6p | 94% |
| Net cash | 13,587 | 10,369 | 31% |
*2007/08 included a warehouse provision of £934,000
Key business highlights:
Record sales, profits and earnings per share
Successful launch of ASOS Outlet, Designer Brands at ASOS and Little ASOS
Significant own-label expansion and launch of ASOS Maternity and ASOS Black
Number of active customers up 68% year on year to 1.2 million at the end of May 2009
International sales up 303% to £32.2m
Current trading and outlook:
The online retail market continues to outperform the overall retail market
Positive start to current year with sales for the 13 weeks to 26 June 2009 +52% year on year
Significant opportunity for international expansion
Board confident of another year of strong growth
For further information:
ASOS plc
Nick Robertson, Chief Executive Tel: 0207 756 1000
Nick Beighton, Finance Director
Website: www.asos.com
Cubitt Consulting
Brian Coleman-Smith / Nicola Krafft Tel: 020 7367 5100
JPMorgan Cazenove
Luke Bordewich / Gina Gibson Tel: 020 7588 2828
Numis Securities
Alex Ham / Mark Lander Tel: 020 7260 1000
Background note
ASOS is rapidly becoming the market leader in the UK online fashion world. The business continues to generate profitable growth despite continued investment in operational resources and enjoys strong and increasing barriers to entry.
Established in June 2000 and admitted to AIM in October 2001, ASOS is the UK's largest independent online fashion and beauty retailer and offers over 24,700 branded and own label product lines across womenswear, menswear, footwear, accessories, jewellery and beauty with approximately 1000 new product lines being introduced each week.
Aimed primarily at fashion forward 16-34 year olds, ASOS attracts over 5.4 million unique visitors a month and as at 31 May 2009 had 2.4 million registered users and 1.2 million active customers (defined as having shopped in the last 6 months). www.asos.com
ASOS plc ("Group" or "ASOS")
UK's leading online fashion store
Final Results for the year ended 31 March 2009
Chairman's statement
It gives me great pleasure to present another outstanding set of results for ASOS plc. Against the worst economic climate for retailers in recent memory, the Group has produced top line growth of over 100%, has again increased its market share and has delivered outstanding profit growth.
It highlights the strength of the internet as a retail channel and its potential position in the retail landscape of the future.
The outlook for 2009/10 remains uncertain. Whilst some indicators are showing positive signs, the effect of unemployment, job security and consumer debt has yet to be fully felt. Therefore, we have been more conservative in our planning for the 2009/10 financial year.
That said, the future of online clothing retail remains bright, with the internet set to take an ever increasing share of the clothing market. ASOS is ideally positioned to continue to exploit this, both in the UK and increasingly internationally, and we remain confident that this will be another year of strong growth.
Management incentive plan
During the 2009/10 financial year, the Remuneration Committee of ASOS will be implementing a new management incentive plan for Executive Directors and selected other key employees of the Group.
The purpose of the plan is to incentivise and reward the management of ASOS for superior performance through the achievement of challenging Earnings per Share ("EPS") growth targets and to align the interests of management with those of shareholders through a demanding Total Shareholder Return ("TSR") condition. Both the EPS and TSR conditions will have to be met for awards to vest.
Dividend
Sustaining the levels of growth delivered to date has required and will continue to require significant capital investment in the Group. The Board believes it is in the best interests of shareholders to continue to exploit the significant growth opportunities available to the business and consequently, does not propose paying a dividend this year. This policy remains under constant review.
People
On behalf of the Board I would like to welcome our new employees who joined us during the year and to thank the team for their outstanding contribution to the ongoing success of ASOS. During the year ASOS won 17 industry and consumer awards, an achievement of which they can all be very proud.
I would also like to welcome Nick Beighton, who joined us from Luminar Group Holdings plc, as Finance Director and Company Secretary and wish Jon Kamaluddin all the best in his new role as International Director.
Lord Alli
Chairman
Chief Executive's statement
Business review
I am pleased to report another exceptional year for ASOS. Despite the challenging economic conditions, sales grew by 104% to £165.4m and profit before tax increased by 93% to £14.1m.
We continued our programme of investment throughout the year, delivering a number of product initiatives whilst building our team and infrastructure to support these superior levels of growth. The continued popularity of internet shopping provided a strong back-drop and, with the weakness in Sterling, our international sales took a significant step-up.
This year has started positively, with sales for the 13 weeks to 26 June 52% ahead of the same period last year. This compares to an increase of 95% for the same period last year. Clearly we are facing much tougher comparables, and there is now some evidence to suggest that the rate of growth in online sales has begun to moderate. In May 2009, the Interactive Media in Retail Group (IMRG) reported an 8% year on year growth in clothing sales, the lowest year on year increase since the index was launched nine years ago.
That said, according to a report by Verdict the percentage of clothing bought on line is expected to double in the next 3 to 4 years, from 5.7% at the end of 2008 to over 11% by 2013. At ASOS, we remain committed to winning the online fashion race. According to Hitwise, ASOS remains the second most visited apparel and accessories site on the internet in the UK and in May 2009, we became a top 10 UK e-commerce site for the first time, coming in 10th place, a rise of eight places on the year. We will continue our programme of investment, albeit at more conservative levels in the short term, in order to exploit the opportunities that exist both in the UK and internationally.
| KEY PERFORMANCE INDICATORS | 2008/09 | 2007/08 | Increase |
| Sales (£'000) | 165,395 | 81,044 | 104% |
| Retail margin (excludes 3rd party revenues and delivery) | 46.3% | 47.6% | ― |
| Average basket value (£, inc. VAT) | 59.5 | 53.0 | 12% |
| Average units per basket | 2.58 | 2.54 | ― |
| Average selling price per unit (£, inc. VAT) | 23.09 | 20.89 | 11% |
| Returns % to sales (by value) | 26.0% | 26.1% | ― |
| % International sales | 19.5% | 10.0% | ― |
| Number of orders ('000) | 3,979 | 2,235 | 78% |
International
Our international business has grown strongly over the year and now represents 19% of our sales, up from 10% in 2007/08. Sterling's weakness, particularly against the US Dollar and the Euro, has assisted with this growth as has an increase in marketing activity in Northern Europe and the US. During the year we increased the number of countries that we ship to from 34 to 58. Our top five performing countries outside the UK were Ireland, Denmark, Sweden, France and the US.
The Board believes that international expansion represents the largest growth opportunity open to ASOS. Accordingly, Jon Kamaluddin was appointed International Director in April 2009. Jon is responsible for developing and implementing our international strategy.
We will continue to add to the number of countries that we ship to, we will introduce flat rate shipping charges and we will increase our digital marketing activity. Ultimately we will introduce stand alone, country specific, ASOS sites.
During the first phase of our international expansion all orders will be fulfilled from our UK warehouse. This will enable us to offer the full ASOS range of over 20,000 lines without introducing significant additional stock risk. This approach allows us to build scale in each local market ahead of significant infrastructure investment.
Delivering incredible choice
During the year, our product ranges grew by 157%, resulting in 21,300 options on site at the end of March 2009 (up from 8,300 at the end of March 2008). As at 20 June 2009, there were 24,700 options on the ASOS website, up from 12,260 a year prior. We anticipate that we will extend this to approximately 30,000 options for the Autumn / Winter season.
In September 2008 we launched ASOS Outlet, a dedicated shop within ASOS selling separately sourced, last season's brands at up to 70% off. In February 2009, we launched Designer Brands at ASOS and Little ASOS (Childrenswear). Our own label ranges were also extended with the introduction of Maternity and ASOS Black, a premium range. We plan to launch an own label childrenswear range and an own-label plus size range later in the year.
We welcomed a number of new brands to the site including G-Star, Reiss, Warehouse and Polo Ralph Lauren and we look forward to introducing both Gap and Mango in August 2009. This takes the total number of brands now represented on ASOS to 820 compared to 600 12 months ago.
Delivering uncompromising presentation
The website received a complete overhaul in March 2009 and we introduced a number of new navigation features to enable quick and easy browsing of the extended product ranges. We also introduced a 360 degree view of all shoes and accessories and we introduced catwalk for menswear and for ASOS Outlet.
Our 20 biggest brands are now represented by a 'shop in shop' providing a rich brand experience for our customers and a unique distribution platform for our brand partners.
Delivering impeccable service
Following considerable investment in new warehouse and carrier management systems, we will shortly be introducing a number of new service propositions. Our next day delivery service will be extended allowing customers to place orders up to 6.00pm. This includes a Saturday delivery for orders placed on a Friday. We will also be introducing a super saver option and premium 'same day' service within London. Today, approximately 85% of our orders are trackable.
Community and Social media
In 2008 we joined the conversation with customers through various social media, starting official ASOS pages on Facebook, MySpace and Bebo. On Twitter, our approach was slightly different: in addition to officially providing real time News & Offers, Customer Care and Service Updates there are 55 members of the ASOS team across various departments actively talking to customers. This more immediate and personal approach is resonating with our customers and we now have the largest Twitter following of all UK retailers. We have also introduced ASOS Life, which allows customers to talk to each other and key people within ASOS.
Investing in infrastructure
Over the past year, we have invested in systems to support our back office operations of buying, merchandising and fulfilment, recently installing a new warehouse management system at our Hemel Hempstead warehouse. This system will support our increasing range size, international expansion, as well as our demands for advanced delivery and returns options.
During the next 12 months we plan to continue our investment in systems (focusing on merchandise management and stock planning) and will further develop our website systems in preparation for our international expansion.
Subject to further investment in storage and handling equipment, our site in Hemel Hempstead is capable of supporting annual sales of approximately £350m.
Third Party revenues
We have strengthened the team responsible for deriving revenue from advertising banners, inserts, list sales and display advertising in our magazine. Consequently, after what was a somewhat disappointing year in this area, we expect third party revenues to grow in the coming year.
Summary and outlook
We are firmly established as the UK's premier online fashion business and I remain positive about the outlook for ASOS. First quarter sales are growing at 52%, an exceptional performance, given the current economic climate. It is clear that the structural shift to online continues and I believe that ASOS is ideally placed to exploit it. Moreover, international expansion is a key opportunity for ASOS and I expect our international business to grow substantially in the years to come.
With three-quarters of the financial year to go, including the key Christmas period, it is too early to assess whether our current performance will continue for the full year. That said, I believe ASOS can look forward to another year of strong progress and development.
Nick Robertson
Chief Executive
Finance Director's Review
The year ending March 2009 was another excellent year for ASOS with sales more than doubling and pre-tax profit increasing to £14.1 million, up 93% from £7.3 million in the financial year 2007/08.
Revenues
An analysis of our revenues is shown below:
| £'000s | 2008/09 | 2007/08 | Increase |
| Retail sales | 149,343 | 71,685 | 108% |
| Delivery receipts | 15,084 | 8,117 | 86% |
| Third party revenues* | 968 | 1,242 | -22% |
| Group revenues | 165,395 | 81,044 | 104% |
*Advertising revenues
Strong retail sales, up 108%, were driven by a combination of higher customer traffic, enhanced product choice and compelling customer promotions. The sales growth rates were evenly split over the year. Delivery receipts increased less strongly than retail sales, as we offered a range of delivery incentives over the Christmas trading period.
We saw a disappointing performance in third party revenues, which declined 22% over the year. This area of our business has now been strengthened significantly to address this performance going forward.
Segmental analysis of revenues:
| £'000s | 2008/09 | 2007/08 | Increase |
| UK | 133,165 | 73,044 | 82% |
| International | 32,230 | 8,000 | 303% |
| Group revenues | 165,395 | 81,044 | 104% |
Our revenues from international territories have grown by 303% over the last year, assisted by a weaker Sterling against the Euro and US Dollar. The largest sales territories outside the UK are Ireland, Denmark, Sweden, France and the US.
Gross profit
Our gross profit increased 92% on the prior year, and the Group gross margin achieved was 43.3% (2007/8: 46.0%). The enhanced branded mix and promotional investment drove a 130 basis point dilution in the retail margin. Additionally we offered our customers several free delivery periods over the Christmas trading period, which, although offering better value for our customers and incremental cash, diluted our percentage gross margin. This movement accounted for most of the decline in the Group gross margin.
During 2009/10 we expect a further easing of the Group gross margin as a result of a continued increase in the mix of branded versus own label products and increased sourcing costs resulting from adverse foreign currency movements.
Operating costs
Operating costs increased by 91% to £57.8m:
| £'000s | 2008/09 | 2007/08 | Increase |
| Payroll and staff costs | 22,298 | 10,279 | 117% |
| Warehousing | 15,566 | 9,992 | 56% |
| Marketing | 6,430 | 4,226 | 52% |
| Production | 1,764 | 891 | 98% |
| Other operating costs | 9,856 | 3,954 | 149% |
| Depreciation | 1,850 | 980 | 89% |
| Operating costs | 57,764 | 30,322 | 91% |
| % of sales | 34.9% | 37.4% | -250bps |
During the year, we invested again in recruiting people across the Group (including a significant strengthening of senior management), resulting in a 117% increase in payroll and staff costs. Our headcount at the end of the year (excluding the logistics team which is outsourced) amounted to 441 people, up from 222 at the end of the last financial year.
Warehouse costs rose by 56% to £ 15.6m, but delivered greater productivity year on year. This operating cost ratio reduced from 11.1% last year (excluding the warehouse provision) to 9.4% in 2008/09.
Marketing costs increased by 52% to £6.4m. These costs include the ASOS magazine production, direct marketing, creative and PR costs. The largest element of this expenditure relates to the production of the magazine. Cost growth is this area was substantially lower than sales growth due to the timing of the Easter edition and a more targeted mailing approach during the financial year.
Production costs were previously included in marketing costs and have been split out separately for this financial year. The costs relate to preparing, photographing, editing and placing product images on the website.
As a result of the significant increase in the number of lines introduced to our website, production costs increased 98% to £ 1.8m.
Other costs include the head office running costs, IT infrastructure and legal and professional fees. During the course of the year there were a number of investment step changes that have precipitated a higher running cost particularly in improving the system infrastructure and software. The high growth rates experienced in the overseas territories has led to a number of one-off costs relating to managing the legal and fiscal environment.
A key element of our financial strategy for the 2009/10 financial year will be to maximise the efficiency from our operational resources invested in the business while continuing to invest in supporting growth where necessary.
Operating profit
Operating profit for the financial year 2008/09 increased by 100% to £13.9m. The operating margin weakened slightly from 8.6% in 2007/08 to 8.4% in 2008/09. The 270 basis points gross margin decline was therefore largely offset by an improvement in operating cost ratios.
Finance income
While our cash balance increased during the financial year by £3.2m, the financial income derived from these balances declined from £0.35m in 2007/08 to £0.27m in 2008/09 as a result of lower interest rates.
Interest in joint venture
In September 2008, we acquired a 50% stake in a business called Crooked Tongues Ltd. for a nominal sum. Our share of losses for the first six months of this start-up entity was £78,000. The business website, www.crookedtongues.com, is a leading authority in trainers and sneakers. This investment allows us to participate in sales from an additional customer segment.
Taxation
The effective tax rate for the group was 29.1%, 110 basis points above the UK corporation tax rate of 28.0%. Going forward, we expect the effective rate of tax to be maintained around 1% ahead of the statutory rate.
Earnings per share
Fully diluted earnings per share grew by 94%.
Capital expenditure
Capital expenditure during the year amounted to £ 8.2m against £ 4.7m in the prior year:
| £'000 | 2008/09 | 2007/08 |
| IT | 4,781 | 944 |
| Warehouse | 2,749 | 2,942 |
| Office fixtures and fit-out | 670 | 854 |
| Total | 8,200 | 4,740 |
During the year we commenced our IT strategy of migrating to tier 1 system and software solutions. Our capital expenditure was directed towards delivering an improved warehouse management system, more robust data centre and better management information systems.
We anticipate that our capital expenditure in the 2009/10 financial year will be approximately £11m and will be deployed in a similar profile to the 2008/09 financial year spend.
Cash flow and net cash
The Group ended the financial year with a net cash position of £13.6m, up from £10.4m at the end of March 2008. Major sources of cash inflow consisted of £15.8m of EBITDA, trade payables of £10.6m and other creditors of £4.2m.
During the year, the Group spent £1.9m funding the employee benefit trust (EBT). Share options under the Group's share option schemes were exercised during the period, raising £0.3m.
All of the Group's investments continue to be funded from operating cash flow. Surplus funds are invested in short-term deposits with the objective of maximising fixed interest rate returns whilst providing the flexibility to fund ongoing operations. It is not the Group's policy to engage in speculative activity or to use complex financial instruments.
Nick Beighton
Finance Director
ASOS PLC
CONSOLIDATED INCOME STATEMENT
for the year ended 31 MARCH
_______________________________________________________________________________________
| 31 March | 31 March | ||||
| 2009 | 2008 | ||||
| £'000 | £'000 | ||||
| Revenue | 165,395 | 81,044 | |||
| Cost of sales | (93,696) | (43,760) | |||
| Gross profit | 71,699 | 37,284 | |||
| Administrative expenses | (57,764) | (30,322) | |||
| Operating profit | 13,935 | 6,962 | |||
| Share of post tax losses of joint venture | (78) | - | |||
| Finance income | 268 | 349 | |||
| Profit before tax | 14,125 | 7,311 | |||
| Income tax expense | (4,116) | (2,258) | |||
| Profit for the year from continuing operations | 10,009 | 5,053 | |||
| Profit for the year | 10,009 | 5,053 | |||
| Earnings per share | |||||
| Basic | 13.6p | 6.9p | |||
| Fully diluted | 12.8p | 6.6p | |||
ASOS PLC
CONSOLIDATED BALANCE SHEET
for the year ended 31 MARCH
_______________________________________________________________________________________
| | | | | | |
| | | 2009 | | 2008 | |
| | | £’000 | £’000 | | £’000 |
| Non-current assets | | | | | |
| Goodwill | | | 1,060 | | 1,060 |
| Property, plant and equipment | | | 11,578 | | 5,590 |
| Interest in joint venture | | | 162 | | - |
| Deferred tax asset | | | 3,562 | | 2,876 |
| | | | | | |
| | | | 16,362 | | 9,526 |
| | | | | | |
| Current assets | | | | | |
| Inventories | | 28,085 | | | 11,694 |
| Trade and other receivables | | 3,404 | | | 4,778 |
| Cash and cash equivalents | | 13,587 | | | 10,369 |
| | | 45,076 | | | 26,841 |
| | | | | | |
| | | | | | |
| Current liabilities | | | | | |
| Trade and other payables | | (34,135) | | | (18,648) |
| Current tax liabilities | | (1,594) | | | (1,095) |
| | | (35,729) | | | (19,743) |
| | | | | | |
| | | | | | |
| Net current assets | | | 9,347 | | 7,098 |
| | | | | | |
| Non-current liabilities | | | | | |
| Provisions for other liabilities and charges | | | - | | (680) |
| | | | | | |
| Net assets | | | 25,709 | | 15,944 |
| | | | | | |
| Equity | | | | | |
| Called up share capital | | | 2,590 | | 2,564 |
| Share premium | | | 3,608 | | 3,356 |
| Treasury shares | | | (2,872) | | (943) |
| Retained earnings | | | 22,383 | | 10,967 |
| | | | | | |
| Shareholders’ equity | | | 25,709 | | 15,944 |
ASOS PLC
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 MARCH
_______________________________________________________________________________________
| 31 March | 31 March | ||||||
| 2009 | 2008 | ||||||
| £'000 | £'000 | ||||||
| Operating profit | 13,935 | 6,962 | |||||
| Adjusted for | |||||||
| Depreciation charge | 1,850 | 963 | |||||
| Loss on disposal of property, plant and equipment | - | 17 | |||||
| (Decrease) in inventories | (16,391) | (6,011) | |||||
| Decrease / (increase ) in trade and other receivables | 1,374 | (3,109) | |||||
| Increase in trade and other payables | 15,487 | 11,418 | |||||
| (Decrease) / Increase in provision for other liabilities and charges | (680) | 680 | |||||
| Impairment of property, plant and equipment | 362 | 254 | |||||
| Share options charge | 262 | 477 | |||||
| Cash generated from operations | 16,199 | 11,651 | |||||
| Taxation paid | (3,158) | (1,811) | |||||
| Net cash generated from operating activities | 13,041 | 9,840 | |||||
| Cash flow from investing activities | |||||||
| Payments to acquire property, plant and equipment | (8,200) | (4,740) | |||||
| Payments to acquire interest in joint venture | (240) | - | |||||
| Finance income | 268 | 349 | |||||
| Net cash from investing activities | (8,172) | (4,391) | |||||
| Cash flow from financing activities | |||||||
| Proceeds from issue of ordinary shares | 278 | 248 | |||||
| Purchase of own shares by Employee Benefit Trust | (1,929) | (707) | |||||
| Net cash from financing activities | (1,651) | (459) | |||||
| Net cash generated from continuing operations | 3,218 | 4,990 | |||||
| Opening cash and cash equivalents | 10,369 | 5,379 | |||||
| Closing cash and cash equivalents | 13,587 | 10,369 | |||||
ASOS PLC
statement of changes in equity
for the year ended 31 MARCH 2009
| Called up share capital | Share premium | Retained earnings | Treasury shares | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance as at 1 April 2008 | 2,564 | 3,356 | 10,967 | (943) | 15,944 |
| Shares allotted in the year | 26 | 252 | - | - | 278 |
| Purchase of shares by Employee Benefit Trust | - | - | - | (1,929) | (1,929) |
| Share options charge | - | - | 262 | - | 262 |
| Profit for the year | - | - | 10,009 | - | 10,009 |
| Tax on share options | - | - | 1,145 | - | 1,145 |
| Balance as at 31 March 2009 | 2,590 | 3,608 | 22,383 | (2,872) | 25,709 |
| Balance as at 1 April 2007 | 2,544 | 3,128 | 2,949 | (236) | 8,385 |
| Shares allotted in the year | 20 | 228 | - | - | 248 |
| Purchase of shares by Employee Benefit Trust | - | - | - | (707) | (707) |
| Share options charge | - | - | 477 | - | 477 |
| Profit for the year | - | - | 5,053 | - | 5,053 |
| Tax on share options | - | - | 2,488 | - | 2,488 |
| Balance as at 31 March 2008 | 2,564 | 3,356 | 10,967 | (943) | 15,944 |
SELECTED Notes to the financial information
BASIS OF PREPARATION
The financial information contained in this announcement does not constitute the Group's statutory financial statements within the meaning of Section 240 of the Companies Act 1985. The Group's auditors have issued an unqualified report on the statutory financial statements for the 12 months ended 31 March 2009 and have not made any statement under section 237(2) or (3) of the Companies Act 1985. A copy of the Group's statutory financial statements will be delivered to the Registrar of Companies in due course. Statutory accounts for the 12 months ended 31 March 2008, which were prepared under IFRS and on which our auditors expressed an unqualified opinion, have been filed with the Registrar of Companies.
The directors approved this announcement on 26 June 2009.
The financial statements for both the parent company and the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretation Committee (IFRIC) interpretations as adopted by the European Union and those parts of the Companies Act 1985 and 2006 as applicable to companies reporting under IFRS. The directors have taken advantage of the exemption available under section 230 of the Companies Act 1985 and have not presented an Income Statement for the company alone.The financial statements have been prepared on a going concern and historical cost basis. The principal accounting policies adopted are consistent with the accounting policies set out in the Group's 2008 annual report. The Group financial statements are presented in sterling and all values are rounded to the nearest thousand pounds except where otherwise indicated.
EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing the profit attributable to equity holders of the Parent Group by the weighted average number of ordinary shares in issue during the year.
Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders of the Parent Company by the weighted average number of ordinary shares in issue during the year, adjusted for the effects of potentially dilutive share options.
The dilution effect is calculated on the full exercise of all ordinary share options granted by the Group, including performance-based options which the Group considers to have been earned.
The calculations of earnings per share are based on the following:
| 2009 | 2008 | ||||||
| Basic | Potentially dilutive share options | Diluted | Basic | Potentially dilutive share options | Diluted | ||
| Profit attributable to share holders (continuing operations) (£'000) | 10,009 | - | 10,009 | 5,053 | - | 5,053 | |
| Weighted average number of shares | 73,635,398 | 4,508,766 | 78,144,164 | 72,865,070 | 4,275,246 | 77,140,316 | |
| Earnings per share | 13.6p | - | 12.8p | 6.9p | - | 6.6p | |
There have been no transactions involving ordinary shares between the reporting date and the date of the approval of these financial statements which would significantly change the earnings per share calculations shown above.
SEGMENTAL ANALYSIS
| 2009 | 2008 | ||
| £'000 | £'000 | ||
| Internet retailing | |||
| UK | 133,165 | 73,044 | |
| EU | 23,182 | 5,255 | |
| North America | 3,223 | 659 | |
| Rest of the world | 5,825 | 2,086 | |
| 165,395 | 81,044 |
Revenue consists primarily of internet and advertising sales as well as postage and packaging receipts. Revenue is recorded net of returns, relevant vouchers, and value added tax when the significant risks and rewards of ownership have been transferred to the buyer.