Sign In
Last checked at 
17 Nov 2008 07:00
ο»Ώ
FOR RELEASE AT 7.00 AMΒ
17 NovemberΒ 2008Β
ASOS PLC
("ASOS" or "the Company")
(Leading online fashion retailer)
Interim Results forΒ the 6 months to 30 September 2008
Financial Highlights:Β
Sales +107%Β year on yearΒ to Β£65.7Β millionΒ
Gross marginΒ +Β 80bpsΒ year on yearΒ toΒ 46%
Profit before tax +68%Β year on yearΒ to Β£4.1Β millionΒ
CashΒ in bank Β£8.9m
Sales for the 7 weeks toΒ 16 November 2008Β +104% year on year
BusinessΒ Highlights:
TotalΒ number ofΒ productΒ linesΒ upΒ 238% year on year to 19,400Β as at 31 OctoberΒ 2008
Number of brandsΒ upΒ 135% year on year to 700Β as at 31 OctoberΒ 2008
Number of active customersΒ upΒ 95% year on year toΒ 947,000Β as at 31 OctoberΒ 2008
Total number of unique visitorsΒ in October 2008Β upΒ 93% toΒ 4.5 millionΒ
Successful launch of ASOSRed
SuccessfulΒ launch of Maternity
International sales upΒ 252%Β year on yearΒ to Β£11.4m
For further information:Β
ASOS plc Tel: 020 7756 1000
Nick Robertson, Chief ExecutiveΒ
Jon Kamaluddin, Finance DirectorΒ
Cubitt Consulting Tel: 020 7367 5100
Brian Coleman Smith / James Verstringhe / Nicola Krafft
JPMorgan CazenoveΒ Tel: 020 7588 2828
Luke Bordewich / Gina GibsonΒ
SingerΒ Capital Markets Β Β Tel: 020 3205Β 7500
Nicholas How / Brad Cheng
Background Note
ASOS is rapidly becoming the market leader in theΒ UKΒ 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.com is theΒ UK's largest independent online fashion and beauty retailer and offers over 19,400 branded and own label product linesΒ across womenswear, menswear, footwear, accessories,Β jewellery and beautyΒ with approximately 1,150 new product lines being introduced each week.
Aimed primarily atΒ fashion forward 16-34 year olds, ASOS.com attracts over 4.5 million unique visitors a month and as at 31 OctoberΒ 2008 had 1.88Β million registered users and 0.95Β millionΒ active customers (defined as having shopped in the last 6 months).Β
Β www.asos.com
Β Β ASOS PLC
("ASOS" or "the Company")
(Leading online fashion retailer)
Interim Results forΒ the 6 months to 30 September 2008
CHIEF EXECUTIVE'S STATEMENT
ASOS hasΒ once againΒ performedΒ strongly and sales for the 6 months to 30 September 2008 are upΒ 107% whilst profit before tax for the same period is upΒ 68% to Β£4.1Β million.Β
Despite adverse economic conditions,Β we have,Β withΒ ourΒ strong balance sheet and operational cash flows, continued to investΒ in a number of customer focussed and strategic initiatives to support future growth.
We are convinced thatΒ international expansionΒ isΒ a hugeΒ growth opportunity for ASOS. To this end we will be appointing Jon Kamaluddin, currently Finance Director, to the role of International Director. Jon will continue in his existing role until a suitable replacement is found. We also intend to strengthenΒ our Board with the appointment of two additional Non Executive DirectorsΒ in due course.Β
CURRENT TRADINGΒ ANDΒ OUTLOOK
So far ASOS is proving resilient to the slowdown in consumer spending and sales for the 7Β weeks to 16 November 2008 areΒ 104% ahead year on year.Β Β Nevertheless, as stated at the time of the AGM, we face tougher second half comparables and need to trade through the all important Christmas period. The Board is pleased with the progress that ASOS has made to date with the Company continuing to trade in line with the Board's expectations. We view the coming months with cautious optimism.Β Β
Further guidance will be providedΒ at the time of theΒ Christmas tradingΒ statement.Β
Β Β FINANCIAL REVIEW
|
Β£ '000s |
H1 08/09Β |
H1 07/08Β |
Increase |
|
Revenues |
65,706 |
31,806 |
107% |
|
Gross profit |
30,233 |
14,370 |
110% |
|
Gross marginΒ |
46.0% |
45.2% |
|
|
Operating profit |
3,836 |
2,273 |
69% |
|
Profit before tax |
4,052 |
2,418 |
68% |
|
EPS - fully dilutedΒ (pence) |
3.7p |
2.2p |
68% |
Revenues
Total revenues were up by 107%, this is analysed as follows:
|
Β£ '000s |
H1 08/09Β |
H1 07/08Β |
Increase |
|
Retail salesΒ |
58,932 |
27,965 |
111% |
|
Delivery receiptsΒ |
6,271 |
3,292 |
90% |
|
Third party revenuesΒ |
503 |
549 |
-8% |
|
Group revenues |
65,706Β |
31,806Β |
107% |
Operating Profit
Operating profit increased 69% to Β£3.8Β million, driven byΒ strong sales growth andΒ a gross margin increase of 80 basis points to 46%. This wasΒ partly offset by a 118% rise in operating costs toΒ Β£26.4 million,Β reflecting theΒ first half biasΒ of investmentΒ this financial year.
Cash Flow and Balance Sheet
The Group continues to be cash generative and all investment is funded from cash flow. During the first half, capital expenditure amounted to Β£3.7 million.Β The cash balance onΒ 30 September 2008 amounted to Β£8.9 million and the Group had no debt.Β Β For the year endingΒ 31Β March 2009Β capital expenditure is likely to total around Β£8.6 million.
Surplus funds are invested in short-term deposits at a major high-street bank with the objective of maximising fixed interest 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.Β
Β Β BUSINESS REVIEW
ASOS continues to focus on improving the three key areas of Choice, Presentation and Service whilst at the same time ensuring that growth is well managed.
Product Choice
Product choice is at the core of the ASOS proposition. At the end of October 2008,Β 19,400Β differentΒ productΒ lines were available on the site, up four-fold from 5,700 in October 2007.
There was a significant increase in the number of brands available on the site, with theΒ number more than doubling to around 700Β byΒ the end ofΒ October 2008. New brands to ASOS over the last 6 months include Karen Millen, Warehouse, Whistles and Kookai. The overall mix of own label to branded product sales during the first half 2008/09 was 52% to 48%.
ASOSRed, ASOS'Β discount designer brand store, was launched onΒ 5Β SeptemberΒ 2008.Β Early signs have been very encouraging and sales and margin have been ahead of plan.
We nowΒ introduceΒ approximatelyΒ 1,150 newΒ productΒ lines onto the website each week.
In the coming 6 monthsΒ we will:Β
continue to broaden the number ofΒ productΒ lines offered;
bring further brands onto the site;
launch ASOSKids;Β andΒ
launch a premium designer brands shop in shop.
ProductΒ Presentation
The ASOS website was redesigned in SeptemberΒ 2008Β and we have plans for another redesign during the second halfΒ of the financial year.
The award winning ASOS magazine nowΒ hasΒ the third highest circulationΒ of any monthlyΒ fashion magazine in theΒ UK,Β after Glamour and Cosmopolitan.Β Β In the first half of the yearΒ we launched the firstΒ ASOSΒ men's magazine.Β We also underpinned our fashion credentials through extensive product placement in key consumer publications.
Customer Service
In the six months toΒ 30Β September 2008, we shipped 1.7Β million orders, anΒ 82% increase on the same period last year.Β
In August, the standard delivery promise was decreased from within 3-4 days to within 2-3 days. A Saturday delivery option was added to the Next Day service as well as the possibility to order over the weekend for a Monday delivery.Β
Excellent customer care is integral to our strategy and to this end the customer care centre is now manned 24 hours a day, seven days a week.Β
Unaudited Consolidated (Condensed) Income StatementΒ for the six months ended 30 September 2008
|
Audited |
|||
|
6 months to |
6 months to |
12 months to |
|
|
30 September |
30 September |
31 March |
|
|
2008 |
2007 |
2008 |
|
|
Β |
Β£'000 |
Β£'000 |
Β£'000 |
|
Revenue |
65,706 |
31,806 |
81,044 |
|
Cost of sales |
(35,473) |
(17,436) |
(43,760) |
|
Β |
Β |
Β |
Β |
|
Gross profit |
30,233 |
14,370 |
37,284 |
|
Administration expenses |
(26,397) |
(12,097) |
(30,322) |
|
Β |
Β |
Β |
Β |
|
Operating profit |
3,836 |
2,273 |
6,962 |
|
Finance income |
216 |
145 |
349 |
|
Β |
Β |
Β |
Β |
|
Profit before tax |
4,052 |
2,418 |
7,311 |
|
Taxation |
(1,150) |
(745) |
(2,258) |
|
Β |
Β |
Β |
Β |
|
ProfitΒ for the period |
2,902 |
1,673 |
5,053 |
|
Earnings per Share |
|||
|
Basic |
4.0p |
2.3p |
6.9p |
|
Diluted |
3.7p |
2.2p |
6.6p |
Β Β
Unaudited Consolidated Statement of ChangesΒ in EquityΒ for the six months ended 30 September 2008
|
Share capital |
Share premium |
Retained earnings |
Treasury shares |
Total |
|
|
Β£'000 |
Β£'000 |
Β£'000 |
Β£'000 |
Β£'000 |
|
|
Balance as at 1 April 2008 |
2,564 |
3,356 |
10,967 |
(943) |
15,944 |
|
Shares alloted in the year |
17 |
180 |
Β -Β |
-Β |
197 |
|
Purchases of shares by EBT |
Β -Β |
Β -Β |
Β -Β |
(1,477) |
(1,477) |
|
Share options charge |
Β -Β |
Β -Β |
149 |
Β -Β |
149 |
|
Profit for the period |
Β -Β |
Β -Β |
2,902 |
Β -Β |
2,902 |
|
Balance as at 30 September 2008 |
2,581 |
3,536 |
14,018 |
(2,420) |
17,715 |
Unaudited Consolidated (Condensed)Β Balance SheetΒ as at 30 September 2008
|
Β |
Audited |
||
|
30 September |
30 September |
31 March |
|
|
2008 |
2007 |
2008 |
|
|
Β |
Β£'000 |
Β£'000 |
Β£'000 |
|
Goodwill |
1,060 |
1,060 |
1,060 |
|
Property, plant and equipment |
8,398 |
2,974 |
5,590 |
|
Deferred tax asset |
2,550 |
560 |
2,876 |
|
Non current assets |
12,008 |
4,594 |
9,526 |
|
Inventories |
22,126 |
8,231 |
11,694 |
|
Trade and other receivables |
5,395 |
2,791 |
4,778 |
|
Cash and cash equivalents |
8,852 |
5,857 |
10,369 |
|
Current assets |
36,373 |
16,879 |
26,841 |
|
Current liabilities |
(29,192) |
(11,082) |
(18,648) |
|
Current tax liabilities |
(838) |
(752) |
(1,095) |
|
Current liabilities |
(30,030) |
(11,834) |
(19,743) |
|
Net current assets |
6,343 |
5,045 |
7,098 |
|
Provisions for other liabilities and charges |
(636) |
- |
(680) |
|
Β |
Β |
Β |
Β |
|
Net assets |
17,715 |
9,639 |
15,944 |
|
Called up share capital |
2,581 |
2,548 |
2,564 |
|
Share premium |
3,536 |
3,185 |
3,356 |
|
Treasury shares |
(2,420) |
(943) |
(943) |
|
Retained earnings |
14,018 |
4,849 |
10,967 |
|
Β |
Β |
Β |
Β |
|
Total equity |
17,715 |
9,639 |
15,944 |
Β Β Unaudited Consolidated (Condensed) CashΒ Flow StatementΒ for the six months ended 30 September 2008
|
Audited |
|||
|
6 months to |
6 months to |
12 months to |
|
|
30 September |
30 September |
31 March |
|
|
Β |
2008 |
2007 |
2008 |
|
Cash generated from operations |
4,324 |
2,344 |
11,651 |
|
Taxation paid |
(1,081) |
-Β |
(1,811) |
|
Net cash inflow from returns on investment and servicing of finance |
216 |
145 |
349 |
|
Net cashΒ outflowΒ from investing activities |
(3,696) |
(1,301) |
(4,740) |
|
Net cashΒ outflowΒ from financing activities |
(1,280) |
(647) |
(459) |
|
Net decrease in cash from discontinued operations |
- |
(63) |
-Β |
|
Β |
Β |
Β |
Β |
|
Net (decrease)/increase in cash and cash equivalents |
(1,517) |
478 |
4,990 |
Β Β
|
Notes to the Financial Statements |
||||||
|
1. The interim accounts for the six months ended 30 September 2008 are unaudited and do not constitute statutory accounts in accordance with section 240 of the Companies Act 1985. The financial information for the six months ended 30 September 2007 hasΒ been extracted from the IFRS compliant financial statements for the twelve months to 31 March 2008,Β the auditors gave an unqualified report on these results. A copy ofΒ those financial statements hasΒ been filed with the registrar of companies.Β |
||||||
|
2. Segmental analysis |
||||||
|
6 months to |
6 months to |
12 months to |
||||
|
30 September |
30 September |
31 March |
||||
|
2008 |
2007 |
2008 |
||||
|
Β£'000 |
Β£'000 |
Β£'000 |
||||
|
Revenue |
||||||
|
Geographical analysis of revenue by origin |
||||||
|
UK |
54,356 |
28,585 |
73,044 |
|||
|
North America |
859 |
288 |
659 |
|||
|
Rest of the world |
10,491 |
2,933 |
7,341 |
|||
|
65,706 |
31,806 |
81,044 |
||||
|
Revenue consists primarily of internet and advertising sales as well as postage and packaging receipts. Revenue is recorded net of returns,Β relevant vouchers and value added tax when the significant risks and rewards of ownership have been transferred to the buyer. |
||||||
|
3. Earnings per share |
||||||
|
The calculation of earnings per share is based on the following: |
||||||
|
6 monthsΒ to Β 30 September 2008 |
6 monthsΒ toΒ 30 September 2007 |
12 monthsΒ to 31 March 2008 |
||||
|
Β£'000 |
Β£'000 |
Β£'000 |
||||
|
Profit attributable to shareholders |
2,902 |
1,673 |
5,053 |
|||
|
Weighted average number of shares |
||||||
|
For basic earnings per share |
73,434,444 |
72,801,013 |
72,865,070 |
|||
|
For diluted earnings per share |
78,639,912 |
76,213,048 |
77,140,316 |
|||
|
4. The interim report will be posted to all shareholders of the Company and copies will be available upon application to ASOS Plc, Greater London House,Β Hampstead Road,Β London,Β NW1 7FB. |
||||||
Follow the stocks
