TIDMASC
RNS Number : 7145H
ASOS PLC
02 June 2011
ASOS plc
Global Online Fashion Store
Audited Final Results for the year ended 31 March 2011
"Investing for Growth"
Summary results table
GBP'000s 2011 2010 Change
------------------------------- ------------------- -------- ---------
Group revenues(1) 339,691 222,999 52%
Retail sales 324,100 205,491 58%
UK retail sales 184,072 147,571 25%
International retail sales 140,028 57,920 142%
Gross profit 131,690 93,136 41%
Gross margin 38.8% 41.8% (300bps)
Retail gross margin 46.6% 45.6% 100bps
Profit before tax and
exceptional items 28,648 20,339 41%
Profit before tax 15,705 20,339 (23%)
Diluted underlying earnings
per share(2) 25.6p 18.7p 37%
Diluted earnings per share(3) 13.7p 18.7p (27%)
Net funds(4) 4,679 15,645 (70%)
------------------------------- ------------------- -------- ---------
(1) Includes retail sales, postage and packaging (P&P)
income and 3(rd) party revenues
(2) Underlying earnings per share has been calculated using
profit after tax but before exceptional items
(3) Earnings per share has been calculated using profit after
tax and exceptional items of GBP12.9m
(4) Cash and cash equivalents less bank borrowings
Highlights:
-- Retail sales up 58% (UK retail sales up 25%, International
retail sales up 142%)
-- International retail sales accounted for 43% of total retail
sales (2010: 28%) and over 50% during the fourth quarter
-- Profit before tax and exceptional items up 41% to
GBP28.6m
-- USA, French and German websites launched
-- ASOS Marketplace and ASOS Fashion Finder websites
launched
-- ASOS Mobile site and Facebook stores launched
-- New warehouse transition on track and on budget. An
exceptional charge of GBP12.9m has been taken during the year to
reflect the direct costs of the transition.
Nick Robertson, CEO, commented:
"I am pleased to report another successful year for ASOS, with
retail sales up 58% to GBP324.1m and profit(5) up 41% to
GBP28.6m.
"Our International expansion programme remains firmly on track
with International retail sales up 142% on last year. During the
year we launched country specific sites in the USA, France and
Germany and we plan to launch three further country specific sites
in the coming financial year.
"We have continued our investment programme to meet anticipated
growth targets. Key to this is the ongoing transition to a new
530,000 sq ft warehouse in Barnsley, which will be fully
operational by June 2011.
"We remain positive in our outlook for 2012 and are excited by
the opportunities for both our UK and international
businesses."
2 June 2011
(5 ) Profit before tax and exceptional items
Investor and Analyst Meeting
There will be a meeting for investors and analysts that will
take place at 9.30am today 2 June 2011 in The Auditorium at J.P.
Morgan Cazenove, 20 Moorgate, London, EC2R 6DA.
For further information:
ASOS plc
Nick Robertson, Chief Executive Tel: 020 7457 2020 (Today)
Nick Beighton, Finance Director Tel: 020 7756 1017 (Thereafter)
Website: www.asos.com
College Hill
Matthew Smallwood / Justine Warren / Tel: 020 7457 2020
Jamie Ramsay
JPMorgan Cazenove
Luke Bordewich / Gina Gibson Tel: 020 7742 4000
Numis Securities
Alex Ham Tel: 020 7260 1000
Background note
ASOS.com is a global online fashion and beauty retailer and
offers over 50,000 branded and own label product lines across
womenswear, menswear, footwear, accessories, jewellery and beauty.
ASOS has websites targeting the UK, USA, France and Germany and
also ships to over 190 other countries from its central
distribution centre in the UK.
Aimed at fashion forward 16-34 year olds, ASOS attracts over 13
million unique visitors a month and as at 31 March 2011 had 5.3
million registered users and 3.2 million active customers from 160
countries (defined as having shopped in the last 12 months).
www.asos.com
www.us.asos.com
www.asos.de
www.asos.fr
m.asos.com
marketplace.asos.com
fashionfinder.asos.com
ASOS plc ("the Group")
Global Online Fashion Store
Final Results for the year ended 31 March 2011
Business Review
We have had another successful year, with Group revenues up 52%
to GBP339.7m (2010: GBP223.0m) and profit before tax and
exceptional items up 41% on prior year at GBP28.6m (2010:
GBP20.3m). Profit before tax was down GBP4.6m on prior year to
GBP15.7m (2010: GBP20.3m) due to exceptional warehouse transition
costs of GBP12.9m incurred during the year.
Total retail sales grew 58% to GBP324.1m (2010: GBP205.5m). The
key driver of growth continues to be our international business (up
142%) although UK growth remains strong with sales up 25% on last
year. The international portion of our retail sales mix has
continued to increase during the year and now accounts for over 50%
of total retail sales. During the year we launched 3 country
specific sites in the USA, France and Germany and we plan to launch
another 3 during the current financial year.
Our retail gross margin improved by 100bps in the year; however,
as anticipated, our overall gross margin was down 300bps to 38.8%
(2010: 41.8%) as a result of our increased investment in free
shipping and free returns in our key territories. Offering free
delivery and returns remains one of our strategic aims over the
medium term and a key differentiator of our customer offer from
others in the marketplace. For the time being we will continue to
use free delivery and returns in a planned and budgeted manner, but
over time we aim to use it as part of the ongoing service
proposition once the business' scale can support it.
We continue to migrate from being a UK based shop into a global
fashion destination, by creating new ways to drive traffic and
encourage customer engagement. During the year we launched ASOS
Marketplace(6) and ASOS Fashion Finder(7) as well as Europe's first
transactional Facebook shop. We also launched ASOS mobile, a
channel which we believe will be very significant in the future,
especially on the International stage.
During the year we saw the number of items available for sale to
customers increase to 50,000, up from 36,000 last year. This does
not include the inventory now available through ASOS Marketplace or
ASOS Fashion Finder. We added some significant new brands including
River Island and Barbour to the range and introduced a number of
International brands from our key territories. ASOS own brand
continues to grow and we introduced two new 'own label'
initiatives; ASOS Reclaimed and ASOS White.
Technology remains at the forefront of what we do and we
continue to invest in our underlying technology platform as well as
a number of customer facing enhancements. Improvements include a
new buying and merchandising system and a significantly enhanced
search and recommendation solution.
We commenced the transition of our four distribution facilities
in Hemel Hempstead to a single warehouse in Barnsley in March 2011.
This project will allow us to meet our projected sales growth
targets and is on track and budget for completion in June 2011.
(6 ) ASOS Marketplace is a platform allowing small boutiques,
independent designers and ASOS customers to showcase and sell their
fashion product to all ASOS visitors.
(7) ASOS Fashion Finder is a platform that enables us to present
great fashion to our customer from brands that we might not
necessarily sell, but which we believe our customers would
appreciate.
Outlook
We remain positive about the outlook for 2012 and remain on
track to deliver our ambitious plan of GBP1bn of sales by 2015.
Trading operations
It was another successful year for both our UK and International
businesses. On a daily basis we are now in the top five most
visited fashion retail websites on the planet and our International
business accounts for over 50% of our retail sales.
Our UK website has seen visitor growth of 25% year on year, and
Comscore data has shown we have continued to maintain our 2(nd)
place position in the UK for traffic.
We successfully launched our USA, French and German sites in the
year. The three country specific sites are performing well, with
visitors, orders and average selling price significantly up year on
year. Based on Comscore data we have risen in the USA to 37th at
March 2011 (February 2010: 79th); France to 20th (February 2010:
41st); and Germany to 26th (February 2010: 61st).
Total Group revenue was up 52% driven by 142% growth in our
International retail sales and 25% growth in our UK retail sales.
Gross profit was up 41% on last year to GBP131.7m (2010: GBP93.1m).
Retail margin improved as a result of improved buying terms and
effective stock management. As anticipated however, our overall
gross margin was lowered by our continued investment in free
delivery and returns.
Revenue
GBP'000s UK International Group Total
----------------- -------- ------------
USA EU RoW Total
----------------- -------- ------- ------- ------- -------- ------------
Retail sales 184,072 18,642 73,385 48,001 140,028 324,100
Growth 25% 235% 86% 275% 142% 58%
Delivery
receipts 6,814 634 3,063 2,574 6,271 13,085
Growth (33%) 70% (10%) 98% 24% (14%)
Third party
revenues 2,506 - - - - 2,506
Growth 9% 9%
Group revenues 193,392 19,276 76,448 50,575 146,299 339,691
Growth 21% 225% 78% 258% 132% 52%
----------------- -------- ------- ------- ------- -------- ------------
Total retail sales were up 58% on last year. The impact of our
three country specific sites can be seen in the year on year sales
growth of the USA, up 235%, and the EU, up 86%. The Rest of the
World segment has been boosted by our strong performance in
Australia, Russia and the Far East.
As expected, overall delivery receipts were down 14% on last
year as we continued our investment in customer delivery and
returns. In November 2010, we launched our global free shipping
offer which has reduced the growth in full year international
delivery receipts to 24% on last year, compared to 110% on last
year in the first half of 2011.
Third party revenues, which mainly comprise advertising revenues
from the website and the ASOS magazine, grew 9% in the year to
GBP2.5m, despite removal of banner advertising from our
website.
Trading Key Performance Indicators
Our key metrics again show strong gains. Average basket value is
up by 2%, average selling price is up 7%, visits are up 59% with
traffic in both the UK and all our major markets significantly
ahead of prior year. The number of active customers, defined as
having shopped in the last 12 months, increased by 51%. Units per
basket fell during the year, a direct consequence of our investment
in free delivery.
International
Group
KPIs 2011 UK USA EU RoW Total Total
------------ --------- --------- --------- --------- --------- ---------
Average
basket
value(1) GBP64.21 GBP61.50 GBP74.10 GBP84.99 GBP74.91 GBP67.53
Growth 2% (7%) (7%) (7%) (6%) 2%
Average
units per
basket 2.41 2.36 2.92 3.49 2.98 2.58
Growth (6%) (10%) (12%) (8%) (10%) (5%)
Average
selling
price per
unit(1) GBP26.68 GBP26.05 GBP25.38 GBP24.34 GBP25.15 GBP26.13
Growth 9% 3% 5% 1% 4% 7%
Number of
orders
('000) 5,375 385 1,404 626 2,415 7,790
Growth 36% 315% 101% 351% 160% 60%
Unique
visitors
('000)
(2) 13,000
Growth 73%
Total
visits
('000)
(2) 148,507 24,847 81,580 42,570 148,997 297,504
Growth 25% 176% 93% 143% 117% 59%
Active
customers
('000)
(3) 2,080 213 612 255 1,080 3,160
Growth 26% 280% 97% 254% 147% 51%
------------ --------- --------- --------- --------- --------- ---------
(1) Including VAT
(2) During March 2011
(3) As at 31 March 2011, defined as having shopped during the
last 12 months
Gross profit
The Group generated gross profit of GBP131.7m, up 41% on last
year. Gross profit in the UK increased by 14% to GBP75.9m, whilst
International gross profit grew by 108% to GBP55.8m.
Group
GBP'000s UK International Total
------------ --------- ---------
USA EU RoW Total
------------ --------- --------- --------- --------- --------- ---------
Gross
profit 75,877 6,940 29,149 19,724 55,813 131,690
Growth 14% 157% 66% 201% 108% 41%
Retail
gross
margin 44.6% 55.2% 47.4% 49.9% 49.3% 46.6%
Change (20bps) (90bps) 250bps (680bps) 70bps 100bps
Gross
margin 39.2% 36.0% 38.1% 39.0% 38.1% 38.8%
Change (220bps) (950bps) (280bps) (740bps) (450bps) (300bps)
------------ --------- --------- --------- --------- --------- ---------
The Group retail margin increased by 100bps to 46.6% (2010:
45.6%) as a result of improved buying and markdown management.
These gains were mitigated by the underlying cost increases from
labour and raw material inflation. Increased levels of promotional
activity were also prevalent in the second half, particularly in
the UK. Retail margin in the Rest of World declined during the year
due to an increased mix of markdown purchases from countries which
are counter-seasonal. In 2012, we expect to continue to offset
sourcing pressures with volume leverage.
Gross margin was down 300bps in the year to 38.8% (2010: 41.8%)
as a result of increased investment in the customer delivery
proposition including the launch of free shipping and free returns
in the USA, free returns in France and Germany, and the launch of
our global free shipping offer.
ASOS Marketplace and ASOS Fashion Finder
ASOS Marketplace was launched in November 2010 and is a platform
allowing small boutiques, independent designers and ASOS customers
to showcase and sell their fashion product to all ASOS visitors.
ASOS Fashion Finder was launched in March 2011 and is a platform
that enables us to present great fashion to our customers from
brands that we might not necessarily sell, but which we believe our
customer will appreciate. These two initiatives are part of our
strategy to be not just an online store but a global fashion
destination with the aim of driving incremental traffic, and
customer engagement. Both platforms are still in their infancy but
are performing in line with our expectations.
Investment in our operating resources
The Group increased its investment in its operating resources
and capability by 41% to GBP102.8m, excluding exceptional items.
The operating leverage delivered by the Group has again
strengthened the underlying operating and financial performance.
The Group's operating cost ratio improved by 240 basis points from
32.7% to 30.3%. The table below details the operating costs
incurred by the Group, excluding exceptional items.
GBP'000s 2011 2010 Change
--------------------------------------- -------- ------- ---------
Payroll and staff costs 35,717 25,877 38%
Warehousing 22,543 19,399 16%
Marketing 14,280 9,252 54%
Production 2,621 1,999 31%
Technology costs 5,629 3,277 72%
Other operating costs 17,118 9,699 76%
Depreciation 4,932 3,322 48%
--------------------------------------- -------- ------- ---------
Operating costs excluding exceptional
items 102,840 72,825 41%
% of sales 30.3% 32.7% (240bps)
--------------------------------------- -------- ------- ---------
Payroll and staff costs increased by 38%, thereby delivering
further operating cost improvement. The main increases in our
headcount were in our international, technology and retail
teams.
Warehouse costs, excluding exceptional items, were GBP22.5m,
down from 8.7% of sales in 2010 to 6.6% of sales during 2011. This
was delivered through the benefits of greater scale and continued
productivity gains. Costs associated with the ongoing transition of
our warehousing facilities to the new warehouse site have been
recognised within exceptional items.
The operational cost improvements delivered during the year were
partly re-invested in increased marketing expenditure both in the
UK and internationally to drive higher customer awareness. We have
continued to invest in our editorial resource and website look and
feel to enhance the shopping experience.
Technology costs increased by 72% year on year principally due
to the strategic investment in our technological platforms,
including a new buying and merchandising system, international
websites, and the ASOS Marketplace and ASOS Fashion Finder
websites. During the year we launched ASOS mobile which we believe
will be a significant proportion of our traffic and business in the
near future. We also enhanced a number of key areas of the site,
from site speed in our International markets to a much improved
search and recommendations solution.
The increase in other operating costs during the year was driven
by increased credit card handling fees resulting from the number of
transactions processed and increased property rental costs and
professional fees.
Group Profit
The Group generated profit before tax and exceptional items up
41% on prior year at GBP28.6m (2010: GBP20.3m).
GBP'000s 2011 2010 Change
------------------------------------------ ---------- ---------- -------
Revenue 339,691 222,999 52%
Cost of sales (208,001) (129,863)
------------------------------------------ ---------- ---------- -------
Gross profit 131,690 93,136 41%
Administrative expenses excluding
exceptional items (102,840) (72,825)
------------------------------------------ ---------- ---------- -------
Operating profit before exceptional
items 28,850 20,311 42%
Share of post tax losses of joint
venture (3) (69)
Net finance income/(costs) (199) 97
------------------------------------------ ---------- ---------- -------
Profit before tax and exceptional
items 28,648 20,339 41%
Exceptional items (12,943) -
Profit before tax 15,705 20,339 (23%)
Income tax expense (4,856) (5,759)
------------------------------------------ ---------- ---------- -------
Profit after tax 10,849 14,580 (26%)
------------------------------------------ ---------- ---------- -------
Effective tax rate excluding exceptional
items 29.1% 28.3%
------------------------------------------ ---------- ---------- -------
Exceptional items
Exceptional costs of GBP12.9m reflect the direct costs of the
ongoing transition to our new warehouse. This is composed of
GBP3.0m impairment of held-for-sale assets to net realisable value,
which is non-cash, and further one-off costs associated with the
reorganisation of distribution totalling GBP9.9m. These include
dual site decollation costs, redundancy and relocation costs, staff
training and other one-off costs. The cash outflow in 2011 as a
result of these exceptional costs was GBP6.6m.
The main components of the exceptional charge are as
follows:
GBP'000s Total
----------------------------- -------
Dual site decollation costs 2,088
Pre go-live occupancy and
employee costs 7,830
Impairment of assets 3,025
Total 12,943
----------------------------- -------
In the coming financial year, we expect to incur additional
exceptional charges of GBP6-7m relating to dual site running, stock
transfer costs, relocation and retention costs and other one-off
costs.
Finance income and expense
Net finance costs were GBP199,000, compared to net finance
income in the prior year of GBP97,000. The increase in finance
costs is as a result of the reduction in the net cash position in
the year as a result of the exceptional costs and capital
expenditure relating to the new warehouse transition.
Taxation
The effective tax rate (pre exceptional items) for the Group was
29.1%, 80bps higher than last year and 110bps above the UK
corporation tax rate of 28.0%. Including exceptional items the
effective tax rate was 30.9% (2010: 28.3%). Our cash tax effective
rate (pre exceptional items) was 12.6% due to the tax benefit
related to the exercise of share options recognised in equity.
Going forward, we would expect the effective rate of tax to be
around 1% higher than the prevailing corporation tax rate.
Earnings per share
Basic underlying earnings per share(8) increased by 37% to 27.3p
per share (2010: 20.0p), and diluted underlying earnings per
share(8) increased by 37% to 25.6p per share (2010: 18.7p),
reflecting the increase in profit after tax excluding exceptional
items in the year.
Basic earnings per share(9) decreased by 27% to 14.6p per share
(2010: 20.0p), and diluted earnings per share(9) decreased by 27%
to 13.7p per share (2010: 18.7p), reflecting the exceptional costs
incurred during the year offsetting the growth in underlying profit
after tax.
Dividend
The Board is of the opinion that shareholder's interests are
best served by continuing to reinvest the cash generated by the
business to exploit the substantial growth opportunities both in
the UK and Internationally. Accordingly, it has proposed not paying
a dividend for 2011. This policy remains under regular review.
Statement of Financial Position
The Group has a strong financial position. Net assets increased
by GBP26.6m to GBP72.1m (2010: GBP45.5m).
As at 31 March 2011, the Group has reclassified property, plant
and equipment held at our Hemel warehouse to a disposal group
classified as held for sale. The assets have been impaired to their
net realisable value of GBP2.8m, based on an independent valuation.
This impairment is included within exceptional costs.
(8) Underlying earnings per share has been calculated using
profit after tax but before exceptional items.
(9) Earnings per share has been calculated using profit after
tax and exceptional items.
Statement of Cash Flows
The Group cash balance was GBP4.7m at 31 March 2011, down from
GBP15.6m at 31 March 2010. The summary cash flow is detailed
below.
GBP'000s 2011 2010
------------------------------------------------------ --------- --------
Operating profit 15,907 20,311
Exceptional items 12,943 -
------------------------------------------------------ --------- --------
Operating profit before exceptional items 28,850 20,311
Depreciation and amortisation 4,932 3,322
Working capital (7,541) (9,470)
Share based payments charges 1,165 918
Taxation (5,509) (4,373)
------------------------------------------------------ --------- --------
Cash inflow from operating profit before exceptional
items 21,897 10,708
Operating cash outflow relating to exceptional items (6,615) -
------------------------------------------------------ --------- --------
Cash inflow from operating profit 15,282 10,708
Capital expenditure on new distribution centre (15,058) -
Other capital expenditure (10,685) (8,439)
Payments to acquire investments in joint venture - (60)
Proceeds from issue of ordinary shares 1,100 557
Purchase of own shares by Employee Benefit Trust (1,406) (805)
Net interest (paid)/received (199) 97
Total cash outflow (10,966) 2,058
------------------------------------------------------ --------- --------
Cash inflow from operating profit increased by GBP4.6m to
GBP15.3m, driven by growth in operating profit before exceptional
items of GBP8.5m and a GBP1.9m lower outflow from working capital,
offset by a cash outflow of GBP6.6m related to operating
exceptional warehouse transition costs.
The Group continues to monitor working capital tightly.
Inventories increased by 75% to GBP66.1m at year end as we
increased stock levels to service future business growth. Trade
payables increases have not been as marked as inventory increases
due to continued efficient payment of suppliers to take advantage
of early settlement discounts.
The operating cash inflow was offset by capital expenditure of
GBP25.7m (GBP15.0m related to the new distribution facilities and
GBP10.7m other capital expenditure).
Our investments are funded by operating cash flows, with
additional short term and medium term facilities to support the
working capital movement and planned capital expenditure. The Group
renegotiated its financing facilities during the year and at 31
March 2011 had in place a GBP10m overdraft facility to be used for
general corporate purposes including working capital and an undrawn
GBP10m revolving credit facility which is available until 14
February 2013.
Fixed asset additions
GBP' 000 2011 2010
----------------------------- ------- ------
IT 9,726 5,470
Office fixtures and fit-out 977 758
Warehouse 17,781 2,211
Total 28,484 8,439
----------------------------- ------- ------
In addition to the GBP9.7m invested in our technology platform,
we made fixed asset additions of GBP17.8m for the fit out of our
new distribution facility in Barnsley. The new warehouse will
become fully operational in June 2011 and the fixed asset additions
to date give the business the operating capacity for annual sales
of GBP600m.
We forecast further fixed asset additions, in relation to the
new distribution facility, of GBP10m in 2012. These additional
investments are dependent on future business growth and will enable
the new facility to deliver annual sales processing capacity of
over GBP1 billion.
Future Change in Accounting Classification
The Group is considering reclassifying its delivery costs to
operating expenses as delivery investment is increasingly deployed
as a marketing expenditure. Note 5 to this release provides
restated numbers if we were to implement this change.
Audited Consolidated Statement of Comprehensive Income
For the year ended 31 March 2011
31 March 31 March 31 March 31 March
2011 2011 2011 2010
Before After
exceptional Exceptional exceptional
items items items
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 339,691 - 339,691 222,999
Cost of sales (208,001) - (208,001) (129,863)
------------ ---------------- -------------- ----------
Gross profit 131,690 - 131,690 93,136
Administrative expenses (102,840) (12,943) (115,783) (72,825)
------------ ---------------- -------------- ----------
Operating profit 28,850 (12,943) 15,907 20,311
Share of post tax losses
of joint venture (3) - (3) (69)
Finance income 16 - 16 97
Finance expense (215) - (215) -
------------ ---------------- -------------- ----------
Profit before tax 28,648 (12,943) 15,705 20,339
Income tax expense (8,337) 3,481 (4,856) (5,759)
Profit for the year and
total comprehensive income
attributable to owners
of the parent 20,311 (9,462) 10,849 14,580
============ ================ ============== ==========
Earnings per share(1)
Basic 14.6p 20.0p
Diluted 13.7p 18.7p
------ ------ ------
Underlying earnings per
share(2)
Basic 27.3p 20.0p
Diluted 25.6p 18.7p
------ ------ ------
(1 ) Earnings per share is calculated in accordance with IAS 33
'Earnings per share' and includes exceptional items.
2 Underlying earnings per share excludes exceptional items.
Audited Consolidated Statement of Changes in Equity
For the year ended 31 March 2011
Called Employee
up Benefit
share Share Retained Trust Total
capital premium earnings(1) reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 April
2009 2,590 3,608 22,383 (2,872) 25,709
Shares allotted in
the year 27 530 - - 557
Purchase of shares
by Employee
Benefit Trust - - - (805) (805)
Employee share schemes - - 1,420 480 1,900
Total comprehensive
income - - 14,580 - 14,580
Deferred tax on share
options - - 2,683 - 2,683
Current tax on items
taken directly to
equity - - 854 - 854
Balance as at 31
March 2010 2,617 4,138 41,920 (3,197) 45,478
======== ======== ============== =========== ========
Shares allotted in
the year 44 1,056 - - 1,100
Purchase of shares
by Employee
Benefit Trust - - - (1,406) (1,406)
Employee share schemes - - (163) 1,328 1,165
Total comprehensive
income - - 10,849 - 10,849
Deferred tax on share
options - - 10,199 - 10,199
Current tax on items
taken directly to
equity - - 4,735 - 4,735
Balance as at 31 March
2011 2,661 5,194 67,540 (3,275) 72,120
====== ====== ======= ======== ========
(1) Retained earnings includes the share-based payments
reserve
Audited Consolidated Statement of Financial Position
As at 31 March 2011
2011 2010
GBP'000 GBP'000
Non-current assets
Goodwill 1,060 1,060
Other intangible assets 9,529 3,918
Property, plant and equipment 24,893 12,777
Interest in joint venture - 153
Deferred tax asset 16,877 6,636
--------- ---------
52,359 24,544
--------- ---------
Current assets
Inventories 66,094 37,728
Trade and other receivables 10,122 4,835
Derivative financial assets - 18
Current tax asset 2,914 -
Cash and cash equivalents 4,679 15,645
--------- ---------
83,809 58,226
--------- ---------
Assets of disposal group classified
as held for sale 2,800 -
--------- ---------
Current liabilities
Trade and other payables (64,947) (34,839)
Provisions (1,901) -
Current tax liabilities - (2,453)
--------- ---------
(66,848) (37,292)
--------- ---------
Net current assets 19,761 20,934
Net assets 72,120 45,478
========= =========
Equity attributable to owners
of the parent
Called up share capital 2,661 2,617
Share premium 5,194 4,138
Employee Benefit Trust reserve (3,275) (3,197)
Retained earnings 67,540 41,920
Total equity 72,120 45,478
========= =========
Audited Consolidated Statement of Cash Flows
For the year ended 31 March 2011
31 March 31 March
2011 2010
GBP'000 GBP'000
Operating profit 15,907 20,311
Adjusted for:
Operating exceptional items 12,943 -
Depreciation of property, plant
and equipment 3,290 3,103
Amortisation of other intangible
assets 1,642 219
Increase in inventories (28,366) (9,643)
Increase in trade and other receivables (5,119) (1,449)
Increase in trade and other payables 25,944 1,622
Share-based payments charges 1,165 918
Income taxes paid (5,509) (4,373)
--------- ---------
Net cash generated from operating
activities before exceptional
items 21,897 10,708
Cash outflow relating to exceptional
operating items (6,615) -
--------- ---------
Net cash generated from operating
activities 15,282 10,708
Investing activities
Payments to acquire other intangible
assets (7,748) (2,892)
Payments to acquire property,
plant and equipment (17,995) (5,547)
Payments to acquire investments
in joint venture - (60)
Finance income 16 97
Net cash outflow used in investing
activities (25,727) (8,402)
Financing activities
Proceeds from issue of ordinary
shares 1,100 557
Purchase of own shares by Employee
Benefit Trust (1,406) (805)
Finance expense (215) -
--------- ---------
Net cash used in financing
activities (521) (248)
Net (decrease)/increase in cash
and cash equivalents (10,966) 2,058
========= =========
Opening cash and cash equivalents 15,645 13,587
Closing cash and cash equivalents 4,679 15,645
========= =========
Notes to the financial information
1. Preparation of the audited condensed consolidated financial
information
a) Basis of preparation
Whilst the information included in this audited condensed
consolidated financial information ("preliminary announcement") has
been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRSs")
as adopted for use in the European Union and as issued by the
International Accounting Standards Board, this preliminary
announcement does not itself contain sufficient information to
comply with IFRSs.
The preliminary announcement for the 12 months to 31 March 2011
has been prepared on a consistent basis with the financial
accounting policies set out in the Accounting Policies section of
the ASOS Plc Annual Report and Accounts 2011.
b) Preliminary announcement
The financial information contained within this preliminary
announcement for the 12 months to 31 March 2011 and 12 months to 31
March 2010 do not comprise statutory financial statements for the
purpose of the Companies Act 2006, but are derived from those
statements. The statutory accounts for ASOS Plc for the 12 months
to 31 March 2010 have been filed with the Registrar of Companies
and those for the 12 months to 31 March 2011 will be filed
following the Company's annual general meeting. The auditors'
reports on the accounts for the 12 months to 31 March 2011 and 12
months to 31 March 2010 were unqualified and did not include a
statement under Section 498 (2) or (3) of the Companies Act
2006.
In preparing the preliminary announcement, the Directors have
also made reasonable and prudent judgements and estimates and
prepared the preliminary announcement on the going concern basis.
The preliminary announcement and management report contained herein
give a true and fair view of the assets, liabilities, financial
position and profit and loss of the Group.
2. Segmental analysis
IFRS 8 'Operating Segments' requires operating segments to be
determined based on the Group's internal reporting to the Chief
Operating Decision Maker ("CODM"). The CODM has been determined to
be the Operating Board. The Operating Board has determined that the
primary segmental reporting format is geographical, based on the
Group's management and internal reporting structure. The Operating
Board assesses the performance of each segment based on revenue and
gross profit which excludes unallocated central costs such as
warehouse costs, staff costs and other administration costs.
Due to the rapid expansion of the International business during
the year, the Operating Board has expanded its primary reporting
segments and split the previously reported "International" segment
into USA, EU and Rest of World ("RoW"). Comparative information has
been restated to reflect the new reportable segments.
2011
UK USA EU RoW Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 193,392 19,276 76,448 50,575 339,691
Cost of sales (117,515) (12,336) (47,299) (30,851) (208,001)
---------- --------- --------- --------- ----------
Gross profit 75,877 6,940 29,149 19,724 131,690
Administrative
expenses (102,840)
----------
Operating profit
before exceptional
items 28,850
Exceptional items (12,943)
Share of post tax
losses of joint
venture (3)
Finance income 16
Finance expense (215)
----------
Profit before tax 15,705
----------
2010 (restated)
UK USA EU RoW Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 160,014 5,938 42,936 14,111 222,999
Cost of sales (93,710) (3,239) (25,351) (7,563) (129,863)
---------- --------- --------- --------- ----------
Gross profit 66,304 2,699 17,585 6,548 93,136
Administration
expenses (72,825)
----------
Operating profit 20,311
Share of post tax
losses of joint
venture (69)
Finance income 97
----------
Profit before tax 20,339
==========
Due to the nature of its activities, the Group is not reliant on
any individual major customers.
No analysis of the assets and liabilities of each operating
segment is provided to the CODM in the monthly management accounts
therefore no measure of segments assets or liabilities is disclosed
in this note.
There are no significant non-current assets located outside the
UK.
3. Exceptional items
During the year to March 31 2011, exceptional costs of GBP12.9
million were charged to administrative expenses to reflect the
direct costs of the ongoing reorganisation of distribution
following the leasing of a new distribution centre to meet the
increasing capacity needs of the business.
The main components of the exceptional charge are as
follows:
2011
GBP'000
Dual site decollation costs 2,088
Pre go-live occupancy and
employee costs 7,830
Impairment of assets 3,025
Total 12,943
=========
4. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to the owners of the Parent Company by the weighted
average number of ordinary shares in issue during the year. Own
shares held by the ASOS.com Limited Employee Benefit Trust are
eliminated from the weighted average number of ordinary shares.
Diluted earnings per share amounts are calculated by dividing
the profit attributable to the owners 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.
2011 2010
No. of
No. of shares shares
Weighted average share capital
Weighted average shares in issue
for basic earnings per share 74,375,042 72,956,550
Effect of dilutive options 4,844,159 4,940,859
Weighted average shares in issue
for diluted earnings per share 79,219,201 77,897,409
====================== ================
2011 2010
GBP'000 GBP'000
Earnings
Underlying earnings attributable to
shareholders 20,311 14,580
Exceptional items net of related taxation (9,462) -
---------------- ----------------
Earnings attributable to shareholders 10,849 14,580
================ ================
2011 2010
pence pence
Basic earnings per share
Underlying earnings per share (note i) 27.3 20.0
Exceptional items net of taxation (12.7) -
---------------- ----------------
Earnings per share (note ii) 14.6 20.0
================ ================
2011 2010
pence pence
Diluted earnings per share
Underlying earnings per share (note i) 25.6 18.7
Exceptional items net of taxation (11.9) -
---------------- ----------------
Earnings per share (note ii) 13.7 18.7
================ ================
i) Underlying earnings per share has been calculated using
profit after tax but before exceptional items.
ii) Earnings per share has been calculated using profit after
tax and exceptional items.
Under the Management Incentive Plan ("MIP"), the maximum
dilution to existing shareholders will be limited to 5.8%, based on
an issued share capital of 74,740,241 ordinary shares as at 29
January 2010. Assuming maximum dilution in relation to the MIP,
weighted average shares in issue for diluted earnings per share as
at 31 March 2011 would include an additional 3,359,215 shares.
5. Restatement for Future Changes in Accounting
Classification
The Group is considering reclassifying its delivery costs to
operating expenses as delivery investment is increasingly deployed
as a marketing expenditure. Restated gross profit and operating
expenses in 2010 and 2011 if we were to implement this change would
be as follows:
2010 2011
----------- --------------------------------- -----------------------------------
Reported Adjustment Restated Reported Adjustment Restated
----------- --------- ----------- --------- ---------- ----------- ----------
Gross
profit 93,136 18,060 111,196 131,690 34,959 166,649
Operating
expenses (72,825) (18,060) (90,885) (102,840) (34,959) (137,799)
Operating
profit* 20,311 - 20,311 28,850 - 28,850
----------- --------- ----------- --------- ---------- ----------- ----------
* Excluding exceptional items
Restated gross profit by segment would be as follows:
2010 2011
------- --------------------------
H1 H2 Total H1 H2 Total
------- ------- ------- -------- ------- ------- --------
UK 35,485 42,502 77,987 42,388 48,960 91,348
USA 1,123 2,370 3,493 4,113 6,809 10,922
EU 8,873 12,282 21,155 15,344 22,517 37,861
RoW 2,495 6,066 8,561 8,665 17,853 26,518
------- ------- ------- -------- ------- ------- --------
Total 47,976 63,220 111,196 70,510 96,139 166,649
------- ------- ------- -------- ------- ------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UARWRAAANRAR
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