TIDMASC
RNS Number : 4781P
ASOS PLC
25 October 2012
25 October 2012
ASOS plc
Global Online Fashion Store
Final Results for the 5 months ended 31 August 2012
Summary results table
GBP'000s 5 months to 5 months Change
to
31 August 31 August
2012 2011
(Audited) (Unaudited
pro forma)
------------------------------- ------------ ------------ -------
Group revenues(1) 238,023 180,044 32%
Retail sales 231,234 174,837 32%
UK retail sales 81,658 72,278 13%
International retail
sales 149,576 102,559 46%
Gross profit 120,131 89,389 34%
Retail gross margin 49.0% 48.1% 90bps
Gross margin 50.5% 49.6% 90bps
Profit before tax and
exceptional items 13,245 9,302 42%
Profit before tax 13,245 3,180 317%
Diluted underlying earnings
per share(2) 11.9 8.5 40%
Diluted earnings per share(3) 11.9 2.9 310%
Net funds(4) 27,884 4,183 567%
------------------------------- ------------ ------------ -------
(1) Includes retail sales, delivery receipts and third 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 including exceptional items of GBPnil (2011: GBP6.1m)
(4) Cash and cash equivalents less bank borrowings
Highlights:
-- Retail sales up 32% (UK retail sales up 13%, International retail sales up 46%)
-- Retail margin up by 90bps and gross margin up by 90bps
-- International retail sales accounted for 65% of total retail sales (2011: 59%)
-- Profit before tax and exceptional items up 42% to GBP13.2m
-- Net funds of GBP27.9m
-- 5 million active customers(5) at 31 August 2012 (+36% year on year)
Nick Robertson, CEO, commented:
"Following our change of year end I am pleased to report another
strong performance for ASOS for the five months ended 31 August
2012, with retail sales up 32% to GBP231m and profit before tax and
exceptional items up 42% to GBP13.2m.
During the period we improved our product offer in terms of
range, quality and price, invested in our customer proposition,
made progress in developing the ASOS platform and continued to
drive efficiencies from the business to fuel our future growth. At
the same time we have reached the milestone of 5 million active
customers worldwide.
We've also made a number of high calibre appointments recently,
including a new Chairman, Executive Director: Product and Trading,
Chief Information Officer, Supply Chain Director and Marketing
Director. Additionally we have secured territory managers for the
USA, France and Germany. These appointments will underpin the
continued development of the business, both in the UK and
internationally.
We remain positive in our outlook for 2012/13 as we continue our
journey to becoming the number one online fashion destination for
twenty-somethings, globally. Our International roll out continues
and our 1:5:5 ambitions for the Group are unchanged."
Unaudited Pro Forma Results for the 12 months ended 31 August
2012
Unaudited pro forma results for the 12 months ended 31 August
2012 have been issued as a separate additional release today.
(5) Defined as having shopped in the last 12 months
Investor and Analyst Meeting
There will be a meeting for investors and analysts that will
take place at 10.15am today, 25 October 2012, at the Museum of
London Docklands, No.1 Warehouse, West India Quay, London, E14 4AL.
A live webcast will be available at www.asosplc.com
For further information:
ASOS plc
Nick Robertson, Chief Executive Tel: 020 7756 1017
Nick Beighton, Finance Director
Greg Feehely, Head of Investor Relations
Website: www.asos.com
College Hill
Matthew Smallwood / Justine Warren / Jamie Tel: 020 7457 2020
Ramsay
JPMorgan Cazenove
Luke Bordewich / Gina Gibson Tel: 020 7742 4000
Numis Securities
Alex Ham Tel: 020 7260 1000
Background note
ASOS is a global online fashion and beauty retailer offering
over 60,000 branded and own label product lines across womenswear,
menswear, footwear, accessories, jewellery and beauty with
approximately 1,500 new product lines being introduced each
week.
Aimed at fashion forward twenty-somethings globally, ASOS
attracts 18.8 million unique visitors a month (Q4 2011 11.1
million) and as at 31 August 2012 the Group had 9.2 million
registered users (31 August 2011: 6.4 million) and 5.0 million
active customers* (31 August 2011: 3.7 million) 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
www.asos.com/au
www.asos.it
www.asos.es
m.asos.com
marketplace.asos.com
fashionfinder.asos.com
ASOS plc ("the Company")
Global Online Fashion Store
Final Results for the 5 months ended 31 August 2012
Business Review
The Group has performed strongly in the period, with revenues up
32% to GBP238.0m (2011: GBP180.0m) and profit before tax and
exceptional items up 42% on the comparative period at GBP13.2m
(2011: GBP9.3m). Profit before tax, which included one-off costs
relating to the warehouse transition in the comparative period,
increased GBP10.0m to GBP13.2m (2011: GBP3.2m).
Total retail sales grew 32% to GBP231.2m (2011: GBP174.8m). The
key driver of retail sales growth continues to be our International
business (up 46%), although UK growth was also encouraging in the
period (up 13%). The International portion of our retail sales mix
has continued to increase during the period and accounted for 65%
of total retail sales (2011: 59%). Despite our investment in
pricing, retail gross margin improved by 90bps on the comparative
period to 49.0% (2011: 48.1%) and our overall gross margin also
improved by 90bps to 50.5% (2011: 49.6%).
Our Fashion
We remain committed to establishing ASOS as the number one
online fashion destination for twenty-somethings, globally. We have
continued to refine our product range and our pricing architecture
to ensure it is clearly focused on the fashion minded
twenty-something. ASOS is increasingly diligent in areas such as
sourcing and markdown management as well as continually augmenting
our retail disciplines, which includes the commencement of a
rationalisation of our supplier base, to deliver gross margin
efficiency that subsequently can be reinvested in customer
proposition and / or pricing, as appropriate. Our strategy remains
that our product collections offer greater value to the ASOS
customer relative to the marketplace, whilst refusing to compromise
on fashionability or product quality.
The sale of third party brands remains very important both to
ASOS and our customers and we have continued to refine our third
party brand offer during the period to ensure that it remains
relevant for twenty-somethings. Over the past 5 months we have
added new Womenswear brands including Little Mistress, Lazy Oaf,
Adidas and in Menswear Esprit, Benetton and Adidas.
The 'ASOS' own-label brand increasingly provides us with a
unique offering that is sought after both in the UK and even more
so internationally. Following our substantial investment in 'ASOS'
own label price points, sales of the 'ASOS' own-label brands
accounted for 49.9% of total sales during the period (2011: 51.3%),
representing a small decline on the comparative period as a
percentage of the total sales mix. However, on a 12 month pro forma
basis the mix of 'ASOS' own label has increased marginally from
51.1% of the total to 51.5%.
Menswear continued to grow particularly strongly during the
period accounting for 24% of total sales (2011: 13%) and as a
result is helping to diversify the Group's revenue streams.
Womenswear remains a more competitive market, which demands that
ASOS is at the top of its game from a fashion, buying and
merchandising and marketing perspective. Historically a key
strength of ASOS Womenswear has been in going-out wear,
particularly in dresses. We have been working hard to augment this
offer with more separates and casualwear. During April 2012, we
completed the process of restructuring and refocusing our pricing
architecture in both Womenswear and Menswear and will keep this
under constant review - our global customer base will continue to
benefit from this through the course of the current year.
Management
We have strengthened our management capabilities across all of
our business verticals to ensure that the executive team has the
diversity of skills, mind-sets and capabilities which the business
needs to thrive and to support our rate of growth as we maintain
our journey to becoming the number one online fashion destination
for twenty-somethings, globally.
On 1 October 2012, we were delighted to announce that Brian
McBride will join ASOS as Chairman with effect from
1 November 2012. Brian has a long and successful background in
technology and retailing, including almost six years as Managing
Director of Amazon in the UK and prior to that he held senior
positions at IBM, Dell and T-Mobile. Brian has a wealth of relevant
experience, not just in e-commerce and technology but in fast
growth International businesses.
On 10 October 2012, we announced that Kate Bostock will be
joining the Group and Board in January 2013 as Executive Director,
Product and Trading. Kate was most recently Executive Director,
General Merchandise and a main Board Director of Marks and Spencer
plc and previously held senior roles at George at ASDA and Next
plc. Kate brings extensive experience from some of the biggest
names in retailing. Her knowledge of the clothing industry,
particularly around product, sourcing, quality control, and supply
base is second to none.
In addition to the above, ASOS has continued to strengthen its
Executive Management Board with a number of recent appointments
including Chief Information Officer, Supply Chain Director and
Marketing Director. As previously disclosed we have also continued
to expand our small in-country management teams. We have appointed
further territory managers for three more offices outside of the
UK, in New York, Berlin and Lille which will complement our
existing team in Sydney, as we seek to amplify our marketing
efforts in the countries where we have websites.
Over the last five months headcount has increased by 84 people,
recruited principally in our Retail, International, Customer Care
and IT departments.
Operations
Delivery and Returns
Delivery and returns solutions are a cornerstone of our
international growth strategy and customer proposition. We continue
to deliver improvements in reduced delivery times (including a 48
hour Express Service to Australia), increased tracked parcels and
mobile notifications. All UK deliveries are now tracked and c.65%
of International deliveries are tracked.
Warehousing
The performance of the Barnsley warehouse has continued to
exceed our expectations despite limited changes to its operating
model. Labour costs per unit improved by 15% over the period.
Additionally we have been given HMRC approval to operate a bonded
(customs) warehouse and are currently in the process of
implementation with the aim of going live at the beginning of 2013.
During the period we received a retrospective reclaim for duty in
relation to inward processing relief of GBP1.1m and we will
continue to reclaim until the bonded warehouse has been
implemented. Customs warehousing will provide ASOS not only with a
cash flow benefit but also improved shipping both inbound and to
our customers.
Business Transformation
As a business we have invested in a team to solely work on
reviewing and reengineering our processes from design to delivery.
This Business Transformation Programme is dedicated to improving
cost, speed, visibility and efficiency of our critical path
ensuring we are the fore-runners of fast fashion and continue to
offer the most desired selection of products to our customers. So
far the Programme, with the implementation of improvements to
internal processes and streamlining the way we work across the
business, has shaved off nearly 2 weeks within our critical
path.
Quality Improvement
We are constantly looking at ways to improve the quality of our
own brand products. We have increased the volume of garments which
are quality control checked at Barnsley from 15% to 65% with all
own-label products being checked by the end of the year. In 2013,
we will be introducing quality control checks at source to further
improve the speed of products being available to purchase on the
site.
Technology re-platforming
We are continuing the process of technology re-platforming and
remain intent on driving our technology to become device agnostic,
so that customers can browse from their laptop, desktop, mobile,
iPad or Android device on a 24/7 basis, wherever they are. Work
continues to enable the ASOS platform, both front and back end, to
handle all language character sets rather than just western.
Progress continues in building the infrastructure, on the
previously indicated timeframe - as such we anticipate
significantly enhanced global capability by beginning of calendar
2014.
We have made significant steps to evolve our platform from a
shop into an engaging experience that permeates our customers'
fashion lives. Mobile is a big part of that as the number of
visitors from devices continues to grow rapidly. Our customer
insight programme helped us to understand that our customers can be
both delighted and challenged by our breadth of choice. To address
this we are increasingly providing ways to edit the choice in
relevant ways for our customer; we have launched new apps 'Fashion
Up' and 'Daily Edit' which focus much more on inspiring, engaging
content rather than presenting a large product catalogue which can
be cumbersome to negotiate on the move. These both link seamlessly
to our mobile shop. We're also launching Live Style Advice where
our stylists help our customers find items and build brand
engagement.
We have continued to evolve our Marketplace and Fashion Finder
platforms in preparation for greater convergence with the core ASOS
platform. For example both platforms now leverage the Facebook Open
Graph to provide a simpler, familiar signup process and enable
greater syndication of content, including the mobile Daily
Edit.
Trading operations
The Group has achieved another strong performance during the
five months to 31 August 2012, with sales and profit growth across
all territories. International sales growth continues to drive
performance and now accounts for 65% of total retail sales compared
to 59% in the comparative period.
Revenue
5 months to 31 August 2012 International
(Unaudited)
------- ------------
GBP'000s UK USA EU RoW Total Group Total
---------------------- ------- ------- ------- ------- -------- ------------
Retail sales 81,658 22,036 50,855 76,685 149,576 231,234
Growth 13% 72% 24% 57% 46% 32%
Delivery receipts 3,035 512 719 904 2,135 5,170
Growth (6%) 74% 27% 76% 55% 12%
Third party revenues 1,617 - 1 1 2 1,619
Growth 165% - - - - 165%
Group revenues 86,310 22,548 51,575 77,590 151,713 238,023
Growth 13% 72% 24% 57% 46% 32%
---------------------- ------- ------- ------- ------- -------- ------------
Total Group revenue increased 32%, with total retail sales up
32% on prior period, driven by 46% growth in our International
retail sales. This is a strong performance given the continued
challenging economic environment facing all of our customers.
The USA was the fastest growing segment within retail sales up
72%, driven by further localising of the trading calendar and
content, investment in digital marketing and social media and
continuing to develop the service proposition. Rest of World sales
continue to perform strongly, up 57%, with continued strong
performances from Australia (where we have maintained our first
place Comscore position), Russia, Singapore and China. In the EU
segment, countries with specific websites have outperformed as we
have been able to present them with a more tailored offer. Based on
Comscore data at August 2012, in respect of unique visitors within
the 15-34 year old demographic, we had risen to fifth in Germany
(March 2012: 14th), sixth in France (March 2012: 12th) and fifth in
Italy (March 2012: eighth).
The UK performance was encouraging and appears to have been
positively impacted by our investment in pricing architecture.
Retail sales grew in the UK by 13% in the period and according to
Comscore, we continue to remain first in the UK for unique visitors
in the 15-34 age range.
Delivery receipts increased by 12% on the comparative period, as
we continued to invest in our global free ship delivery
proposition. In the UK, delivery receipts were down 6% on the
comparative period as customers chose free delivery which has
reduced by 2 days to 4 days.
Third party revenues, which mainly comprise advertising revenues
from the website and the ASOS magazine, increased by 165% on the
comparative period. This was due to increased integrated
advertising campaigns using several platforms and an additional
magazine in the current period.
Trading Key Performance Indicators
At 31 August 2012, ASOS reached the milestone of having 5.0m
active customers(3) with more International than UK active
customers. This demonstrates the success of our international
expansion, but there is still significant opportunity within the
global twenty-something market. The 6% decline in average basket
value was mainly driven by a 5% reduction in average selling price
as a direct consequence of our investment in restructuring and
refocusing our pricing architecture. Average units per basket
showed an overall decline compared to the comparative period of 1%,
however, pleasingly there were increases in markets where the
global free shipping offer is more established.
5 months to 31 August
2012 International
(Unaudited)
Group
KPIs UK USA EU RoW Total Total
---------------------------- --------- --------- --------- --------- --------- ---------
Average basket value(1) GBP62.96 GBP55.38 GBP58.44 GBP56.60 GBP57.12 GBP59.64
Growth (2%) (5%) (8%) (10%) (9%) (6%)
Average units per basket 2.45 2.37 2.48 2.46 2.46 2.45
Growth 3% 2% (4%) (7%) (5%) (1%)
Average selling price
per unit(1) GBP25.74 GBP23.39 GBP23.53 GBP22.96 GBP23.26 GBP24.33
Growth (5%) (7%) (4%) (3%) (4%) (5%)
Number of orders ('000) 2,614 586 1,368 1,485 3,439 6,053
Growth 15% 97% 49% 79% 68% 40%
Unique visitors ('000)(2) 18,800
Growth 69%
Total visits ('000)(2) 12,864 5,947 12,867 13,568 32,382 45,246
Growth 5% 52% 34% 47% 42% 29%
Active customers ('000)(3) 2,254 573 1,217 952 2,742 4,996
Growth 6% 89% 57% 105% 78% 36%
---------------------------- --------- --------- --------- --------- --------- ---------
(1) Including VAT
(2) During August
(3) As at 31 August, defined as having shopped with ASOS during
the last 12 months
Gross profit
The Group generated gross profit of GBP120.1m during the period
(2011: GBP89.4m), up 34% on the comparative period.
International
----------------------- -------- --------
5 months to 31 August
2012 (Unaudited) Group
GBP'000s UK USA EU RoW Total Total
----------------------- -------- -------- --------- ------- ------- --------
Gross profit 40,535 12,969 24,868 41,759 79,596 120,131
Growth 13% 71% 19% 66% 48% 34%
Retail gross margin 43.9% 56.5% 47.5% 53.3% 51.8% 49.0%
Change (20bps) (50bps) (220bps) 270bps 80bps 90bps
Gross margin 47.0% 57.5% 48.2% 53.8% 52.5% 50.5%
Change 10bps (40bps) (220bps) 270bps 90bps 90bps
----------------------- -------- -------- --------- ------- ------- --------
The Group retail gross margin increased by 90bps, despite our
pricing investment, to 49.0% (2011: 48.1%). In the Rest of World
segment, margins improved significantly due to a combination of mix
changes, improved markdown management (Rest of World segment
consumes a greater portion of markdown stock due to being counter
seasonal) and the benefits of the receipt of inward processing
relief. We continue to improve our retail disciplines and this has
led to improved buying and markdown management. Group gross margin
also improved by 90bps to 50.5% (2011: 49.6%).
Investment in our operating resources
The Group increased its investment in its operating resources
and capability by 34% to GBP106.8m, excluding exceptional items.
Total operating costs ratio improved by 170bps excluding investment
in our customer delivery proposition.
5 months
to
31 August 5 months
2012 to
(Audited) 31 August
2011 (Unaudited
GBP'000s pro forma) Change
----------------------------------------- ----------- ------------------ -------
Distribution costs (35,906) (23,186) 55%
Payroll and staff costs (21,035) (17,671) 19%
Warehousing (14,935) (13,665) 9%
Marketing (9,038) (6,819) 33%
Production (1,720) (1,288) 34%
Technology costs (4,020) (3,939) 2%
Other operating costs (15,082) (10,388) 45%
Depreciation and amortisation (5,053) (2,914) 73%
----------------------------------------- ----------- ------------------ -------
Operating costs excluding exceptional
items (106,789) (79,870) 34%
Operating costs excluding distribution
costs and exceptional items (70,883) (56,684) 25%
% of sales excluding distribution costs 29.8% 31.5% 170bps
----------------------------------------- ----------- ------------------ -------
Delivery and returns solutions continue to be a cornerstone of
our international growth strategy and customer proposition. As a
result we continue to invest in our delivery proposition and in
particular our global free shipping commitment. Distribution costs
have, as a result, increased by 55% on the comparative period due
to a combination of increased order numbers but also increased
delivery costs associated with reduced delivery times, increased
tracked parcels and mobile notifications. It should be noted that
all UK deliveries are now tracked.
Payroll and staff costs have increased by 19%, as we continue to
invest in headcount in our key areas of IT, Retail and
International whilst benefiting from economies of scale and
delivering operating cost leverage.
The performance of the Barnsley warehouse has continued to
exceed our expectations despite limited changes to the labour
intensive operating model of our previous warehouse. Labour costs
per unit improved by 15% over the period and total warehouse costs
were up only 9% on the comparative period, despite a 40% increase
in the number of orders.
The increase in other operating costs on the comparative period
was driven by increased credit card handling fees resulting from
the number of transactions processed and increased property costs
from additional head office space acquired.
Group Profit
The Group generated profit before tax and exceptional items up
42% on the comparative period at GBP13.2m (2011:GBP9.3m).
5 months 5 months
to to
31 August 31 August
2012 2011
(Audited) (Unaudited
GBP'000s pro forma) Change
----------------------------------------------- ----------- ------------- -------
Revenue 238,023 180,044 32%
Cost of sales (117,892) (90,655)
----------------------------------------------- ----------- ------------- -------
Gross profit 120,131 89,389 34%
Distribution costs excluding exceptional
items (35,906) (23,186)
Administrative expenses excluding exceptional
items (70,883) (56,684)
----------------------------------------------- ----------- ------------- -------
Operating profit before exceptional
items 13,342 9,519 40%
Net finance costs (97) (217)
----------------------------------------------- ----------- ------------- -------
Profit before tax and exceptional items 13,245 9,302 42%
Exceptional items - (6,122)
----------------------------------------------- ----------- ------------- -------
Profit before tax 13,245 3,180 317%
Income tax expense (3,341) (843)
----------------------------------------------- ----------- ------------- -------
Profit after tax 9,904 2,337 324%
----------------------------------------------- ----------- ------------- -------
Exceptional items
The transition to our new warehousing facilities was completed
during the year to 31 March 2012 therefore no further exceptional
items were incurred during the 5 months to 31 August 2012. The cash
outflow during the period as a result of utilisation of exceptional
property provisions during the period to 31 August 2012 was
GBP0.9m.
The main components of the exceptional charge to the profit and
loss account are as follows:
5 months to 5 months
to
31 August 31 August
2012 2011
(Audited) (Unaudited
GBP'000s pro forma)
----------------------------- --- ------------- -------------
Dual site decollation costs - (4,324)
Pre go-live occupancy and
employee costs - (560)
Vacant property costs - (1,238)
Impairment of assets - -
Total - (6,122)
---------------------------------- ------------ -------------
Taxation
The effective tax rate (pre exceptional items) for the Group was
25.2%, 90bps lower than last year. Including exceptional items the
effective tax rate was 25.2% (2011: 26.5%). Going forward, we would
expect the effective rate of tax pre exceptional items to be around
1% higher than the prevailing UK corporation tax rate.
Earnings per share
Basic underlying earnings per share(1) increased by 37% to 12.5p
per share (2011: 9.1p), and diluted underlying earnings per
share(1) increased by 40% to 11.9p per share (2011: 8.5p).
Basic earnings per share(2) increased by 303% to 12.5p per share
(2011: 3.1p), and diluted earnings per share(2) increased by 310%
to 11.9p per share (2011: 2.9p).
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 global growth opportunities
both in the UK and Internationally. Accordingly, it has decided not
to pay a dividend for the 5 months ended 31 August 2012. This
policy remains under regular review.
Statement of Financial Position
The Group enjoys a robust financial position including a strong
cash balance and a clean stock position. Net assets increased by
GBP10.8m to GBP106.0m (31 March 2012: GBP95.2m), driven by the
increase in profit after tax for the period.
Underlying earnings per share has been calculated using profit
after tax but before exceptional items.
(2) Earnings per share has been calculated using profit after
tax and exceptional items.
Statement of Cash Flows
The Group's cash balance was GBP27.9m at 31 August 2012, up from
GBP14.2m at 31 August 2011. Net funds were GBP27.9m (31 August
2011: GBP4.2m). The summary cash flow is detailed below.
5 months to 5 months to
31 August 31 August
2012 2011
(Audited) (Unaudited
GBP'000s pro forma)
------------------------------------------------ ------------ ------------
Operating profit 13,342 3,397
Exceptional items - 6,122
------------------------------------------------ ------------ ------------
Operating profit before exceptional items 13,342 9,519
Depreciation and amortisation 5,053 2,914
Working capital (1,184) 6,325
Share-based payments charges 344 393
Tax paid - (2,268)
------------------------------------------------ ------------ ------------
Cash inflow from operating profit before
exceptional items 17,555 16,883
Operating cash outflow relating to exceptional
items (935) (9,425)
------------------------------------------------ ------------ ------------
Cash inflow from operating profit 16,620 7,458
Capital expenditure (8,017) (7,943)
Proceeds from issue of ordinary shares 321 452
Cash received/(paid) on exercise of shares
from Employee Benefit Trust 9 (246)
(Repayment)/drawdown of revolving credit
facility (5,000) 10,000
Net interest paid (364) (217)
Total cash inflow 3,569 9,504
------------------------------------------------ ------------ ------------
Cash generated from operating profit before exceptional items
increased by GBP0.7m, with EBITDA improvements of GBP6.0m and a
GBP2.3m reduction in tax payments being largely offset by a
movement in working capital cash flows of GBP7.5m. The additional
working capital outflow in the current period is due to changes in
the stock intake profile compared to the comparative period, with
later receipt of Spring Summer season stock and earlier receipt of
stock for the Autumn Winter season in the 5 months to 31 August
2012.
Our investments are funded by operating cash flows, with
additional short term and medium term facilities to support working
capital movements and planned capital expenditure. At 31 August
2012, the Group had in place an undrawn GBP20.0m revolving loan
credit facility which includes an ancillary GBP10.0m guaranteed
overdraft facility and which is available until July 2015.
Fixed asset additions
5 months
to 5 months to
31 August 31 August
2012 2011
(Unaudited) (Unaudited
GBP'000 pro forma)
----------------------------- ------------- ------------
IT 5,213 5,757
Office fixtures and fit-out 854 768
Warehouse 802 605
Total 6,869 7,130
----------------------------- ------------- ------------
The majority of fixed asset additions were related to
improvements in our underlying IT infrastructure to ensure capacity
for peak trade and continuing our re-platforming to support ASOS
future growth (particularly the requirements that come with
extending our International offering). In addition we have invested
in a time management system for the warehouse to aid efficiency and
a human resource system to manage all aspects of people management
from recruitment to performance management to payroll.
Outlook
We remain confident in our outlook for 2012/13 with our
International operations continuing to drive growth, whilst the UK
business performance is encouraging. Our 1:5:5 ambitions of
achieving GBP1bn sales from five major markets by 2015 are in
sight.
Nick Robertson Nick Beighton
Chief Executive Officer Finance Director
Audited Consolidated Statement of Comprehensive Income
For the 5 months ended 31 August 2012
5 months to Year to 31 March 2012
31 August 2012
Total Before Exceptional Total
exceptional items
items
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 238,023 494,957 - 494,957
Cost of sales (117,892) (242,987) - (242,987)
---------------- ------------- ------------ ----------
Gross profit 120,131 251,970 - 251,970
Distribution expenses (35,906) (65,840) (2,258) (68,098)
Administrative expenses (70,883) (144,346) (8,327) (152,673)
---------------- ------------- ------------ ----------
Operating profit 13,342 41,784 (10,585) 31,199
Finance expense (97) (850) - (850)
---------------- ------------- ------------ ----------
Profit before tax 13,245 40,934 (10,585) 30,349
Income tax (expense)/credit (3,341) (10,685) 2,615 (8,070)
Profit for the period
and total comprehensive
income attributable
to owners of the
parent 9,904 30,249 (7,970) 22,279
---------------- ------------- ------------ ----------
Earnings per share(1)
Basic 12.5 29.3p
Diluted 11.9 26.7p
----- ------ ------
Underlying earnings
per share(2)
Basic 12.5 39.8p
Diluted 11.9 36.3p
----- ------ ------
(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 5 months ended 31 August 2012
Employee
Called Benefit
up 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
2011 2,661 5,194 67,540 (3,275) 72,120
Shares allotted in
the year 38 555 - - 593
Net purchase of shares
by
Employee Benefit
Trust - - - (1,592) (1,592)
Transfer of shares
from Employee Benefit
Trust on exercise - - (1,935) 1,935 -
Share based payments
charge - - 648 - 648
Profit for the year
and total comprehensive
income - - 22,279 - 22,279
Deferred tax on share
options - - (6,386) - (6,386)
Current tax on items
taken directly to
equity - - 7,573 - 7,573
Balance as at 31
March 2012 2,699 5,749 89,719 (2,932) 95,235
---------- ----------- ------------- ---------- ----------
Shares allotted in
the year 155 356 - - 511
Cash received on
exercise of shares
from Employee Benefit
Trust - - - 9 9
Transfer of shares
from Employee Benefit
Trust on exercise - - (459) 459 -
Share based payments
charge - - 344 - 344
Profit for the period
and total comprehensive
income - - 9,904 - 9,904
Deferred tax on share
options - - (1,949) - (1,949)
Current tax on items
taken directly to
equity - - 1,933 - 1,933
Balance as at 31
August 2012 2,854 6,105 99,492 (2,464) 105,987
------ ------ -------- -------- --------
(1) Retained earnings includes the share-based payments
reserve
Audited Consolidated Statement of Financial Position
As at 31 August 2012
31 August 31 March
2012 2012
GBP'000 GBP'000
Non-current assets
Goodwill 1,060 1,060
Other intangible assets 22,176 19,959
Property, plant and equipment 27,293 27,694
Deferred tax asset 8,111 9,876
------------ ---------
58,640 58,589
------------ ---------
Current assets
Inventories 100,263 80,574
Trade and other receivables 19,066 19,503
Current tax asset 425 2,018
Cash and cash equivalents 27,884 24,315
------------ ---------
147,638 126,410
------------ ---------
Current liabilities
Trade and other payables (100,291) (83,829)
Revolving credit facility - (5,000)
Provisions - (935)
(100,291) (89,764)
------------ ---------
Net current assets 47,347 36,646
Net assets 105,987 95,235
------------ ---------
Equity attributable to owners of the parent
Called up share capital 2,854 2,699
Share premium 6,105 5,749
Employee Benefit Trust reserve (2,464) (2,932)
Retained earnings 99,492 89,719
Total equity 105,987 95,235
------------ ---------
Audited Consolidated Statement of Cash Flows
For the 5 months ended 31 August 2012
5 months Year to
to 31 March
31 August
2012 2012
GBP'000 GBP'000
Operating profit 13,342 31,199
Adjusted for:
Operating exceptional items - 10,585
Depreciation of property, plant and equipment 2,542 4,937
Amortisation of other intangible assets 2,511 3,137
Increase in inventories (19,689) (14,480)
Decrease/(increase) in trade and other
receivables 437 (9,381)
Increase in trade and other payables 18,068 19,995
Share-based payments charges 344 648
Income taxes received - 1,012
----------- ----------
Net cash generated from operating activities
before exceptional items 17,555 47,652
Cash outflow relating to exceptional operating
items (935) (10,152)
----------- ----------
Net cash generated from operating activities 16,620 37,500
Investing activities
Payments to acquire other intangible assets (5,672) (12,669)
Payments to acquire property, plant and
equipment (2,345) (8,918)
Net cash outflow from investing activities (8,017) (21,587)
Financing activities
Proceeds from issue of ordinary shares 321 593
Net exercise/(purchase) of shares by Employee
Benefit Trust 9 (1,592)
(Repayment)/drawdown of revolving credit
facility (5,000) 5,000
Finance expense (364) (278)
----------- ----------
Net cash (used in)/generated from financing
activities (5,034) 3,723
Net increase in cash and cash equivalents 3,569 19,636
----------- ----------
Opening cash and cash equivalents 24,315 4,679
Closing cash and cash equivalents 27,884 24,315
----------- ----------
Reconciliation of net cash flow to movement in net funds
5 Months Year to
to 31 March
31 August
2012 2012
GBP'000 GBP'000
Net funds at beginning of the period 19,315 4,679
Increase in cash and cash equivalents 3,569 19,636
Decrease/(increase) in revolving credit
facility liability 5,000 (5,000)
----------- ----------
Net funds at end of the period 27,884 19,315
----------- ----------
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 financial information contained within this preliminary
announcement for the five months to 31 August 2012 and year to 31
March 2012 do not comprise statutory financial statements within
the meaning of section 434 the Companies Act 2006. The Annual
Report and Accounts for the year to 31 March 2012 have been filed
with the Registrar of Companies and those for the five months to 31
August 2012 will be filed following the Company's annual general
meeting. The preliminary announcement for the five months to 31
August 2012 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 2012.
The condensed consolidated financial information should be read
in conjunction with the Group's Annual Report and Accounts for the
five months ended 31 August 2012, which have been prepared in
accordance with IFRSs as adopted by the European Union. The
auditors' report on those accounts was unqualified, did not include
a reference to any matters to which the auditors drew attention by
way of emphasis without qualifying the report and did not contain
statements under s498(2) or s498(3) of the Companies Act 2006.
The Group's business activities together with the factors that
are likely to affect its future developments, performance and
position are set out in the Business Review. The Business Review
describes the Group's financial position, cash flows and borrowing
facilities and also highlights the principal risks and
uncertainties facing the Group. The Annual Report and Accounts for
the five months to 31 August 2012 includes the Group's objectives,
policies and processes for managing its capital; its financial risk
management objectives; details of its financial instruments; and
its exposures to credit risk and liquidity risk.
The directors have reviewed current performance and forecasts,
combined with expenditure commitments, including capital
expenditure. After making enquiries, the directors have a
reasonable expectation that the Group has adequate financial
resources to continue its current operations, including contractual
and commercial commitments for the foreseeable future despite the
current uncertain economic outlook. For this reason, they have
continued to adopt the going concern basis in preparing the
financial statements.
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.
b) Accounting policies
The Financial Statements have been prepared in accordance with
the accounting policies set out in the 2012 Annual Report and
Accounts for the five months to 31 August 2012.
c) Exceptional items
The Group separately identifies and discloses significant
one-off or unusual items which can have a material impact on
absolute profits. These are termed 'exceptional items' and are
disclosed separately in the statement of comprehensive income in
order to provide an understanding of the Group's underlying
financial performance. Exceptional items are judgemental in their
nature and may not be comparable to similarly titled measures used
by other companies. Further details of exceptional items are
included in Note 3 to this release.
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 Executive Board. The Executive Board has determined that the
primary segmental reporting format is geographical by customer
location, based on the Group's management and internal reporting
structure. The Executive Board assesses the performance of each
segment based on revenue and gross profit after distribution
expenses, which excludes administrative expenses and exceptional
items.
5 Months to 31 August 2012
UK USA EU RoW Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Retail sales 81,658 22,036 50,855 76,685 231,234
Delivery receipts 3,035 512 719 904 5,170
Third party revenues 1,617 - 1 1 1,619
---------- --------- --------- --------- ----------
Total revenue 86,310 22,548 51,575 77,590 238,023
Cost of sales (45,775) (9,579) (26,707) (35,831) (117,892)
---------- --------- --------- --------- ----------
Gross profit 40,535 12,969 24,868 41,759 120,131
Distribution costs (8,413) (7,102) (7,436) (12,955) (35,906)
---------- --------- --------- --------- ----------
Segment result 84,225
Administrative expenses (70,883)
----------
Operating profit 13,342
Finance expense (97)
----------
Profit before tax 13,245
----------
Year to 31 March 2012
UK USA EU RoW Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Retail sales 197,859 39,959 106,993 136,751 481,562
Delivery receipts 7,073 825 1,449 1,430 10,777
Third party revenues 2,555 10 25 28 2,618
---------- --------- --------- --------- ----------
Total revenue 207,487 40,794 108,467 138,209 494,957
Cost of sales (108,314) (16,096) (53,953) (64,624) (242,987)
---------- --------- --------- --------- ----------
Gross profit 99,173 24,698 54,514 73,585 251,970
Distribution costs before
exceptional items (17,890) (11,037) (16,227) (20,686) (65,840)
---------- --------- --------- --------- ----------
Segment result before
exceptional items 81,283 13,661 38,287 52,899 186,130
Administrative expenses
before exceptional items (144,346)
----------
Operating profit before
exceptional items 41,784
Exceptional items (10,585)
Finance expense (850)
----------
Profit before tax 30,349
----------
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 material non-current assets located outside the
UK.
3. Exceptional items
During the year to 31 March 2012, exceptional costs of GBP10.6m
were charged to operating expenses to reflect the direct costs of
the completion of the reorganisation of distribution following the
leasing of a new distribution centre to meet the increasing
capacity needs of the business. The reorganisation was completed
during the year to 31 March 2012 therefore there is no exceptional
charge for the period to 31 August 2012.
The main components of the exceptional charge are as
follows:
5 months Year to
to 31 March
31 August 2012
2012 GBP'000
GBP'000
Dual site decollation costs - 5,385
Pre go-live occupancy and
employee costs - 965
Vacant property costs - 1,435
Impairment of assets - 2,800
------------ ----------
Total - 10,585
------------ ----------
Included within dual site decollation costs for the year to 31
March 2012 were delivery costs of GBP2.3m which were classified
within distribution expenses in the statement of comprehensive
income. The remaining exceptional costs were included within
administrative expenses.
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 period. 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
period, adjusted for the effects of potentially dilutive share
options.
31 August 31 March
2012 2012
No. of shares No. of shares
Weighted average share capital
Weighted average shares in issue for
basic earnings per share 79,078,431 75,914,855
Effect of dilutive options 3,951,661 7,405,148
-------------- --------------
Weighted average shares in issue for
diluted earnings per share 83,030,092 83,320,003
-------------- --------------
31 August 31 March
2012 2012
GBP'000 GBP'000
Earnings
Underlying earnings attributable to
shareholders 9,904 30,249
Exceptional items net of related taxation - (7,970)
---------------- ----------------
Earnings attributable to shareholders 9,904 22,279
---------------- ----------------
31 August 31 March
2012 2012
pence pence
Basic earnings per share
Underlying earnings per share(1) 12.5 39.8
Exceptional items net of taxation - (10.5)
---------------- ----------------
Earnings per share(2) 12.5 29.3
---------------- ----------------
31 August 31 March
2012 2012
Pence pence
Diluted earnings per share
Underlying earnings per share(1) 11.9 36.3
Exceptional items net of taxation - (9.6)
---------------- ----------------
Earnings per share(2) 11.9 26.7
---------------- ----------------
(1) Underlying earnings per share has been calculated using
profit after tax but before exceptional items.
(2) Earnings per share has been calculated using profit after
tax and exceptional items.
4,000,822 shares were included in dilutive options at 31 March
2012 under the Management Incentive Plan. These shares were issued
on 31 May 2012 and are held by a nominee on behalf of participants
until vesting. Due to the timing of the issue of these shares,
during the five months to 31 August 2012, 2,405,723 were included
in weighted average shares in issue for basic earnings per share
and 1,595,099 were included in weighted average shares in issue for
diluted earnings per share.
5. Reconciliation of net funds
31 August 31 March
2012 2012
GBP'000 GBP'000
Net movement in cash and cash
equivalents 3,569 19,636
Repayment/(drawdown) of revolving
credit facility 5,000 (5,000)
---------- ---------
Net movement in net funds 8,569 14,636
Opening net funds 19,315 4,679
---------- ---------
Closing net funds 27,884 19,315
---------- ---------
Closing net funds comprises:
Cash and cash equivalents 27,884 24,315
Drawings under revolving credit
facility - (5,000)
---------- ---------
Net funds 27,884 19,315
---------- ---------
The Group has a GBP20.0m revolving loan credit facility which
includes an ancillary GBP10.0m guaranteed overdraft facility and
which is available until July 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR USVNRUNARUAA
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