Interim Results
September 29 2003 - 9:13AM
UK Regulatory
RNS Number:2906Q
ASOS PLC
29 September 2003
ASOS plc
("ASOS" or "the Group" or "the Company")
ASOS, one of the UK's leading online fashion retailers, today announces its
Interim Report for the six months ended 30th June 2003.
Results Highlights
*Now over 205,000 registered users, up from 137,000 a year ago
*ASOS.com revenue up 169% year-on-year for the six months to June 2003
*Group revenue up 126% year-on-year for the six months to June 2003
*Gross profit up 86% year-on-year to #1.3m for the six months to June 2003
*Group was cash-flow positive for the 6 months to June 2003
*Loss after taxation remained static at #0.3m for the 6 months to June
2003
Commenting upon the Group's Outlook, Chief Executive Nick Robertson said:
"I remain confident about the prospects for the full year in terms of both
growth and profit potential. Our customer base has increased to over 205,000
registered users and the range and depth of product is now stronger than ever.
After substantial capital investment, our technology and logistical platforms
can now handle significant increases in traffic and sales as we approach the
Christmas trading season."
ASOS plc - contacts www.ASOS.com
Nick Robertson, Chief Executive Tel: 020 7240 7070
John Morgan, Finance Director Tel: 020 7240 7070
Note to Editors:
ASOS plc (formerly asSeenonScreen Holdings plc) is a modern retail and marketing
services group. The Group was established in June 2000 and was admitted to AIM
in October 2001.
Its principal business is ASOS.com, a leading online fashion retailer. According
to Hitwise (an independent traffic measurement system) ASOS.com has more site
visitors than its major rivals, Top Shop, River Island and Freemans. The award
winning site is aimed at the 18-30 year old market. Currently the average basket
value is #45 per on-line order and between 500 - 1000 orders are shipped daily,
90% to UK destinations.
It also owns Entertainment Marketing, a marketing business providing product
placement services to a number of blue chip advertisers. This business is
non-core.
Chief Executive's Report
Summary
I am pleased to report continued strong growth for the Group. Revenues rose 126%
to #2.7m, whilst sales for ASOS.com increased 169% to #2.4m. Group losses
remained unchanged at #0.3m, due to a significant increase in advertising spend
for the six months to June 2003.
Importantly, the Group delivered positive operating cash flow for the six months
to June 2003. This was achieved by significantly reducing stock levels. In
addition, substantial operational efficiencies were achieved at the logistics
centre enabling a reduction in the head count, whilst at the same time improving
our customer care and delivery times.
Main Developments
Product range
The strategy of broadening the product range beyond fashion is now well
underway. In the first half some of our most successful products have been
non-fashion related items, such as hair and beauty. This has the effect of
broadening our appeal, increasing average basket sizes and reducing the level of
returns.
We have also started to introduce more basic styles to complement our
high-fashion range. These again increase basket values and help keep levels of
returns low.
Our menswear offer has improved considerably and now represents 16% of sales. We
see this as an area offering high growth potential and will begin marketing
directly to men in 2004.
Advertising
The main thrust of our advertising is our affiliate marketing network and weekly
e-mail to our 205,000 registered users. This is highly cost effective and
generates significant sales. In addition, we continue our strategy of direct
response advertising in magazines such as 'Heat' and 'Now'. As a result we have
maintained our position in the top 5 most visited on-line clothing stores, ahead
of key competitors such as Top Shop (source: Hitwise, September 2003)
Entertainment Marketing
Discussions are still on going with various marketing services groups regarding
the potential sale of this non-core business.
Placing
In July 2003 the Group raised #215,583, net of costs, as additional working
capital in order to support an increase in stock levels for the all-important
Christmas trading period.
Outlook
I remain confident about the prospects for the full year in terms of both growth
and profit potential. The range and depth of product is now stronger than ever.
After substantial capital investment, our technology and logistical platforms
can now handle significant increases in traffic and sales as we approach the
busy Christmas trading season.
Nick Robertson
Chief Executive
30th September 2003
Unaudited Consolidated Profit and Loss Account for
The six months ended 30th June 2003
Audited Results
Unaudited 6 Unaudited 6 for the year
Months Months ended
to 30th June to 30th June 31st December
2003 2002 2002
#'000 #'000 #'000
Turnover 2662 1175 4104
Cost of Sales (1354) (475) (1941)
Gross Profit 1308 700 2163
Administrative Expenses (1526) (826) (2268)
Amortisation of Goodwill (114) (185) (1600)
Operating Loss (332) (311) (1705)
Net Interest (payable) / (5) - 4
receivable
Loss before taxation (337) (311) (1701)
Taxation
Loss after taxation (337) (311) (1701)
Basic and fully diluted (0.55p) (0.51p) (2.76p)
loss per share
All recognised gains and losses are included in the profit and loss account for
the current and preceeding periods and represents the only movement in
shareholders funds.
Unaudited Consolidated Balance Sheet at 30th June 2003
Unaudited 6 Unaudited 6 Audited Results
Months Months at 31st
at 30th June at 30th June December
2003 2002 2002
#'000 #'000 #'000
Fixed Assets
Intangible Assets 1648 3178 1762
Tangible Assets 113 73 71
1761 3251 1833
Current Assets
Stock 383 178 622
Debtors 351 304 713
Cash at bank and in hand 2 - -
735 482 1335
Creditors: amounts falling
due within one year (997) (507) (1331)
Net current assets (262) (25) 4
Total assets less current 1500 3226 1837
liabilities
Capital and Reserves
Called up share capital 2157 2157 2157
Share premium account 2982 2982 2982
Profit and loss account (3639) (1913) (3302)
Shareholders funds 1500 3226 1837
Unaudited Consolidated Summarised Cash Flow Statement For The Six Months Ended
30th June 2003
Unaudited 6 Unaudited 6 Audited Results
Months Months for the year
to 30th to 30th ended 31st
June 2003 June 2002 December 2002
#'000 #'000 #'000
Net cash (outflow) /
inflow from operating
activities ( note 4) 256 (120) (215)
Net cash (outflow) / (5) - 4
inflow from returns on
investments and servicing
of finance
Net cash outflow from (75) (1) (28)
investing activities
Net cash outflow from (1) - (49)
Financing
Increase / (Decrease) in 175 (121) (288)
cash
Notes to the Accounts
1. The results for the six months ended 30th June 2003 have been prepared on
the basis of the accounting policies set out in the audited accounts of the
Company for the year ended 31st December 2002.
2. The interim accounts for the six months ended 30th June 2003 are unaudited
and do not constitute statutory accounts in accordance with section 240 of
the Companies Act 1985. The financial information for the year ended 31st
December 2002 is extracted from the audited financial statements for that
year on which the auditors gave an unqualified report and which do not
contain a statement under Sections 237 (2) or 237 (3) of the Companies Act
1985. A copy of those financial statements has been filed with the Registrar
of Companies.
3. Basic and fully diluted loss per ordinary share has been calculated on the
group's loss for the period attributable to shareholders and on the weighted
number of ordinary shares in issue : 61,629,759 ( 30th June 2002 :
61,629,759, 31st December 2002 : 61,629,759 ). Whilst unexercised share
options would increase the weighted average number of ordinary shares in
issue, however, due to the losses incurred by the Company, they are not
considered dilutive.
4. Notes to the summarised cash flow statement
Reconciliation of operating profit to net cash inflow from operating
activities
Basic and fully Unaudited 6 Unaudited 6 Audited Results
diluted loss per Months To 30th Months to 30th for the year
share June 2003 June 2002 ended 31st
December 2002
#'000 #'000 #'000
Operating loss (332) (311) (1705)
Amortisation 114 185 1600
charge
Depreciation 33 25 57
charge
(Increase) / 239 (12) (456)
Decrease in stock
(Increase) / 362 (58) (468)
Decrease in
debtors
Increase / (160) 51 757
(Decrease) in
creditors
256 (120) (215)
Analysis of net
debt
Cash at bank and in 12 2 -
hand
Bank overdraft (10) (8) (173)
(173)
Due in less than - (50) (1)
one year
Due in more than 2 (56) (174)
one year
5. The Directors are not declaring a dividend for the six months ended 30th
June 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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