Final Results

RNS Number : 2881N
ASOS PLC
09 June 2010
 



                                                                                                                                                                               

ASOS plc ("Group")

UK's leading online fashion store

Final Results for the year ended 31 March 2010

£'000s

2009/10

2008/09

Increase

Group revenues*

222,999

165,395

35%

-       UK sales

160,014

133,165

20%

-       International sales

62,985

32,230

95%





Gross profit

93,136

71,699

30%

Gross margin

41.8%

43.3%

-150bps

Operating profit

20,311

13,935

46%

Profit before tax (PBT)

20,339

14,125

44%

Earnings per share (diluted)

18.7p

12.8p

46%

Net cash

15,645

13,587

15%

*Includes retail sales, postage and packaging (P&P) income and 3rd party revenues

Key highlights:

·      Group revenues up 35% to £223 million, PBT up 44% to £20.3 million

·      International sales up 95% to £63 million

·      H2 gross margin recovery 

·      Operational leverage delivered

·      Debt-free balance sheet - increase in net cash to £15.6 million

·      Significant increase in offer to 36,000 products at end April 2010, up from 22,000 prior year

·      Number of active customers up 25% year on year to 1.6 million at end April 2010

·      Current trading:  Group retail sales for 9 weeks to 6 June 2010 up 58% (UK 36%, international 118%)

·      £20 million investment into new warehouse with initial capacity of £600 million annual sales

Nick Robertson, CEO, commented:

"These are a strong set of results and the team have again delivered record sales and profits.

 

"We are more confident than at this time last year, with both UK and international sales accelerating well. We are keeping a very close eye on controlling our costs whilst at the same time encouraging the entrepreneurial and innovative spirit that drives all that we do.

 

"We are excited about the future and believe that online fashion will continue to outperform traditional retail channels. We are at the leading edge of our sector and see enormous potential to drive our business forward, both in the UK and internationally."

 

09 June 2010 

 

For further information:

 

                                                    

ASOS plc


Nick Robertson, Chief Executive     

Tel: 0207 457 2020 (Today)

Nick Beighton, Finance Director

Tel: 0207 756 1000 (Thereafter)

Website: www.asos.com




College Hill


Matthew Smallwood / Justine Warren / Jamie Ramsay                

Tel: 020 7457 2020



JPMorgan Cazenove 


Luke Bordewich / Gina Gibson   

Tel: 020 7588 2828



Numis Securities 


Alex Ham                                                                                  

Tel: 020 7260 1000

 

Background note

Established in June 2000 and admitted to AIM in October 2001, ASOS.com is the UK's largest independent online fashion and beauty retailer and offers over 36,000 branded and own label product lines across womenswear, menswear, footwear, accessories, jewellery and beauty with approximately 1,300 new product lines being introduced each week.

Aimed primarily at fashion forward 16-34 year olds, ASOS.com attracts over 8 million unique visitors a month and as at 30 April 2010 had 3.7 million registered users and 1.6 million active customers (defined as having shopped in the last 6 months). www.asos.com

 

 

ASOS plc ("Group")

UK's leading online fashion store

Final Results for the year ended 31 March 2010

 

Chairman's Statement

 

I am pleased to present another set of record results for ASOS. The year was characterised by a more prudent approach in our planning, specifically around stock levels and overheads whilst investing in our UK service proposition and building our international capabilities.  The results, whilst strong, were under-potentialised. The widely predicted slowdown in consumer spending, specifically amongst the younger customer groups did not materialise and the Internet continued its strong growth as a retail channel.  We are more confident for the current year and it has started extremely positively.  We believe the prospects for ASOS, both in the UK and globally, remain very strong.   

 

ASOS is 10 years old this year and has evolved from a small entrepreneurial start-up to a leading UK fashion brand, credited with revolutionising online fashion retail in the UK.  I am pleased to report that the entrepreneurial spirit is still very much alive but supported now by more robust operating procedures, expertise and processes all of which will assist ASOS in delivering its ambitious aim of £1bn sales, in five years from five main markets.

 Management Incentive Plan

As outlined previously, we implemented a Management Incentive Plan ("MIP") in March 2010 to align our senior management team directly with the long term interests of shareholders.  The MIP has a three year performance period ending on 31 March 2012 and is based on challenging Earnings per Share ("EPS") growth targets and Total Shareholder Return ("TSR") conditions.

Dividend

We have decided that in the short term, our shareholders' best interests are served by continuing to reinvest our cash to exploit the substantial growth opportunities both in the UK and overseas.  Accordingly, we have decided not to declare a dividend for shareholders. This policy remains under regular review.

People

Our continued success is the direct result of our committed team and their efforts. On behalf of the Board I would like to thank them all for their contribution.  During the year we appointed two additional non-executive directors to the Board, Karen Jones and Mary Turner, and I would like to thank them both for their valued input so far. 

 

Lord Alli

Chairman



 

Chief Executive's Review

Overview

I am pleased to announce a very strong set of results in a year where the economic conditions were at best uncertain and where we had planned rather more cautiously than in previous years.

We delivered sales of £223 million in 2009/10, an increase of 35% and profit before tax of £20.3 million, an increase of 44%.  As guided, our gross margin recovered strongly in the second half.  Against varying levels of demand, we managed the cost base tightly delivering operating leverage, part of which we re-invested into the customer experience.

Our 16-34 year old customer base proved relatively resilient to the broader economic climate and we were able to introduce new customers to ASOS as a result of our international expansion. 

The investments we made into our service proposition, including free returns and now free delivery, as well as some significant improvements in product design and ranges have meant that we are approaching this year with considerably more confidence.  This is reflected in our recent trading where we have seen sales growth accelerate substantially both in the UK and internationally.

 

KEY PERFORMANCE INDICATORS - UK

2009/10

2008/09

Increase (%)

Sales (£'000)

£160,014

£133,165

20%

Retail margin (excludes 3rd party revenues and postage receipts)

44.4%

45.3%

-90bps

Average basket value (£, inc. VAT)

£62.74

£56.48

11%

Average units per basket

2.57

2.47

4%

Average selling price per unit (£, inc. VAT)

£24.38

£22.87

7%

Number of orders ('000)

3,940

3,441

15%

 

 

KEY PERFORMANCE INDICATORS - International

2009/10

Increase (%)

Sales (£'000)

£62,985

95%

Retail margin (excludes 3rd party revenues and postage

receipts)

48.6%

-200bps

Average basket value (£, inc. VAT)

£80.08

11%

Average units per basket

3.30

7%

Average selling price per unit (£, inc. VAT)

£24.25

4%

Number of orders ('000)

929

83%

 

"The World's Best Fashion" (Choice)

We further increased our product range from 22,000 lines in April 2009 to 36,000 lines as at the end April 2010.  Womenswear and accessories accounted for 72% of sales and we continued to evolve the range into new categories and price points. Our premium range ASOS Black expanded from dresses to the full outfit including shoes and bags. We launched the Green Room, an area dedicated to the sale of ethically sourced brands.  We introduced ASOS Africa, a range sourced and manufactured in Africa.  We introduced a work wardrobe, as well as ranges inspired by vintage classics, ASOS Reclaimed.  Menswear accounted for 20% of sales and attracted a number of big name brands including Paul Smith, Hugo Boss and the sports brands Nike and Adidas. We also introduced menswear into our ASOS Outlet offer.

As we internationalise the product offer, we look forward to introducing a number of new international brands into the mix in the coming seasons.

"The Service I Want" (Service)

We have always stated our desire to achieve a free delivery / free returns proposition and I am pleased to report that we introduced free returns to all our UK customers in September 2009 and as from April 2010 we introduced free supersaver delivery in the UK.  In addition we launched ASOS Premier, an annual subscription service charged at £24.95 entitling customers to a free next day delivery and free returns pick-up on an unlimited number of orders over a 12 month period.  We also offer a returns pick-up service for all customers charged at £2.95.   We are very pleased with our customers' reaction to these initiatives, impacting our main KPI's with positive trends in order frequency, average basket and items per basket. The financial impact is all within budgeted levels. 

The next stage is to improve the delivery options still further allowing customers to order on ASOS and pick up at locations other than their home or office.  A number of conversations are ongoing with leading retail brands in the UK and we should be able to report on progress in the next few months.

Harnessing the main social networks, customers can now contact our customer care teams via facebook and twitter as well as e-mail.

"Inspire and Engage Me" (Presentation)

As planned, we increased our marketing efforts to drive awareness of the ASOS brand.  We sponsored the Next Top Model series on Living TV as well as the recent Capital Radio Summertime Ball.  We also ran an outdoor campaign and partnered with Diet Coke appearing on 42 million cans in March 2010.  I am pleased to report that awareness of the ASOS brand has increased significantly. Prompted brand recognition amongst women aged 16-34 improved from 46% in November 2009 to 62% by March 2010. 

There remains more work to be done, particularly amongst our male customers, and you can expect to see us addressing this in the short to medium term.

Our own magazine remains the key marketing tool and I am pleased to say that ASOS Magazine is the second largest fashion magazine in the country behind Glamour with an audited circulation of 450,000. In February we changed the size to A4 from A5 and have had a positive reaction from both customers and the brands that support us commercially.  Third party revenue (income derived from advertising) stepped up in the year to £2.3 million, up from £1 million in the prior year.

 "The Best Shopping Experience"

Our customers, their online behaviours and their preferred technology platforms are continually evolving.  To date, our website has been the only point of contact with ASOS.  As the use of mobile devices and the new iPad platform gain traction the way our customers transact with ASOS will broaden. 

In recognition of our customers' demands, we are planning to launch ASOS Marketplace this year, a site accessible from the main ASOS site. Customers will be able to re-sell their unwanted wardrobes to other fashion conscious customers as well as enable pre-vetted small boutiques and designers to sell their products directly to the ASOS customer base. 

In addition we will be launching our own fashion aggregator, also accessible from the main ASOS site where customers will be able to browse and purchase high fashion items that are not necessarily sold through ASOS. 

International

Over the course of 2009/10 international sales increased 95% to £63 million, with retail sales up 103%, representing 28% of the business.  In the first nine weeks of the year sales have increased 118%.  All of these sales have been generated from the UK website and despatched from our UK distribution hub.  In total we now ship to 167 countries globally which has been achieved with little or no country-specific marketing or sales initiatives to date.

We see enormous potential for ASOS in international markets and the US in particular. We remain on track to launch our US website in September 2010 and French and German websites will follow later this year.  The US is now our second biggest market outside the UK and is growing at an impressive rate of over 180% per year.  The US online apparel market is forecast to grow from US$23.6 billion in 2008 to US$42.7 billion in 2014 (Source: Forrester, Online Apparel) and has around 75 million 16-34 year olds, our core target customer.

International despatches will continue to be made from our UK based distribution hub in the medium term.  We have established in-country return solutions for our US and Irish customers and expect to go live with French and German solutions later this year.

At present the marketing activities include affiliate campaigns, some paid search, PR and database mining.  When we go live with the language specific sites you can expect us to turn to more traditional forms of marketing to drive awareness and sales. 

 

Outlook

Business outlook

We are confident that the actions we have taken and the number of exciting new initiatives in the pipeline continue to set ASOS apart from any competition and enable us to drive increasing traffic and sales.  There is no 'stand-out' competitor to ASOS - in terms of breadth of range and fashion edge - in either the UK or the main markets we are proposing to focus on.

Our short term strategy is clear: drive profitable growth in the UK as well as take the ASOS proposition to three key international markets by the end of 2010 as well as shipping to over 160 other countries.

The business will continue to be managed from the UK with limited in-country resource and infrastructure required.  In order to accommodate the growth, we are investing £20 million this year in a new, state-of-the-art distribution centre with initial capacity of up to £600 million of sales.  It is anticipated this new facility will be fully operational by mid 2011.

Current trading

Our current sales performance is strong.  For the first nine weeks, our retail sales have increased 58% (UK 36%, International 118%).  It is too early to assume that these trading levels represent a sustainable trend, however, we have entered the year with much more confidence and we will continue focussing on cost control and generating strong cash flow. We are optimistic that 2010/11 will be another year of strong growth for ASOS.

 

Nick Robertson

Chief Executive

  

Finance Director's Review

The Group had another good year in the context of the overall retail landscape. This, however, was a period of under-potentialisation where we held back the investment into our stock levels in the expectation of a lower customer demand. Despite this we continued to invest in our customer proposition with initiatives such as free returns and improved delivery options, whilst improving operational controls and tightly managing our stock and cost base.

Revenues

Total Group revenue increased by 35% to £223 million, as analysed below. 

£'000

2009/10

2008/09

Increase

Retail sales

205,491

149,343

38%

Delivery receipts

15,199

15,084

1%

Third party revenues

2,309

968

139%

Total Group revenue

222,999

165,395

35%

 

Retail sales increased by 38% during the year, with UK growth of 22% and international growth of 103%.

The Group's investment in its delivery proposition, particularly in the second half led to only a slight increase in delivery receipts during the year. These investments included free UK delivery for orders over £75, the launch of ASOS Premier and selective international delivery promotions.

Third party revenues increased significantly on the prior year to £2.3 million. The third party revenues mainly comprise advertising revenues both online and within the ASOS Magazine.

 

2009/10

UK

£'000

International

£'000

Total Group

£'000

Retail sales

147,571

57,920

205,491

Increase

22%

103%

38%





Delivery receipts

10,134

5,065

15,199

Increase/decrease

-11%

39%

1%





Third party revenues

2,309

-

2,309

Increase

139%

-

139%





Total Group revenue

160,014

62,985

222,999

Increase

20%

95%

35%

 

Retail sales in the UK were £147.6 million (up 22%), whereas international sales grew to £57.9 million, up 103%. At 31 March 2010, the international business accounted for around 30% of the Group's retail sales and the main markets were USA, Denmark, France, Australia, Ireland and Germany.

 

During the year we made substantial investments in both the UK and international service proposition, which is reflected in the lower year on year growth in delivery receipts. We implemented our first in-country returns solutions in Ireland.  This was followed post year-end by a further in-country returns solution in the USA. This investment will continue in the current financial year with the launch of the US, French and German websites.  

 

Gross profit

Total gross profit (which includes P&P) increased 30% on the prior year, with the Group achieving a gross margin of 41.8% (2008/09: 43.3%). This represents a 150 basis points decline. 

The Group retail profit grew 35%, achieving a gross margin percentage of 45.6% (2008/09: 46.3%).  In the first half, retail margin at 44.6% declined 370 basis points but recovered strongly in the second half to 46.3%, up 130 basis points.

There was a gross loss for the year from P&P of £2.9 million.  This is through the implementation of free delivery thresholds and free returns.  The cost of free returns is charged directly against the P&P margin. 

2009/10

UK

International

Total Group

Retail gross profit (£'000)

65,546

28,144

93,690

Increase

20%

95%

35%





Retail gross margin (%)

44.4%

48.6%

45.6%

Decrease

90bps

200bps

70bps

 

The UK retail gross margin declined considerably during the first half but recovered strongly in the second half and ended the year down 90 basis points.  The decline in the gross margin was based primarily on increased sourcing costs, incremental markdown from the extra sale period in the first half and a change in the branded / own-label mix compared to prior year. The second half recovery resulted from increased sourcing costs being offset by tighter stock management, which lead to lower levels of markdown.  Moreover, the second half retail gross margin benefited from foreign currency gains.

During 2011, we expect to see the gross margin easing further through the impact of changes in the delivery proposition, raw material and cost inflation.  These inflationary impacts will be partially offset through sourcing gains. 

 

Operating costs

Operating costs were £72.8 million and equated to 33% of sales, a 220 basis points decrease from last year.  This reflects the benefits of economies of scales and operating leverage as the business continues to grow, but also management's focus on tight cost control.

£'000

2009/10

2008/09

Increase

Payroll and staff costs

25,877

22,298

16%

Warehousing

19,399

15,566

25%

Marketing

9,252

6,430

44%

Production

1,999

1,764

13%

Other operating costs

12,976

9,856

32%

Depreciation

3,322

1,850

80%

Operating costs

72,825

57,764

26%

% of sales

32.7%

34.9%

220bps

 

We continued to invest in recruiting people across the business to meet the requirements of our growth, leading to a 16% increase in payroll and staff costs. Average headcount (which excludes the logistics team which is outsourced) increased from 370 to 547 people with the main increases being in technology and operations.

Warehouse costs increased by 25% to £19.4 million, but the operating cost ratio reduced from 9.4% last year to 8.7%. In the first half of the year we upgraded our warehouse management systems at our Hemel Hempstead warehouse. This resulted in productivity gains in the second half of the financial year. 

Marketing costs increased by 44% to £9.3 million due to significant second half investment in increasing our brand awareness both domestically and internationally.  Marketing costs include the ASOS magazine production, direct marketing, creative and PR costs.                                    

Production costs increased 13% to £2 million due to the increased number of lines on the website. During the year efficiency gains were made with production costs representing 1% of retail sales (2009: 1.2%). Production costs relate to preparing, photographing, editing and placing product images on the website and during the year we increased our studio space to service the increased product lines.

Other costs include the head office running costs, IT infrastructure and legal and professional fees. The primary driver of the 32% increase in other costs was the step change of investment in the IT function to support core system replacement and website development. In addition, we acquired additional head office space in the second half in order to accommodate the increased staff levels.

Operating profit

Operating profit for the financial year 2009/10 increased by 46% to £20.3 million. The operating margin improved from 8.4% in 2008/09 to 9.1% in 2009/10.  The 150 basis points gross margin decline was therefore more than fully offset by an improvement in operating cost ratios.

 

Finance income

As a result of lower prevailing interest rates, the finance income achieved on our increased cash balances declined to £0.1 million (2009: £0.3 million).

Interest in joint venture

In September 2008, we acquired a 50% stake in a business called Crooked Tongues Limited for a nominal sum. The business is still in its infancy and the website, www.crookedtongues.com, is a leading authority in trainers and sneakers.  This investment allows us to participate in sales from an additional customer segment. Our share of post tax losses for the financial year was £69,000. 

Taxation

The effective tax rate for the Group was 28.3%, 80 basis points lower than last year and 30 basis points above the UK corporation tax rate of 28.0%.  Going forward, we would expect the effective rate of tax to be broadly consistent with 2010.

Earnings per share

Diluted earnings per share increased by 46% to 18.7p (2009: 12.8p), whilst basic earnings per share also increased 47% to 20.0p (2009: 13.6p). The increase in basic and diluted earnings per share reflects the increase in profit and the lower effective tax rate.                                    

Cash flow and balance sheet

The Group continues to have a strong, cash backed balance sheet which is free from long term liabilities and commitments. Net assets increased during the year by 77% to £45.5 million (2009: £25.7 million).

The Group cash balance increased by £2 million from £13.6 million to £15.6 million.

£' 000

2009/10

2008/09

EBITDA

23,633

16,147

Working capital

(10,667)

(4,770)

Capital expenditure

(8,439)

(8,200)

Taxation

(4,373)

(3,158)

Other creditors

2,593

4,187

Investment in EBT

(805)

(1,929)

Other

116

941

Total

2,058

3,218

 

The increased cash inflow from EBITDA of £23.6 million in the year (up 46%)  was offset by a working capital outflow of £10.7 million combined with increased tax and capital expenditure outflows compared to the prior year.

The Group continues to focus on working capital management. At year end, inventories had increased by 34% to £38 million as we built stock levels to service demand for our Spring Summer 2010 ranges. However, due to more efficient payment of suppliers enabling early settlement discounts to be obtained, the inventory increase was not offset by a counteracting increase in trade creditors.                      

Capital expenditure

Capital expenditure during the year was £8.4 million, a £0.2 million increase on the prior year.

£' 000

2009/10

2008/09

IT

5,470

4,781

Warehouse

2,211

2,749

Office fixtures and fit-out

758

670

Total

8,439

8,200

 

We continued to focus on the development and enhancement of our core systems, with IT expenditure increasing by £0.7 million. During the year we completed the replacement and enhancement of our warehouse management system and the migration to a tier 1 data centre. In 2010, we also commenced work on the replacement of our buying and merchandising system, which will complete in 2011.

Although, warehouse expenditure was lower than prior year, we have continued to invest in measures to improve storage capacity and aid "pick and pack" efficiency.

We anticipate that our ongoing capital expenditure for 2010/11 will be approximately £10 million and that it will be deployed in a similar profile to 2009/10. 

In addition, we are forecasting to spend a further £20 million of capital expenditure in relation to the new warehouse this financial year. We expect that this investment will enable the Group to fulfil £600 million of annual sales capacity with further expenditure in 2011/12 of £13 million and then £6 million in 2012/13, which will further increase the sales capacity. The capital expenditure in relation to the warehousing will return to a more normalised level thereafter. These additional investments, which are dependent on the future sales trajectory, will create further sales fulfilment capacity for the Group to satisfy demand from both our UK and international markets.

All of our investments continue to be funded from operating cash flow, with additional short term facilities to fund any working capital movement or capital expenditure as required.  Currently the Group has committed facilities of up to £20 million. The Group seeks to reduce exposures to interest rate, foreign exchange and other financial risks, to ensure liquidity is available to meet the foreseeable needs and to invest cash assets safely and profitably. Our hedging strategy seeks to hedge our future foreign currency exposure for between 6 and 12 months forward. We do not engage in speculative trading in financial instruments and transact only in relation to underlying business requirements. Surplus funds are invested in short-term deposits with the objective of maximising the return on surplus cash.

 

Nick Beighton

Finance Director

 

 

 

ASOS PLC

CONSOLIDATed statement of COMPREHENSIVE INCOME

for the YEAR ended 31 MARCH 2010

 

 

 









31 March

31 March




2010

2009




£'000

£'000






Revenue



222,999

165,395

Cost of sales



(129,863)

(93,696)






Gross profit



93,136

71,699






Administrative expenses



(72,825)

(57,764)






Operating profit



20,311

13,935






Share of post tax losses of joint venture



(69)

(78)






Finance income



97

268






Profit before tax



20,339

14,125






Income tax expense



(5,759)

(4,116)






Total comprehensive income attributable to owners of the parent

14,580

10,009






 

 

Earnings per share










Basic



20.0p

13.6p

Diluted



18.7p

12.8p


















 

ASOS PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2010

 

 











                2010

2009




     £'000

£'000

Non-current assets





Goodwill



1,060

1,060

Other intangible assets



3,918

1,245

Property, plant and equipment



12,777

10,333

Interest in joint venture



153

162

Deferred tax asset



6,636

3,562




24,544

16,362






Current assets





Inventories



37,728

28,085

Trade and other receivables



4,835

3,404

Derivative financial assets



18

-

Cash and cash equivalents



15,645

13,587




58,226

45,076











Current liabilities





Trade and other payables



(34,839)

(34,135)

Current tax liabilities



(2,453)

(1,594)




(37,292)

(35,729)






Net current assets



20,934

9,347






Net assets



45,478

25,709











Equity





Called up share capital



2,617

2,590

Share premium



4,138

3,608

Employee Benefit Trust reserve



(3,197)

(2,872)

Retained earnings



41,920

22,383






Total equity



45,478

25,709











 

 

  

 

ASos PLC

Consolidated Cash Flow Statement

for the YEAR ended 31 MARCH 2010

 

 






 






 




31 March

31 March

 




2010

2009

 




£'000

£'000

 






 

Operating profit



20,311

13,935

 






 

Adjusted for:





 

Depreciation of property, plant and equipment



3,103

1,792

 

Impairment of property, plant and equipment



-

362

 

Amortisation of other intangible assets



219

58

 

Increase in inventories



(9,643)

(16,391)

 

(Increase) / decrease  in trade and other receivables



(1,449)

1,374

 

Increase in trade and other payables



1,622

15,487

 

Decrease in provision for other liabilities and charges



-

(680)

 

Share-based payments charges



918

262

 

Cash generated from trading operations



15,081

16,199

 






 

Income taxes paid



(4,373)

(3,158)

 






 






 

Net cash generated from operating activities


10,708

13,041







 

Investing activities





 

Payments to acquire other intangible assets



(2,892)

(1,303)

 

Payments to acquire property, plant and equipment



(5,547)

(6,897)

 

Payments to acquire investments in joint venture



(60)

(240)

 

Finance income



97

268

 






 

Net cash outflow used in investing activities



(8,402)

(8,172)

 






 

Financing activities





 

Proceeds from  issue of ordinary shares



557

278

 

Purchase of own shares by Employee  Benefit Trust



(805)

(1,929)

 






 

Net cash used in financing activities



(248)

(1,651)

 






 

Net increase in cash and cash equivalents


2,058

3,218







 

Opening cash and cash equivalents



13,587

10,369

 






 

Closing cash and cash equivalents



15,645

13,587

 

 

ASOS PLC

statements of changes in equity

for the year ended 31 MARCH 2010

 

 

Group

 

 

 


Called up share capital

   Share premium

Retained earnings1

Employee Benefit Trust reserve



£'000

£'000

£'000

£'000







Balance as at 1 April 2008


2,564

3,356

10,967

(943)







Shares allotted in the year


26

252

-

-

Purchase of shares by Employee 

Benefit Trust


 

-

 

-

 

-

 

(1,929)

Employee share schemes


-

-

262

-

Total comprehensive income


-

-

10,009

-

Deferred tax on share options


-

-

711

-

Current tax on items taken directly to equity


-

-

434

-








Balance as at 31 March 2009


2,590

3,608

22,383

(2,872)

25,709

 

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

 

1Retained earnings includes the share-based payments reserve

 

 

 

SELECTED NOTES TO THE FINANCIAL INFORMATION

 

PREPARATION of preliminary announcement

 

a) Basis of preparation

Whilst the information included in this 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 announcement does not itself contain sufficient information to comply with IFRSs.

 

The preliminary announcement for the 12 months to 31 March 2010 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 2009.

 

b) Preliminary announcement

The financial information contained within this preliminary announcement for the 12 months to 31 March 2010 and 12 months to 31 March 2009 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 2009 have been filed with the Registrar of Companies and those for the 12 months to 31 March 2010 will be filed following the Company's annual general meeting.

 

In preparing the preliminary consolidated financial information, the Directors have also made reasonable and prudent judgements and estimates and prepared the preliminary consolidated financial information on the going concern basis. The preliminary consolidated financial information and management report contained herein give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group.

 

The auditors' report on the accounts for the 12 months to 31 March 2010 was unqualified and did not include a statement under Section 498 (2) or (3) of the Companies Act 2006. The auditors' report on the accounts for the 12 months to 31 March 2009 was unqualified and did not include a statement under Section 237(2) or (3) of the Companies Act 1985.

 

SEGMENTAL ANALYSIS

SELECTED NOTES TO THE FINANCIAL INFORMATION

PREPARATION of preliminary announcement

 

a) Basis of preparation

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 which include items such as warehouse costs, staff costs and other administration costs.  The Group has central distribution centres and one head office, which are in the United Kingdom, therefore it is not practical to determine a segmental split of the Balance Sheet.


 
 
2010
 
 
 
2009
 
 
UK
International
Total
 
UK
International
Total
 
£’000
£’000
£’000
 
£’000
£’000
£’000
Revenue
160,014
62,985
222,999
 
133,165
32,230
165,395
Cost of sales
(93,710)
(36,153)
(129,863)
 
(76,336)
(17,360)
(93,696)
Gross profit
66,304
26,832
93,136
 
56,829
14,870
71,699
Administration expenses
 
 
(72,825)
 
 
 
(57,764)
Operating profit
 
 
20,311
 
 
 
13,935
Share of post tax losses of joint venture
 
 
(69)
 
 
 
(78)
Finance income
 
 
97
 
 
 
268
Profit before tax
 
 
20,339
 
 
 
14,125
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

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.

 


2010

2009


No. of shares

No. of shares




Weighted average shares in issue for basic earnings per share

72,956,550

73,635,398

Effect of dilutive options

4,940,859

4,508,766

Weighted average shares in issue  for diluted earnings per share

77,897,409

78,144,164

 

Earnings attributable to shareholders (£'000)

14,580

10,009




Basic earnings per share

20.0p

13.6p




Diluted earnings per share

18.7p

12.8p

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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