Disposal of Lichfield fulfilment centre
Summary by AI BETAClose X
FOR IMMEDIATE RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
11 May 2026
ASOS Plc
Global Online Fashion Destination
"ASOS" or the "Company"
ASOS announces disposal of Lichfield fulfilment centre
ASOS today announces that it has agreed terms for the disposal of its Lichfield fulfilment centre (the "Transaction") to Marks and Spencer Plc ("M&S") following a competitive sale process. The disposal of Lichfield marks another step in the structural transformation of the financial position of ASOS, with net proceeds of at least £66m and annual cash cost savings of c.£6m. The Transaction constitutes a significant Transaction under UKLR 7, as it exceeds the 25% threshold under the applicable 'Consideration to Market Capitalisation Test'.
Strategic Rationale: Continued execution of ASOS's Efficient Operating Model
Over the last three years, improvements in stock turn and the scaling of Flexible Fulfilment, including the launch of ASOS Fulfilment Services ("AFS") in H2 FY25, have resulted in structurally lower capacity requirements. The disposal of the Lichfield fulfilment centre reflects ASOS's continued progress against its Efficient Operating Model strategic pillar with a focus on simplifying operations and follows the earlier decision to mothball the site to address excess capacity. The Group's fulfilment centres in Barnsley and Berlin provide sufficient capacity to support future growth.
Following the disposal of the Lichfield fulfilment centre, the Group has one further non-core asset that has been fully written down, its Atlanta fulfilment centre.
The Board considers the Transaction to be in the best interests of the Company and its shareholders with any potential risks outlined in the Notes section below.
Financial Impact
The net sale proceeds are expected to be at least £66m, with annual cash savings of c.£6m relating to rent and other occupancy costs. The Transaction is expected to result in a one-off profit before tax of c.£85m after adjustments to associated property liabilities and will be recognised as an adjusting item in the Group's financial results for the period during which the Transaction is completed. We expect the Transaction to complete during H2 FY26. The net proceeds will add to the Group's cash position of £209.5m as at 1 March 2026, resulting in a pro forma net debt (excluding lease liabilities) position of c.£228m.
The disposal of Lichfield is another important step forward in the transformation of the financial position of ASOS, following refinancing in November 2025 and the repayment of the 2026 convertible bonds last month. The Transaction crystallises significant value from a non-core asset. The net proceeds will be used to maintain financial flexibility to execute the Group's strategy.
Jose Antonio Ramos, ASOS CEO, said:
"The disposal of our Lichfield fulfilment centre represents a further step in strengthening ASOS's balance sheet and improving our capital efficiency. This transaction enables us to unlock value from one of our non-core assets while reducing our ongoing cost base, consistent with the actions we have taken over the past three years to simplify the business and enhance financial resilience. ASOS is a well-invested business and we have significant capacity to support future growth. We will continue to maintain a disciplined approach to capital allocation as we execute our strategy."
The person responsible for arranging the release of this announcement on behalf of the Company is Rishi Sharma, General Counsel and Company Secretary.
For further information:
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ASOS plc |
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Phil Clark, Head of Strategy & Investor Relations |
Email: InvestorEnquiries@asos.com |
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Hannah Alderman, Investor Relations Manager |
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Teneo |
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Jonathan Sibun / Will Palfreyman |
Tel: 020 7353 4200 |
About ASOS
Founded in 2000, ASOS has 17m active customers in over 100 markets. We bring fashion lovers around the world the best and most relevant fashion through our unique own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop and Topman, styled with the most exciting products from local and global partner brands. With our expert in-house design team and agile and flexible commercial model, including ASOS Fulfilment Services, Partner Fulfils, and Test & React, we make the latest trends accessible to all and give customers the confidence to be whoever they want to be.
Forward looking statements
This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, ASOS plc undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.
Notes
The gross assets attributable to the Lichfield fulfilment centre and subject to the Transaction consist of property, plant and equipment, intangible assets and right-of-use assets. These assets had a carrying amount of £nil at 1 March 2026, following impairments recognised in prior periods as a result of mothballing the site. On completion, the Transaction is expected to result in a profit before tax of c.£85m, comprising a reversal of previously recognised impairment charges and a gain on derecognition of the aforementioned assets, lease liabilities and lease-related provisions. Net cash proceeds from the Transaction, after transaction costs, is expected to be at least £66m, representing a one-off benefit in FY26. In addition, the disposal is expected to increase future cash flow through the removal of c.£6m annualised cash costs. Following completion, the Group will have no further assets or liabilities in respect of the Lichfield fulfilment centre on its balance sheet.
The information required by UKLR Annex 2.2 is not available, and as referenced in the main body of this announcement, the net proceeds from the Transaction are at least £66m with a one-off profit before tax of c.£85m.
PRINCIPAL TERMS OF THE TRANSACTION
Following a competitive sale process, on 09 May 2026, ASOS.com Limited and Marks and Spencer plc entered into a contract for the sale and purchase of a leasehold intertest in the fulfilment centre located at Fradley 437, Halifax Avenue, Fradley Park, Lichfield WS13 8SS (the "Property"). Under the terms of the Transaction, ASOS.com Limited agreed to sell its leasehold interest in the Property and its automation machinery located at the Property for cash consideration of £67.5m.
Completion of the Transaction is subject to obtaining customary consents and is expected to occur in H2 2026.
RISK FACTORS
ASOS shareholders should carefully consider, together with all other information contained in this announcement, the specific factors and risks described below.
The Company considers these to be the known material risk factors relating to the Transaction. There may be other risks of which the Board is not aware or which it believes to be immaterial which may be connected to the Transaction and have a material and adverse effect on the business, financial condition, results of operations or future prospects of the ASOS Group. The risks disclosed below are those which ASOS considers: (i) are material risks related to the Transaction; or (ii) are existing material risks for the ASOS group which will be impacted by the Transaction. The risks described below are not set out in any order of priority, assumed or otherwise.
RISKS RELATING TO THE TRANSACTION
1. The Transaction may not proceed to Completion
Completion is subject to certain consents under the contract. There is no guarantee that each of these consents will be granted and, as such, no certainty that the Transaction will proceed to completion.
If the Transaction does not proceed to completion, the ASOS group will not receive the consideration from, and may not realise any of the potential benefits of, the Transaction and this may have an impact on the perceived value of the Property. There can be no guarantee of another transaction involving the sale of the Property on terms more favourable than, or equivalent to, the current Transaction. Regardless of whether the Transaction proceeds to completion, ASOS has committed significant time and resources to the Transaction. In addition, the media could portray the non-completion of the Transaction as a strategic failure of ASOS which could erode confidence among investors and stakeholders. This could, in turn, have a material adverse effect on the ASOS group's business prospects, financial results and overall financial condition. Failure to complete the Transaction may also have a negative impact on the group's ability to deliver on its future strategy. This may be the case even if the failure to complete the Transaction is outside of ASOS' control. Without the consideration, it may take longer or be difficult for ASOS to increase its balance sheet strength and flexibility or to accelerate ASOS' core strategic priorities. This may result in delayed recovery in ASOS' growth and profitability or deterioration of ASOS' perceived creditworthiness by third parties, which in turn may impact the group's operations.
2. ASOS and certain members of the Group may incur liability under the contract
The contract contains warranties and other contractual protections given by ASOS. M&S has undertaken a due diligence and disclosure process to minimise the risk of liability under these provisions. Although the contract contains customary limitations relating to the liability of ASOS, any liability to make a payment arising from a successful claim under any of the relevant provisions of the contract would reduce the consideration and could have an adverse effect on the cash flow and financial condition of the ASOS group.
EXISTING MATERIAL RISKS TO ASOS GROUP THAT WILL BE IMPACTED BY THE TRANSACTION
1. The market price of shares in ASOS may fluctuate on the basis of market sentiment surrounding the Transaction
Shareholders should be aware that the value of an investment in ASOS may go down as well as up and can be highly volatile. The price at which shares in ASOS may be quoted and the price which investors may realise for their shares will be influenced by a large number of factors, some specific to ASOS and its operations and some which may affect online fashion retailers or publicly traded companies as a whole, or other comparable companies. The sentiments of the stock market regarding the Transaction will be one such factor and this, together with other factors including actual or anticipated fluctuations in the financial performance of ASOS and its competitors, market fluctuations, and legislative or regulatory changes for the retail sector, could lead to the market price of the shares going up or down.
MATERIAL LITIGATION
1. ASOS
There are no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which ASOS is aware), during the period covering the 12 months preceding the date of this announcement, which may have, or have had in the recent past, significant effects on the financial position or profitability of ASOS.
2. THE PROPERTY
There are no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which ASOS is aware), during the period covering the 12 months preceding the date of this announcement which may have, or have had in the recent past, significant effects on the Property.
SIGNIFICANT CHANGE STATEMENT
There has been no significant change to the financial position or financial performance of the Group since 23 April 2026, being the date to which ASOS's last interim financial information was published.
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