Interim Results
asSeenonScreen Holdings PLC
26 September 2002
AS SEEN ON SCREEN HOLDINGS PLC ('ASOSH' or the 'Group')
Interim Report for the six months ended 30th June 2002
I am pleased to report our interim results for the six months ended 30 June
2002.
ASOSH was incorporated in June 2000 and in September 2000 acquired its two
subsidiaries, asSeenonScreen.com Ltd ('ASOS') and Entertainment Marketing UK Ltd
('EM').
ASOS is an Internet based fashion retailer and EM is a marketing business
providing product placement services to a number of blue chip advertisers.
The Group was admitted to the Alternative Investment Market ('AIM') of the
London Stock Exchange on 3rd October 2001.
Key Points:
• The Group's trading subsidiaries have been profitable since May 2002.
• Losses have halved to £0.3m for the 6 months to June whilst sales
increased 50% to £1.17m.
• The growth is attributable to ASOS.com, the Internet based, fashion
retailer. ASOS.com year on year sales grew 90% in the six months to June to
£0.9m representing 75% of Group turnover.
• Gross margin for ASOS.com has improved significantly from 39% in 2001 to
47% for the 6 months ending June 2002.
Trading Up-date:
• Group sales for the third quarter (July-September) have exceeded
management expectations with a projected 230% jump year on year to £1.2m.
• ASOS.com has performed particularly well - July sales were £282k, a
like-for-like increase of 285%, August sales were £335k, a like-for-like
increase of 350% and September sales are estimated at c£420k, a
like-for-like increase of 475%
• We remain up beat about the Group's prospects for the 4th Quarter.
Chief Executive's Report
ASOS continues to go from strength to strength and importantly, turned
profitable (EBITDA) in May 2002, five months ahead of expectation. The ASOS
brand is now a major force in on-line fashion retailing in the UK and we expect
it to make a significant contribution to Group profits in the future.
Entertainment Marketing has suffered at the hands of the advertising recession
with Jan to June revenues slightly down. With little sign of recovery, I would
expect this trend to continue for the remainder of the year.
Major Developments
Marketing
We have been testing direct response adverting for ASOS since April in titles
such as Heat, Now and More. The return on investment has been encouraging and a
significant up-lift in sales has been achieved. A comprehensive plan is in place
for the remainder of the year and a positive impact on sales is anticipated.
Increased Buying Resource
The buying team for ASOS was strengthened by the addition of a specific Gifts
and Gadgets buyer in May (from the on-line gadget shop - Firebox) and a Menswear
buyer (formally at Next Plc) in August. Gifts and Gadgets already contributes
significantly towards ASOS profit and the increased offering in Menswear will
broaden our target market and increase the sales potential still further.
Television Shopping Trial
Our television shopping trial for ASOS commences in October. Two fifteen-minute
programmes will be transmitted on the Flextech owned channels 'Trouble' and 'UK
Living'. The programmes, entitled 'Get the Look' will promote key lines to a
television audience, with viewers phoning a free phone number to place orders.
Depending on how the TV trial performs, the board are considering extending the
ASOS offering into the television-shopping arena in 2003. Research amongst our
core customers indicates considerable interest and revenue potential.
In-House Technical Resource
The decision was taken in August to bring the ASOS technical resource in-house.
This has dramatically increased the turn-around time of key technical
developments.
Logistics
The rapid growth of the ASOS business has forced us to reconsider our current
logistical set-up. We are looking at much larger premises in the Chesham area,
with the move planned for Quarter 1 2003.
Unaudited Consolidated Profit and Loss Account for
The six months ended 30th June 2002
Unaudited Unaudited Audited Results
6 Months 6 Months for the year ended
To 30th June 2002 to 30th June 2001 31st December 2001
£'000 £'000 £'000
Turnover 1,175 787 1,702
Cost of Sales (475) (299) (705)
Gross Profit 700 488 997
Administrative Expenses (826) (998) (1,847)
Amortisation of Goodwill (185) (113) (264)
Profit / (Loss) before taxation (311) (623) (1,114)
Taxation - - -
Profit / (Loss) after taxation (311) (623) (1,114)
Unaudited Consolidated Balance Sheet at 30th June 2002
Unaudited Unaudited Audited Results
6 Months 6 Months for the year ended
To 30th June 2002 to 30th June 2001 31st December 2001
£'000 £'000 £'000
Fixed Assets
Intangible Assets 3,178 2,106 3,362
Tangible Assets 73 121 99
3,251 2,227 3,461
Current Assets
Stock 178 177 166
Debtors 304 227 246
Cash at bank and in hand - - 116
482 404 528
Creditors: amounts falling
due within one year (507) (439) (451)
Loan Stock - (2,301) -
Net Assets / (liabilities) 3,226 (109) 3,538
Capital and Reserves
Called up share capital 2,157 1,000 2,157
Share premium account 2,982 - 2,982
Profit and loss account (1,913) (1,109) (1,601)
Shareholders funds 3,226 (109) 3,538
Notes to the Accounts
1. The results for the six months ended 30th June 2002 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 2001.
2. The interim accounts for the six months ended 30th June 2002 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 2001 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. The Directors are not declaring a dividend for the six months ended 30th June
2002.
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