Slowing UK sales growth took the shine off otherwise good figures at online fashion retailer Asos. But, but with its international business going from strength to strength, chief executive Nick Robertson remained unconcerned.
He said that the second quarter 1 per cent sales rise – well short of the double-digit rates the market has come to expect – partly reflected rivals' bringing forward high-street sales from July to June, and that UK growth rates have actually picked up since the period end.
More important, though, is the shift in emphasis from the UK to overseas. Now, 58 per cent of sales are non-UK, a proportion that management thinks will head towards 90 per cent within three years. International sales climbed 150 per cent in the period, boosted by accelerated deliveries to US customers and strong sales in Australia. Mr Robertson says that, as a large proportion of international sales – all of which are shipped from its new Barnsley warehouse – are not subject to UK VAT, they are significantly more profitable, helping underlying profits climb 66 per cent to £11.7m.
Numis Securities expects full-year pre-tax profits of £38.5m and EPS of 35.5p (£28.7m and 25.6p for 2011).
| ASOS (ASC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,470p | MARKET VALUE: | £1.13bn | |
| TOUCH: | 1,467-1,475p | 12-MONTH HIGH: | 2,508p | LOW: 1,208p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 123 | |
| NET ASSET VALUE: | 92p | NET CASH: | £10.4m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 140 | 7.00 | 6.80 | nil |
| 2011 | 217 | 4.49 | 4.20 | nil |
| % change | +55 | -36 | -38 | – |
