Asos chief executive Nick Robertson is in for a bumper payday, after hitting the targets set by a three year management incentive plan. But having increased the group's value sixfold in that period and with another period of impressive profit growth behind it, the award looks deserved, which meant no sign of the shareholder unrest that has plagued the boards of some other big companies.
Underlying profits climbed 43 per cent to £40.9m, better than analysts had expected reflecting continued progress overseas and efficiencies from its new warehouse. International sales doubled to £284m and now generate 59 per cent of retail sales, up from 43 per cent a year ago. As overseas buyers tend to purchase more of Asos' own label ranges, and in most cases these do not incur VAT, international sales are more profitable, which meant retail gross margin improved by 290 basis points. After launching country specific websites in Italy, Spain and Australia, Asos is now establishing in-country marketing teams in key territories.
UK growth was more subdued, although a 7 per cent sales increase wasn't bad given the growing pressure on Asos' core 20-something customers.
Broker Numis Securities expects underlying pre-tax profit of £53.5m for 2013, giving EPS of 47.9p (2012: 36.3p).
ASOS (ASC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,704p | MARKET VALUE: | £1.31bn | |
| TOUCH: | 1,698-1,704p | 12-MONTH HIGH: | 2,508p | LOW: 1,124p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 58 | |
| NET ASSET VALUE: | 123p* | NET CASH: | £19.3m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 81.0 | 7.30 | 6.90 | nil |
| 2009 | 165 | 14.1 | 13.6 | nil |
| 2010 | 223 | 20.3 | 20.0 | nil |
| 2011 | 340 | 15.7 | 14.6 | nil |
| 2012 | 495 | 30.3 | 29.3 | nil |
| % change | +46 | +93 | +101 | - |
*Includes intangible assets of £21m or 27p a share | ||||
