ASOS doubles profits, again
Article Date: Jun 29 2009
ASOS, helped by the launch of a new designer-labels channel, doubled profits last year
Ascendant AIM online retailer ASOS has doubled annual profits, despite recent data showing that the market’s growth is beginning to slow.
The London-based company increased pre-tax profits 93 per cent to £14.1 million in the year to March on a 104 per cent turnover gain to £165.4 million. Boosting the figures were launches during the year of a discount line, ‘ASOS Outlet’, a children’s line, ‘Little ASOS’ and a new designer labels channel.
International sales, aided by a weaker pound, tripled to £32.2 million. The board spies significant potential for further overseas expansion of the ASOS.com website – which is proving particularly popular in Ireland, Denmark, Sweden, France and the US – and has assigned former finance director Jon Kamaluddin to head this arm.
Chief executive Nick Robertson acknowledges recent data from the Interactive Media in Retail Group that showed the lowest year-on-year increase in clothing sales growth for nine years, but argues other forecast data from Verdict predicts the percentage of clothing that is bought online will double in the next three to four years. As such the company has continued to eschew paying a dividend and will continue to plough its profits back into the business ‘albeit at more conservative levels in the short term’.
Shares in the company, first recommended by Growth Company Investor at 7p in 2004, which hit 417.5p earlier this year, were down 2 per cent this morning at 372.25p. They should regain their upward trajectory again before long.
This story is from Growth Company Investor, the independent voice on fast-growing companies. Subscribe today for the latest AIM recommendations.
