ASOS PLC ASC Final Results

  ASOS PLC (ASC) - Final Results

RNS Number : 4781P
ASOS PLC
25 October 2012




       
           

25 October 2012

                                   ASOS plc

                         Global Online Fashion Store

             Final Results for the 5 months ended 31 August 2012

                                      

Summary results table

£'000s                                     5 months to    5 months to Change

                                        31 August 2012 31 August 2011

                                             (Audited)     (Unaudited

                                                           pro forma)
Group revenues^1                               238,023        180,044    32%
Retail sales                                   231,234        174,837    32%
 UK retail sales                               81,658         72,278    13%
 International retail sales                   149,576        102,559    46%
Gross profit                                   120,131         89,389    34%
 Retail gross margin                            49.0%          48.1%  90bps
 Gross margin                                   50.5%          49.6%  90bps
Profit before tax and exceptional items         13,245          9,302    42%
Profit before tax                               13,245          3,180   317%
Diluted underlying earnings per share^2           11.9            8.5    40%
Diluted earnings per share^3                      11.9            2.9   310%
Net funds^4                                     27,884          4,183   567%

^1Includes retail sales, delivery receipts and third party revenues

^2Underlying earnings per share has been calculated using profit after tax but
before exceptional items

^3Earnings per share has been calculated using profit after tax including
exceptional items of £nil (2011: £6.1m)

^4Cash and cash equivalents less bank borrowings



Highlights:

· Retail sales up 32% (UK retail sales up 13%, International retail sales
up 46%)

· Retail margin up by 90bps and gross margin up by 90bps

· International retail sales accounted for 65% of total retail sales
(2011: 59%)

· Profit before tax and exceptional items up 42% to £13.2m

· Net funds of £27.9m

· 5 million active customers^5 at 31 August 2012 (+36% year on year)



Nick Robertson, CEO, commented:



"Following our  change of  year end  I  am pleased  to report  another  strong 
performance for ASOS  for the five  months ended 31  August 2012, with  retail 
sales up 32% to £231m  and profit before tax and  exceptional items up 42%  to 
£13.2m.



During the period we improved our product offer in terms of range, quality and
price, invested in our customer  proposition, made progress in developing  the 
ASOS platform and continued  to drive efficiencies from  the business to  fuel 
our future growth. At the same time we have reached the milestone of 5 million
active customers worldwide.



We've also made a  number of high calibre  appointments recently, including  a 
new Chairman,  Executive  Director:  Product and  Trading,  Chief  Information 
Officer, Supply Chain  Director and Marketing  Director. Additionally we  have 
secured territory managers for the USA, France and Germany. These appointments
will underpin the continued  development of the business,  both in the UK  and 
internationally.

We remain positive in our  outlook for 2012/13 as  we continue our journey  to 
becoming the  number one  online  fashion destination  for  twenty-somethings, 
globally. Our International roll out continues and our 1:5:5 ambitions for the
Group are unchanged."



Unaudited Pro Forma Results for the 12 months ended 31 August 2012

Unaudited pro forma results for the 12  months ended 31 August 2012 have  been 
issued as a separate additional release today.

^5Defined as having shopped in the last 12 months

Investor and Analyst Meeting

There will be a  meeting for investors  and analysts that  will take place  at 
10.15am today,  25 October  2012,  at the  Museum  of London  Docklands,  No.1 
Warehouse, West India Quay, London, E14 4AL. A live webcast will be  available 
at www.asosplc.com



For further information:



ASOS plc
Nick Robertson, Chief Executive                Tel: 020 7756 1017
Nick Beighton, Finance Director
Greg Feehely, Head of Investor Relations
Website: www.asos.com
College Hill
Matthew Smallwood / Justine Warren / Jamie Ramsay Tel: 020 7457 2020
JPMorgan Cazenove
Luke Bordewich / Gina Gibson                        Tel: 020 7742 4000
Numis Securities
Alex Ham                                           Tel:020 7260 1000





Background note

ASOS is  a global  online fashion  and beauty  retailer offering  over  60,000 
branded and own  label product  lines across  womenswear, menswear,  footwear, 
accessories, jewellery and beauty with  approximately 1,500 new product  lines 
being introduced each week.



Aimed at  fashion  forward  twenty-somethings  globally,  ASOS  attracts  18.8 
million unique visitors a  month (Q4 2011  11.1 million) and  as at 31  August 
2012 the Group had 9.2 million registered users (31 August 2011: 6.4  million) 
and 5.0  million active  customers* (31  August 2011:  3.7 million)  from  160 
countries.

*Defined as having shopped in the last 12 months



www.asos.com

www.us.asos.com

www.asos.de

www.asos.fr

www.asos.com/au

www.asos.it

www.asos.es

m.asos.com

marketplace.asos.com

fashionfinder.asos.com







                           ASOS plc ("the Company")

                         Global Online Fashion Store

             Final Results for the 5 months ended 31 August 2012

Business Review



The Group  has performed  strongly in  the  period, with  revenues up  32%  to 
£238.0m (2011: £180.0m) and profit before tax and exceptional items up 42%  on 
the comparative  period at  £13.2m  (2011: £9.3m).  Profit before  tax,  which 
included one-off costs relating to the warehouse transition in the comparative
period, increased £10.0m to £13.2m (2011: £3.2m).

Total retail sales  grew 32%  to £231.2m (2011:  £174.8m). The  key driver  of 
retail sales  growth continues  to  be our  International business  (up  46%), 
although  UK  growth  was  also  encouraging  in  the  period  (up  13%).  The 
International portion of our retail sales mix has continued to increase during
the period and accounted  for 65% of total  retail sales (2011: 59%).  Despite 
our investment  in pricing,  retail  gross margin  improved  by 90bps  on  the 
comparative period to 49.0%  (2011: 48.1%) and our  overall gross margin  also 
improved by 90bps to 50.5% (2011: 49.6%).

Our Fashion



We remain committed  to establishing  ASOS as  the number  one online  fashion 
destination for twenty-somethings, globally. We have continued to refine  our 
product range and our pricing architecture to ensure it is clearly focused  on 
the fashion minded twenty-something. ASOS  is increasingly diligent in  areas 
such as sourcing and markdown management as well as continually augmenting our
retail disciplines, which  includes the commencement  of a rationalisation  of 
our supplier base, to deliver gross margin efficiency that subsequently can be
reinvested in  customer proposition  and /  or pricing,  as appropriate.  Our 
strategy remains that our product collections offer greater value to the  ASOS 
customer relative  to  the  marketplace,  whilst  refusing  to  compromise  on 
fashionability or product quality.



The sale of third  party brands remains  very important both  to ASOS and  our 
customers and we have continued to  refine our third party brand offer  during 
the period to ensure that it remains relevant for twenty-somethings. Over  the 
past 5 months we have added  new Womenswear brands including Little  Mistress, 
Lazy Oaf, Adidas and in Menswear Esprit, Benetton and Adidas.



The 'ASOS' own-label  brand increasingly  provides us with  a unique  offering 
that is  sought  after both  in  the UK  and  even more  so  internationally. 
Following our substantial investment in  'ASOS' own label price points,  sales 
of the 'ASOS' own-label brands accounted  for 49.9% of total sales during  the 
period (2011: 51.3%), representing a  small decline on the comparative  period 
as a percentage of the total sales mix. However, on a 12 month pro forma basis
the mix of 'ASOS' own label has  increased marginally from 51.1% of the  total 
to 51.5%.



Menswear continued to grow particularly strongly during the period  accounting 
for 24% of total sales (2011: 13%) and as a result is helping to diversify the
Group's revenue streams. Womenswear remains a more competitive market,  which 
demands that  ASOS is  at the  top  of its  game from  a fashion,  buying  and 
merchandising and marketing perspective. Historically  a key strength of  ASOS 
Womenswear has been in going-out wear,  particularly in dresses. We have  been 
working hard to augment this offer with more separates and casualwear.  During 
April 2012,  we completed  the  process of  restructuring and  refocusing  our 
pricing architecture in both Womenswear and Menswear and will keep this  under 
constant review - our global customer base will continue to benefit from  this 
through the course of the current year.



Management



We have strengthened our  management capabilities across  all of our  business 
verticals to  ensure that  the executive  team has  the diversity  of  skills, 
mind-sets and capabilities which the business  needs to thrive and to  support 
our rate of  growth as  we maintain  our journey  to becoming  the number  one 
online fashion destination for twenty-somethings, globally.

On 1 October 2012, we were delighted to announce that Brian McBride will  join 
ASOS as Chairman with effect from

1 November 2012. Brian has a long and successful background in technology  and 
retailing, including almost six years as Managing Director of Amazon in the UK
and prior to that he  held senior positions at  IBM, Dell and T-Mobile.  Brian 
has a wealth of relevant experience, not just in e-commerce and technology but
in fast growth International businesses.

On 10 October 2012, we announced that  Kate Bostock will be joining the  Group 
and Board in January  2013 as Executive Director,  Product and Trading.  Kate 
was most recently  Executive Director,  General Merchandise and  a main  Board 
Director of Marks and Spencer plc  and previously held senior roles at  George 
at ASDA  and Next  plc. Kate  brings  extensive experience  from some  of  the 
biggest  names  in  retailing.  Her  knowledge  of  the  clothing   industry, 
particularly around product,  sourcing, quality  control, and  supply base  is 
second to none.

In addition  to the  above, ASOS  has continued  to strengthen  its  Executive 
Management  Board  with  a  number  of  recent  appointments  including  Chief 
Information  Officer,  Supply  Chain  Director  and  Marketing  Director.  As 
previously disclosed we  have also  continued to expand  our small  in-country 
management teams. We have appointed further territory managers for three  more 
offices outside of the UK, in New York, Berlin and Lille which will complement
our existing team in Sydney,  as we seek to  amplify our marketing efforts  in 
the countries where we have websites.

Over the last  five months  headcount has  increased by  84 people,  recruited 
principally in our Retail, International, Customer Care and IT departments.



Operations



Delivery and Returns

Delivery and returns solutions are  a cornerstone of our international  growth 
strategy and  customer proposition.  We continue  to deliver  improvements  in 
reduced delivery times  (including a  48 hour Express  Service to  Australia), 
increased tracked parcels and mobile notifications. All UK deliveries are  now 
tracked and c.65% of International deliveries are tracked.



Warehousing

The performance  of  the  Barnsley  warehouse  has  continued  to  exceed  our 
expectations despite limited changes to its operating model. Labour costs  per 
unit improved by  15% over the  period. Additionally we  have been given  HMRC 
approval to operate  a bonded  (customs) warehouse  and are  currently in  the 
process of implementation with the aim of going live at the beginning of 2013.
During the period we received a retrospective reclaim for duty in relation  to 
inward processing relief of  £1.1m and we will  continue to reclaim until  the 
bonded warehouse has been implemented.  Customs warehousing will provide  ASOS 
not only with a cash flow benefit but also improved shipping both inbound  and 
to our customers.

Business Transformation

As a business  we have  invested in  a team to  solely work  on reviewing  and 
reengineering  our   processes  from   design  to   delivery.  This   Business 
Transformation Programme is dedicated to improving cost, speed, visibility and
efficiency of  our critical  path ensuring  we are  the fore-runners  of  fast 
fashion and continue to  offer the most desired  selection of products to  our 
customers. So far the  Programme, with the  implementation of improvements  to 
internal processes and streamlining the way  we work across the business,  has 
shaved off nearly 2 weeks within our critical path.

Quality Improvement

We are constantly  looking at ways  to improve  the quality of  our own  brand 
products. We have increased the volume  of garments which are quality  control 
checked at Barnsley from 15% to 65% with all own-label products being  checked 
by the end  of the  year. In  2013, we  will be  introducing quality  control 
checks at source to further improve  the speed of products being available  to 
purchase on the site.

Technology re-platforming

We are continuing the process  of technology re-platforming and remain  intent 
on driving our  technology to become  device agnostic, so  that customers  can 
browse from their laptop,  desktop, mobile, iPad or  Android device on a  24/7 
basis, wherever they are.  Work continues to enable  the ASOS platform,  both 
front and back  end, to handle  all language character  sets rather than  just 
western. Progress continues in building the infrastructure, on the previously
indicated timeframe  - as  such we  anticipate significantly  enhanced  global 
capability by beginning of calendar 2014.



We have made  significant steps to  evolve our  platform from a  shop into  an 
engaging experience that permeates our  customers' fashion lives. Mobile is  a 
big part of  that as the  number of  visitors from devices  continues to  grow 
rapidly. Our  customer insight  programme  helped us  to understand  that  our 
customers can be both  delighted and challenged by  our breadth of choice.  To 
address this we are increasingly providing ways to edit the choice in relevant
ways for our  customer; we  have launched new  apps 'Fashion  Up' and  'Daily 
Edit' which  focus  much  more  on inspiring,  engaging  content  rather  than 
presenting a large product catalogue which  can be cumbersome to negotiate  on 
the move. These both link seamlessly to our mobile shop. We're also  launching 
Live Style Advice where our stylists  help our customers find items and  build 
brand engagement.

We have continued to  evolve our Marketplace and  Fashion Finder platforms  in 
preparation for greater convergence with  the core ASOS platform. For  example 
both platforms now  leverage the  Facebook Open  Graph to  provide a  simpler, 
familiar signup process and enable  greater syndication of content,  including 
the mobile Daily Edit.

Trading operations



The Group has achieved another strong performance during the five months to 31
August  2012,  with   sales  and   profit  growth   across  all   territories. 
International sales growth continues to drive performance and now accounts for
65% of total retail sales compared to 59% in the comparative period.



Revenue

5 months to 31 August 2012         International
(Unaudited)
£'000s                   UK    USA     EU    RoW   Total Group Total
Retail sales         81,658 22,036 50,855 76,685 149,576     231,234
Growth                  13%    72%    24%    57%     46%         32%
Delivery receipts     3,035    512    719    904   2,135       5,170
Growth                 (6%)    74%    27%    76%     55%         12%
Third party revenues  1,617      -      1      1       2       1,619
Growth                 165%      -      -      -       -        165%
Group revenues       86,310 22,548 51,575 77,590 151,713     238,023
Growth                  13%    72%    24%    57%     46%         32%



Total Group revenue  increased 32%, with  total retail sales  up 32% on  prior 
period, driven by  46% growth  in our International  retail sales.  This is  a 
strong performance given the continued challenging economic environment facing
all of our customers.



The USA was the fastest growing segment within retail sales up 72%, driven  by 
further localising of the trading calendar and content, investment in  digital 
marketing and social media and continuing to develop the service  proposition. 
Rest of  World sales  continue to  perform strongly,  up 57%,  with  continued 
strong performances from Australia (where  we have maintained our first  place 
Comscore position), Russia, Singapore and China. In the EU segment,  countries 
with specific websites have outperformed as we have been able to present  them 
with a more tailored offer. Based on Comscore data at August 2012, in respect
of unique visitors  within the  15-34 year old  demographic, we  had risen  to 
fifth in Germany (March  2012: 14th), sixth in  France (March 2012: 12th)  and 
fifth in Italy (March 2012: eighth).



The UK  performance  was  encouraging  and appears  to  have  been  positively 
impacted by our investment in pricing  architecture. Retail sales grew in  the 
UK by 13% in the period and according to Comscore, we continue to remain first
in the UK for unique visitors in the 15-34 age range.



Delivery receipts increased by 12% on the comparative period, as we  continued 
to invest in our  global free ship delivery  proposition. In the UK,  delivery 
receipts were  down 6%  on  the comparative  period  as customers  chose  free 
delivery which has reduced by 2 days to 4 days.

Third party  revenues, which  mainly comprise  advertising revenues  from  the 
website and the ASOS  magazine, increased by 165%  on the comparative  period. 
This was  due  to increased  integrated  advertising campaigns  using  several 
platforms and an additional magazine in the current period.













Trading Key Performance Indicators



At  31  August  2012,  ASOS  reached  the  milestone  of  having  5.0m  active 
customers^3  with   more  International   than  UK   active  customers.   This 
demonstrates the success of  our international expansion,  but there is  still 
significant opportunity  within the  global  twenty-something market.  The  6% 
decline in average basket value was mainly driven by a 5% reduction in average
selling price as a direct consequence  of our investment in restructuring  and 
refocusing our  pricing  architecture.  Average units  per  basket  showed  an 
overall decline compared to the comparative period of 1%, however,  pleasingly 
there were increases in markets where  the global free shipping offer is  more 
established.



5 months to 31 August 2012                    International
(Unaudited)



KPIs                                UK    USA     EU    RoW  Total Group Total
Average basket value^1          £62.96 £55.38 £58.44 £56.60 £57.12      £59.64
Growth                            (2%)   (5%)   (8%)  (10%)   (9%)        (6%)
Average units per basket          2.45   2.37   2.48   2.46   2.46        2.45
Growth                              3%     2%   (4%)   (7%)   (5%)        (1%)


Average selling price per
unit^1                          £25.74 £23.39 £23.53 £22.96 £23.26      £24.33
Growth                            (5%)   (7%)   (4%)   (3%)   (4%)        (5%)


Number of orders ('000)          2,614    586  1,368  1,485  3,439       6,053
Growth                             15%    97%    49%    79%    68%         40%
Unique visitors ('000)^2                                                18,800
Growth                                                                     69%
Total visits ('000)^2           12,864  5,947 12,867 13,568 32,382      45,246
Growth                              5%    52%    34%    47%    42%         29%
Active customers ('000)^3        2,254    573  1,217    952  2,742       4,996
Growth                              6%    89%    57%   105%    78%         36%

^1Including VAT

^2During August

^3As at 31 August, defined as having shopped with ASOS during the last 12
months



Gross profit



The Group generated gross profit of £120.1m during the period (2011: £89.4m),
up 34% on the comparative period.



5 months to 31 August 2012
(Unaudited)                                 International

£'000s                           UK     USA       EU    RoW  Total Group Total
Gross profit                 40,535  12,969   24,868 41,759 79,596     120,131
Growth                          13%     71%      19%    66%    48%         34%
Retail gross margin           43.9%   56.5%    47.5%  53.3%  51.8%       49.0%
Change                      (20bps) (50bps) (220bps) 270bps  80bps       90bps
Gross margin                  47.0%   57.5%    48.2%  53.8%  52.5%       50.5%
Change                        10bps (40bps) (220bps) 270bps  90bps       90bps



The Group  retail  gross  margin  increased  by  90bps,  despite  our  pricing 
investment, to 49.0%  (2011: 48.1%).  In the  Rest of  World segment,  margins 
improved significantly due to a combination of mix changes, improved  markdown 
management (Rest of World segment consumes a greater portion of markdown stock
due to  being counter  seasonal) and  the benefits  of the  receipt of  inward 
processing relief. We continue to improve our retail disciplines and this  has 
led to  improved  buying and  markdown  management. Group  gross  margin  also 
improved by 90bps to 50.5% (2011: 49.6%).











Investment in our operating resources



The Group increased its investment  in its operating resources and  capability 
by 34% to £106.8m,  excluding exceptional items.  Total operating costs  ratio 
improved by 170bps excluding investment in our customer delivery proposition.



                                      5 months to
                                                            5 months to
                                   31 August 2012
                                                         31 August 2011
£'000s                                  (Audited) (Unaudited pro forma) Change
Distribution costs                       (35,906)              (23,186)    55%
Payroll and staff costs                  (21,035)              (17,671)    19%
Warehousing                              (14,935)              (13,665)     9%
Marketing                                 (9,038)               (6,819)    33%
Production                                (1,720)               (1,288)    34%
Technology costs                          (4,020)               (3,939)     2%
Other operating costs                    (15,082)              (10,388)    45%
Depreciation and amortisation             (5,053)               (2,914)    73%
Operating costs excluding
exceptional items                       (106,789)              (79,870)    34%
Operating costs excluding
distribution costs and exceptional
items                                    (70,883)              (56,684)    25%
% of sales excluding  distribution 
costs                                       29.8%                 31.5% 170bps



Delivery  and  returns  solutions  continue   to  be  a  cornerstone  of   our 
international growth  strategy  and  customer  proposition.  As  a  result  we 
continue to invest in  our delivery proposition and  in particular our  global 
free shipping commitment. Distribution costs  have, as a result, increased  by 
55% on the comparative period due to a combination of increased order  numbers 
but also  increased delivery  costs associated  with reduced  delivery  times, 
increased tracked parcels and  mobile notifications. It  should be noted  that 
all UK deliveries are now tracked.



Payroll and staff costs  have increased by  19%, as we  continue to invest  in 
headcount in our key areas of  IT, Retail and International whilst  benefiting 
from economies of scale and delivering operating cost leverage.



The performance  of  the  Barnsley  warehouse  has  continued  to  exceed  our 
expectations despite limited changes to  the labour intensive operating  model 
of our previous  warehouse. Labour  costs per unit  improved by  15% over  the 
period and total warehouse  costs were up only  9% on the comparative  period, 
despite a 40% increase in the number of orders.

The increase in other operating costs on the comparative period was driven  by 
increased credit card handling fees resulting from the number of  transactions 
processed and  increased  property costs  from  additional head  office  space 
acquired.



Group Profit



The Group generated  profit before  tax and exceptional  items up  42% on  the 
comparative period at £13.2m (2011:£9.3m).



                                      5 months to           5 months to

                                   31 August 2012        31 August 2011

£'000s                                  (Audited) (Unaudited pro forma) Change
Revenue                                  238,023              180,044    32%
Cost of sales                           (117,892)              (90,655)
Gross profit                             120,131               89,389    34%
Distribution costs excluding
exceptional items                        (35,906)              (23,186)
Administrative expenses excluding
exceptional items                        (70,883)              (56,684)
Operating      profit       before                                         40%
exceptional items                         13,342                9,519
Net finance costs                            (97)                 (217)
Profit before tax and  exceptional        13,245                9,302    42%
items
Exceptional items                              -               (6,122)
Profit before tax                         13,245                3,180   317%
Income tax expense                        (3,341)                 (843)
Profit after tax                           9,904                2,337   324%







Exceptional items

The transition to our new warehousing facilities was completed during the year
to 31 March 2012 therefore no  further exceptional items were incurred  during 
the 5 months to 31 August 2012. The cash outflow during the period as a result
of utilisation  of exceptional  property provisions  during the  period to  31 
August 2012 was £0.9m.



The main components of the exceptional  charge to the profit and loss  account 
are as follows:

                                          5 months to           5 months to

                                            31 August             31 August

                                                 2012                  2011

£'000s                                      (Audited) (Unaudited pro forma)
Dual site decollation costs                         -               (4,324)
Pre go-live occupancy and employee costs            -                 (560)
Vacant property costs                               -               (1,238)
Impairment of assets                                -                     -
Total                                               -               (6,122)



Taxation

The effective tax rate (pre exceptional items) for the Group was 25.2%,  90bps 
lower than last year. Including exceptional items the effective tax rate  was 
25.2% (2011: 26.5%). Going forward, we would expect the effective rate of  tax 
pre  exceptional  items  to  be  around  1%  higher  than  the  prevailing  UK 
corporation tax rate.



Earnings per share

Basic underlying earnings  per share^1  increased by  37% to  12.5p per  share 
(2011: 9.1p), and diluted underlying earnings per share^1 increased by 40%  to 
11.9p per share (2011: 8.5p).



Basic earnings per share^2 increased by 303% to 12.5p per share (2011:  3.1p), 
and diluted earnings per share^2 increased  by 310% to 11.9p per share  (2011: 
2.9p).



Dividend

The Board is of  the opinion that shareholder's  interests are best served  by 
continuing to  reinvest the  cash generated  by the  business to  exploit  the 
substantial global growth  opportunities both in  the UK and  Internationally. 
Accordingly, it has decided not  to pay a dividend for  the 5 months ended  31 
August 2012. This policy remains under regular review.



Statement of Financial Position



The Group enjoys a robust financial  position including a strong cash  balance 
and a clean  stock position.  Net assets increased  by £10.8m  to £106.0m  (31 
March 2012:  £95.2m), driven  by the  increase  in profit  after tax  for  the 
period.











Underlying earnings per share has been calculated using profit after tax but
before exceptional items.

^2Earnings per share has been calculated using profit after tax and
exceptional items.



Statement of Cash Flows



The Group's cash balance was  £27.9m at 31 August 2012,  up from £14.2m at  31 
August 2011. Net funds were £27.9m  (31 August 2011: £4.2m). The summary  cash 
flow is detailed below.



                                                       5 months to 5 months to

                                                         31 August   31 August

                                                              2012        2011

                                                         (Audited)  (Unaudited

£'000s                                                              pro forma)
Operating profit                                           13,342      3,397
Exceptional items                                               -      6,122
Operating profit before exceptional items                  13,342      9,519
Depreciation and amortisation                               5,053      2,914
Working capital                                            (1,184)      6,325
Share-based payments charges                                  344        393
Tax paid                                                        -     (2,268)
Cash inflow from  operating profit before  exceptional 
items                                                      17,555     16,883
Operating cash outflow relating to exceptional items         (935)     (9,425)
Cash inflow from operating profit                          16,620      7,458
Capital expenditure                                        (8,017)     (7,943)
Proceeds from issue of ordinary shares                        321        452
Cash  received/(paid)  on  exercise  of  shares   from 
Employee Benefit Trust                                          9       (246)
(Repayment)/drawdown of revolving credit facility          (5,000)     10,000
Net interest paid                                            (364)       (217)
Total cash inflow                                           3,569      9,504



Cash generated from  operating profit  before exceptional  items increased  by 
£0.7m, with EBITDA improvements of £6.0m and a £2.3m reduction in tax payments
being largely offset by a movement in working capital cash flows of £7.5m. The
additional working capital outflow in the current period is due to changes  in 
the stock  intake  profile compared  to  the comparative  period,  with  later 
receipt of Spring  Summer season stock  and earlier receipt  of stock for  the 
Autumn Winter season in the 5 months to 31 August 2012.



Our investments are funded by operating cash flows, with additional short term
and medium term facilities  to support working  capital movements and  planned 
capital expenditure. At  31 August  2012, the Group  had in  place an  undrawn 
£20.0m revolving  loan  credit facility  which  includes an  ancillary  £10.0m 
guaranteed overdraft facility and which is available until July 2015.

Fixed asset additions

                            5 months to 5 months to

                              31 August   31 August

                                   2012        2011

                            (Unaudited)  (Unaudited

£'000                                    pro forma)
IT                                5,213       5,757
Office fixtures and fit-out         854         768
Warehouse                           802         605
Total                             6,869       7,130



The majority of  fixed asset  additions were  related to  improvements in  our 
underlying IT infrastructure to ensure capacity for peak trade and  continuing 
our  re-platforming   to  support   ASOS  future   growth  (particularly   the 
requirements that come with extending our International offering). In addition
we have  invested  in  a time  management  system  for the  warehouse  to  aid 
efficiency and  a  human resource  system  to  manage all  aspects  of  people 
management from recruitment to performance management to payroll.





Outlook

We remain  confident  in  our  outlook  for  2012/13  with  our  International 
operations continuing to drive growth,  whilst the UK business performance  is 
encouraging. Our  1:5:5 ambitions  of  achieving £1bn  sales from  five  major 
markets by 2015 are in sight.







Nick Robertson          Nick Beighton

Chief Executive Officer Finance Director





Audited Consolidated Statement of Comprehensive Income

For the 5 months ended 31 August 2012



                                 5 months to       Year to 31 March 2012

                              31 August 2012
                                       Total      Before Exceptional     Total

                                             exceptional       items

                                                   items
                                       £'000       £'000       £'000     £'000
Revenue                             238,023    494,957          -  494,957
Cost of sales                      (117,892)   (242,987)          - (242,987)
Gross profit                        120,131    251,970          -  251,970
Distribution expenses               (35,906)    (65,840)     (2,258)  (68,098)
Administrative expenses             (70,883)   (144,346)     (8,327) (152,673)
Operating profit                     13,342     41,784    (10,585)   31,199
Finance expense                         (97)       (850)          -     (850)
Profit before tax                    13,245     40,934    (10,585)   30,349
Income tax (expense)/credit          (3,341)    (10,685)      2,615   (8,070)
Profit for the period and
total comprehensive income            9,904     30,249     (7,970)   22,279
attributable to owners of the
parent







Earnings per share^1
Basic                           12.5        29.3p
Diluted                         11.9        26.7p
Underlying earnings per share^2
Basic                           12.5 39.8p
Diluted                         11.9 36.3p

















^1 Earnings per share is calculated in accordance with IAS 33 'Earnings per
share' and includes exceptional items

^2 Underlying earnings per share excludes exceptional items





Audited Consolidated Statement of Changes in Equity

For the 5 months ended 31 August 2012



                                                             Employee
                                Called up                      Benefit   Total
                                   share  Share   Retained    Trust
                                  capital  premium earnings^1  reserve  equity
                                    £'000    £'000      £'000    £'000   £'000
Balance as at 1 April 2011          2,661    5,194    67,540  (3,275) 72,120
Shares allotted in the year            38      555         -       -    593
Net purchase of shares by                                               

Employee Benefit Trust                  -        -         -  (1,592) (1,592)
Transfer of shares from
Employee Benefit Trust on
exercise                                -        -    (1,935)   1,935      -
Share based payments charge             -        -       648       -    648
Profit for the year and total
comprehensive income                    -        -    22,279       - 22,279
Deferred tax on share options           -        -   (6,386)       - (6,386)
Current tax on items                                              
taken directly to equity
                                       -        -     7,573       -  7,573
Balance as at 31 March 2012         2,699    5,749    89,719  (2,932) 95,235



Shares allotted in the year                 155   356      -      -     511
Cash received on exercise of shares
from Employee Benefit Trust                   -     -      -      9       9
Transfer of shares from Employee
Benefit Trust on exercise                     -     -   (459)    459       -
Share based payments charge                   -     -    344      -     344
Profit for the period and total
comprehensive income                          -     -  9,904      -   9,904
Deferred tax on share options                 -     - (1,949)      -  (1,949)
Current tax on items taken directly 
to equity
                                             -     -  1,933      -   1,933
Balance as at 31 August 2012              2,854 6,105 99,492 (2,464) 105,987





^

^1Retained earnings includes the share-based payments reserve





Audited Consolidated Statement of Financial Position

As at 31 August 2012



                                                           31 March
                                            31 August 2012
                                                               2012
                                                 £'000    £'000
Non-current assets
Goodwill                                            1,060   1,060
Other intangible assets                            22,176  19,959
Property, plant and equipment                      27,293  27,694
Deferred tax asset                                  8,111   9,876
                                                   58,640  58,589
Current assets
Inventories                                       100,263  80,574
Trade and other receivables                        19,066  19,503
Current tax asset                                     425   2,018
Cash and cash equivalents                          27,884  24,315
                                                  147,638 126,410
Current liabilities
Trade and other payables                         (100,291) (83,829)
Revolving credit facility                               -  (5,000)
Provisions                                              -    (935)
                                                 (100,291) (89,764)
Net current assets                                 47,347  36,646
Net assets                                        105,987  95,235
Equity attributable to owners of the parent
Called up share capital                             2,854   2,699
Share premium                                       6,105   5,749
Employee Benefit Trust reserve                     (2,464)  (2,932)
Retained earnings                                  99,492  89,719
Total equity                                       105,987  95,235





Audited Consolidated Statement of Cash Flows

For the 5 months ended 31 August 2012

                                                          5 months to  Year to

                                                            31 August 31 March
                                                                 2012     2012
                                                                £'000    £'000
Operating profit                                              13,342  31,199
Adjusted for:
Operating exceptional items                                        -  10,585
Depreciation of property, plant and equipment                  2,542   4,937
Amortisation of other intangible assets                        2,511   3,137
Increase in inventories                                      (19,689) (14,480)
Decrease/(increase) in trade and other receivables               437  (9,381)
Increase in trade and other payables                          18,068  19,995
Share-based payments charges                                     344     648
Income taxes received                                              -   1,012
Net cash generated from operating activities before
exceptional items                                             17,555  47,652
Cash outflow relating to exceptional operating items            (935) (10,152)
Net cash generated from operating activities                  16,620  37,500
Investing activities
Payments to acquire other intangible assets                   (5,672) (12,669)
Payments to acquire property, plant and equipment             (2,345)  (8,918)
Net cash outflow from investing activities                    (8,017) (21,587)
Financing activities
Proceeds from issue of ordinary shares                           321     593
Net exercise/(purchase) of shares by Employee Benefit              9  (1,592)
Trust
(Repayment)/drawdown of revolving credit facility             (5,000)   5,000
Finance expense                                                 (364)    (278)
Net cash (used in)/generated from financing activities        (5,034)   3,723
Net increase in cash and cash equivalents                      3,569  19,636
Opening cash and cash equivalents                             24,315   4,679
Closing cash and cash equivalents                             27,884  24,315





Reconciliation of net cash flow to movement in net funds



                                                          5 Months to  Year to

                                                            31 August 31 March
                                                                 2012     2012
                                                                £'000    £'000
Net funds at beginning of the period                           19,315   4,679
Increase in cash and cash equivalents                           3,569  19,636
Decrease/(increase) in revolving credit facility                5,000  (5,000)
liability
Net funds at end of the period                                 27,884  19,315



Notes to the Financial Information



1. Preparation of the audited condensed consolidated financial information



a) Basis of preparation



Whilst  the  information  included  in  this  audited  condensed  consolidated 
financial  information  ("preliminary  announcement")  has  been  prepared  in 
accordance with  the recognition  and  measurement criteria  of  International 
Financial Reporting Standards  ("IFRSs") as  adopted for use  in the  European 
Union and  as issued  by the  International Accounting  Standards Board,  this 
preliminary announcement  does not  itself contain  sufficient information  to 
comply with IFRSs.



The financial information contained  within this preliminary announcement  for 
the five months to 31  August 2012 and year to  31 March 2012 do not  comprise 
statutory financial statements within the meaning of section 434 the Companies
Act 2006. The Annual Report  and Accounts for the year  to 31 March 2012  have 
been filed with the Registrar of Companies and those for the five months to 31
August 2012 will be filed following the Company's annual general meeting.  The 
preliminary announcement  for the  five  months to  31  August 2012  has  been 
prepared on a consistent basis with the financial accounting policies set  out 
in the Accounting Policies section of the ASOS Plc Annual Report and  Accounts 
2012.



The condensed consolidated financial information should be read in conjunction
with the  Group's Annual  Report and  Accounts for  the five  months ended  31 
August 2012, which have been prepared  in accordance with IFRSs as adopted  by 
the European Union. The  auditors' report on  those accounts was  unqualified, 
did not  include  a  reference to  any  matters  to which  the  auditors  drew 
attention by way of emphasis without qualifying the report and did not contain
statements under s498(2) or s498(3) of the Companies Act 2006.



The Group's business activities together with  the factors that are likely  to 
affect its future developments,  performance and position are  set out in  the 
Business Review. The Business Review describes the Group's financial position,
cash flows and borrowing  facilities and also  highlights the principal  risks 
and uncertainties facing  the Group. The  Annual Report and  Accounts for  the 
five months to 31  August 2012 includes the  Group's objectives, policies  and 
processes for managing its capital; its financial risk management  objectives; 
details of its  financial instruments; and  its exposures to  credit risk  and 
liquidity risk.



The directors have reviewed current  performance and forecasts, combined  with 
expenditure  commitments,   including   capital  expenditure.   After   making 
enquiries, the  directors have  a reasonable  expectation that  the Group  has 
adequate financial  resources to  continue its  current operations,  including 
contractual and commercial commitments for the foreseeable future despite  the 
current uncertain economic outlook.  For this reason,  they have continued  to 
adopt the going concern basis in preparing the financial statements.



In preparing  the  preliminary  announcement, the  Directors  have  also  made 
reasonable and prudent judgements and  estimates and prepared the  preliminary 
announcement on  the going  concern basis.  The preliminary  announcement  and 
management report contained herein  give a true and  fair view of the  assets, 
liabilities, financial position and profit and loss of the Group.



b) Accounting policies



The Financial Statements have been prepared in accordance with the  accounting 
policies set out in the 2012 Annual Report and Accounts for the five months to
31 August 2012.



c) Exceptional items



The Group separately identifies and  discloses significant one-off or  unusual 
items which can have a material  impact on absolute profits. These are  termed 
'exceptional  items'  and  are  disclosed  separately  in  the  statement   of 
comprehensive income  in order  to  provide an  understanding of  the  Group's 
underlying financial performance. Exceptional  items are judgemental in  their 
nature and may not  be comparable to similarly  titled measures used by  other 
companies. Further details of exceptional items are included in Note 3 to this
release.







2. Segmental analysis



IFRS 8 'Operating Segments' requires operating segments to be determined based
on the  Group's  internal reporting  to  the Chief  Operating  Decision  Maker 
("CODM"). The  CODM has  been  determined to  be  the Executive  Board.  The 
Executive Board has determined that the primary segmental reporting format  is 
geographical by  customer  location,  based  on  the  Group's  management  and 
internal reporting structure. The Executive Board assesses the performance of
each segment based on  revenue and gross  profit after distribution  expenses, 
which excludes administrative expenses and exceptional items.



                                          5 Months to 31 August 2012
                                       UK      USA       EU      RoW     Total
                                    £'000    £'000    £'000    £'000     £'000

                                        
Retail sales                      81,658  22,036  50,855  76,685  231,234
Delivery receipts                  3,035     512     719     904    5,170
Third party revenues               1,617       -       1       1    1,619
Total revenue                     86,310  22,548  51,575  77,590  238,023
Cost of sales                    (45,775)  (9,579) (26,707) (35,831) (117,892)
Gross profit                      40,535  12,969  24,868  41,759  120,131
Distribution costs                (8,413)  (7,102)  (7,436) (12,955)  (35,906)
Segment result                                                         84,225
Administrative expenses                                               (70,883)
Operating profit                                                       13,342
Finance expense                                                           (97)
Profit before tax                                                      13,245



                                       Year to 31 March 2012

                                                 
                                       UK      USA       EU      RoW     Total
                                    £'000    £'000    £'000    £'000     £'000
Retail sales                     197,859  39,959 106,993 136,751  481,562
Delivery receipts                  7,073     825   1,449   1,430   10,777
Third party revenues               2,555      10      25      28    2,618
Total revenue                    207,487  40,794 108,467 138,209  494,957
Cost of sales                   (108,314) (16,096) (53,953) (64,624) (242,987)
Gross profit                      99,173  24,698  54,514  73,585  251,970
Distribution costs before
exceptional items                (17,890) (11,037) (16,227) (20,686)  (65,840)
Segment result before
exceptional items                 81,283  13,661  38,287  52,899  186,130
Administrative expenses before
exceptional items                                                    (144,346)
Operating profit before
exceptional items                                                      41,784
Exceptional items                                                     (10,585)
Finance expense                                                          (850)
Profit before tax                                                      30,349





Due to  the  nature  of its  activities,  the  Group is  not  reliant  on  any 
individual major customers.



No analysis  of  the assets  and  liabilities  of each  operating  segment  is 
provided to the CODM in the  monthly management accounts therefore no  measure 
of segments assets or liabilities is disclosed in this note.



There are no material non-current assets located outside the UK.





3. Exceptional items



During the year to 31 March 2012, exceptional costs of £10.6m were charged  to 
operating expenses  to reflect  the  direct costs  of  the completion  of  the 
reorganisation of distribution  following the  leasing of  a new  distribution 
centre  to  meet  the   increasing  capacity  needs   of  the  business.   The 
reorganisation was completed during the year to 31 March 2012 therefore  there 
is no exceptional charge for the period to 31 August 2012.



The main components of the exceptional charge are as follows:



                                             5 months to  Year to

                                          31 August 2012 31 March

                                                   £'000     2012

                                                            £'000

                                                                
Dual site decollation costs                            -    5,385
Pre go-live occupancy and employee costs               -      965
Vacant property costs                                  -    1,435
Impairment of assets                                   -    2,800
Total                                                  -   10,585



Included within dual site decollation costs for the year to 31 March 2012 were
delivery costs of £2.3m which were classified within distribution expenses  in 
the statement of  comprehensive income. The  remaining exceptional costs  were 
included within administrative expenses.

4. Earnings per share



Basic earnings per share is calculated by dividing the profit attributable  to 
the owners of the  Parent Company by the  weighted average number of  ordinary 
shares in issue during  the period. Own shares  held by the ASOS.com  Limited 
Employee Benefit  Trust are  eliminated from  the weighted  average number  of 
ordinary shares.



Diluted earnings  per share  amounts  are calculated  by dividing  the  profit 
attributable to  the owners  of the  Parent Company  by the  weighted  average 
number of ordinary shares in issue during the period, adjusted for the effects
of potentially dilutive share options.



                                                  31 August 2012      31 March

                                                                          2012
                                                   No. of shares No. of shares
Weighted average share capital
Weighted average shares in issue for basic
earnings per share                                    79,078,431   75,914,855
Effect of dilutive options                             3,951,661    7,405,148
Weighted average shares in issue for diluted
earnings per share                                    83,030,092   83,320,003



                                                 31 August 2012       31 March

                                                                          2012
                                                          £'000          £'000
Earnings
Underlying earnings attributable to shareholders          9,904        30,249
Exceptional items net of related taxation                     -        (7,970)
Earnings attributable to shareholders                     9,904        22,279
                                                 31 August 2012       31 March

                                                                          2012
                                                          pence          pence
Basic earnings per share
Underlying earnings per share^1                            12.5          39.8
Exceptional items net of taxation                             -         (10.5)
Earnings per share^2                                       12.5          29.3
                                                 31 August 2012 31 March 2012
                                                          Pence          pence
Diluted earnings per share
Underlying earnings per share^1                            11.9          36.3
Exceptional items net of taxation                             -          (9.6)
Earnings per share^2                                       11.9          26.7



^1Underlying earnings per share has been calculated using profit after tax but
before exceptional items.

^2Earnings per share has been calculated using profit after tax and
exceptional items.







4,000,822 shares were included in dilutive options at 31 March 2012 under  the 
Management Incentive Plan.  These shares were  issued on 31  May 2012 and  are 
held by a nominee on behalf of  participants until vesting. Due to the  timing 
of the  issue of  these shares,  during the  five months  to 31  August  2012, 
2,405,723 were included in weighted average shares in issue for basic earnings
per share and 1,595,099 were included in weighted average shares in issue  for 
diluted earnings per share.





5. Reconciliation of net funds



                                                   31 August 2012 31 March

                                                            £'000     2012

                                                                     £'000

                                                                         
Net movement in cash and cash equivalents                   3,569  19,636
Repayment/(drawdown) of revolving credit facility           5,000  (5,000)
Net movement in net funds                                   8,569  14,636
Opening net funds                                          19,315   4,679
Closing net funds                                          27,884  19,315
Closing net funds comprises:
Cash and cash equivalents                                  27,884  24,315
Drawings under revolving credit facility                        -  (5,000)
Net funds                                                  27,884  19,315



The Group  has a  £20.0m  revolving loan  credit  facility which  includes  an 
ancillary £10.0m guaranteed  overdraft facility and  which is available  until 
July 2015.









                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


FR USVNRUNARUAA -0- Oct/25/2012 06:00 GMT