REG - ASOS PLC - Final Results <Origin Href="QuoteRef">ASOS.L</Origin> - Part 2

AsosAnnouncement

29/10/2014 13:32

- Part 2: For the preceding part double click  ID:nRSU8150Ua 

does not contain any statement under section 498 of the
Companies Act 2006. 
 
Going concern 
 
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. 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. 
 
Changes to accounting standards 
 
There have been no changes to accounting standards during the year which have
had or are expected to have any significant impact on the Group. 
 
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. The
Chief Operating Decision Maker has been determined to be the Executive Board
and has determined that the primary segmental reporting format of the Group 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. 
 
                          Year to 31 August 2014  
                          UK                      US        EU         RoW        Total      
                          £'000                   £'000     £'000      £'000      £'000      
 Retail sales             372,241                 92,311    256,385    234,358    955,295    
 Delivery receipts        7,412                   1,773     3,162      3,604      15,951     
 Third party revenues     4,224                   -         -          -          4,224      
 Internal revenues        111                     -         -          7,654      7,765      
 Total segment revenue    383,988                 94,084    259,547    245,616    983,235    
 Eliminations             (111)                   -         -          (7,654)    (7,765)    
 Total revenue            383,877                 94,084    259,547    237,962    975,470    
 Cost of sales            (207,853)               (40,137)  (126,460)  (116,013)  (490,463)  
 Gross profit             176,024                 53,947    133,087    121,949    485,007    
 Distribution expenses    (39,618)                (28,804)  (37,062)   (41,819)   (147,303)  
 Segment result           136,406                 25,143    96,025     80,130     337,704    
 Administrative expenses                                                          (294,108)  
 Net other income                                                                 3,050      
 Operating profit                                                                 46,646     
 Finance income                                                                   312        
 Finance expense                                                                  (57)       
 Profit before tax                                                                46,901     
                                                                                             
 
 
Internal revenues relate largely to sale of stock by ASOS.com to ASOS
(Shanghai) Commerce Co. Limited. 
 
                          Year to 31 August 2013  
                          UK                      US        EU        RoW        Total      
                          £'000                   £'000     £'000     £'000      £'000      
 Retail sales             276,027                 77,678    177,708   222,394    753,807    
 Delivery receipts        5,314                   1,456     2,212     3,028      12,010     
 Third party revenues     3,579                   -         -         -          3,579      
 Total revenue            284,920                 79,134    179,920   225,422    769,396    
 Cost of sales            (148,685)               (32,687)  (88,865)  (100,579)  (370,816)  
 Gross profit             136,235                 46,447    91,055    124,843    398,580    
 Distribution expenses    (26,140)                (27,804)  (27,046)  (34,182)   (115,172)  
 Segment result           110,095                 18,643    64,009    90,661     283,408    
 Administrative expenses                                                         (228,953)  
 Operating profit                                                                54,455     
 Finance income                                                                  283        
 Finance expense                                                                 (68)       
 Profit before tax                                                               54,670     
 
 
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 Chief Operating Decision Maker 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.   Net other income 
 
The net income recognised as a result of the fire in our main distribution hub
in June 2014 is composed as follows: 
 
                                         Year to 31 August 2014  Year to 31 August 2013  
                                         £'000                   £'000                   
                                                                                         
 Stock loss and other incremental costs  (8,486)                 -                       
 Insurance reimbursements                11,536                  -                       
 Total                                   3,050                   -                       
 
 
The above includes insurance reimbursements related to stock loss and other
incremental costs plus a portion of business interruption losses. Negotiation
of the remainder of the Group's business interruption loss claim is ongoing. 
 
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 year. Own shares held by the Employee Benefit Trust
and Capita Trust are eliminated from the weighted average number of ordinary
shares. 
 
Diluted 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, adjusted for the effects of potentially
dilutive share options. 
 
                                                                  Year to 31 August 2014  Year to 31 August 2013  
                                                                  No. of shares           No. of shares           
 Weighted average share capital                                                                                   
 Weighted average shares in issue for basic earnings per share    82,845,587              81,751,253              
 Weighted average effect of dilutive options                      279,864                 1,374,566               
 Weighted average shares in issue for diluted earnings per share  83,125,451              83,125,819              
 
 
                                                           Year to 31 August 2014  Year to 31 August 2013  
                                                           £'000                   £'000                   
 Earnings                                                                                                  
 Underlying earnings attributable to owners of the parent  36,950                  40,928                  
                                                                                                           
                                                           Year to 31 August 2014  Year to 31 August 2013  
                                                           Pence                   Pence                   
 Earnings per share                                                                                        
 Basic earnings per share                                  44.6                    50.1                    
 Diluted earnings per share                                44.5                    49.2                    
 
 
5.   Reconciliation of cash and cash equivalents 
 
                                                        Year to 31 August 2014  Year to 31 August 2013  
                                                        £'000                   £'000                   
                                                                                                        
 Net movement in cash and cash equivalents              3,344                   43,255                  
 Opening cash and cash equivalents                      71,139                  27,884                  
 Effect of exchange rates on cash and cash equivalents  (143)                   -                       
 Closing cash and cash equivalents                      74,340                  71,139                  
 
 
The Group has a £20m revolving loan credit facility which includes an
ancillary £10m guaranteed overdraft facility and which is available until July
2015. 
 
This information is provided by RNS
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