Companies: ASC   

Like-for-like sales at online retailer ASOS, which sells clothing and accessories imitating fashion items worn by celebrities, increased 86% in the six months to end-September.

At the company’s AGM chief executive Nick Robertson principally attributed the improvements to the company’s move to new, larger warehousing facilities. Logistical issues arising from its previous arrangement of four separate warehouses had hampered ASOS and in March profit forecasts had to be downgraded after delays in processing stock. July saw said profits reach record levels anyway, coming in over 70% higher at £1.1m.

Allied to the improved logistical arrangement, further investment in the buying team means 200 ‘hot new fashion lines’ appear on the website each week. Furthermore, a new website and back-office system have been introduced to cope with the ‘continued growth’ of online shopping and ASOS’ 675,000 registered users.

Former marketing director Quentin Griffiths has 8.4% of the shares and Fidelity has been slowly increasing its holding and recently upped it to 9.15%. A Company Watch recommendation here in February 2004 at 7p, ASOS shares reached 89.5p in November and now sit at 76.5p. Now that the company’s operations seem to be functioning effectively and with the Christmas bonanza to come there is scope for further advances in the share price.

ASOS	AIM	£194.5m	266.75p	-9.25p
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