Oct 16, 2019
Asos to bolster management after annual profits fall by two-thirds
Online retailer Asos has failed to offer any guidance on sales or profitability for the current financial year after what it described as a "Disappointing" set of results featuring a near-70 per cent drop in profits. The company, whose shares trade on London's junior market, confirmed that capital spending would be around £150m in the year to April 2020, down from around £221m in the past year. These additions come on top of recent changes: Matthew Dunn joined as finance director from Britvic in April, filling a post that had been vacant for more than a year, while last week the company appointed new non-executive directors including Ocado executive Luke Jensen and human resources specialist Karen Geary, who previously worked at Sage and Micro Focus. According to consensus forecasts compiled by Bloomberg, analysts are expecting operating margin to recover to 2 per cent in the current year and 2.5 per cent the year after. Full-year results for the year to August 31 were broadly in line with the outlook given in July, with sales growing 13 per cent to £2.73bn and pre-tax profit falling to £33.1m from £102m the year before amid heavy investment and price discounting.
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