ASOS PLC (LON:ASC), AIM’s largest company, appears to be firing on all cylinders.
Delivering better than expected full-year results, the online clothes retailer said its growing international business had benefited from the weak pound.
Underlying pre-tax profits were £63.7mln – around £1.7mln ahead of consensus forecasts and up 37% on the year earlier.
“ASOS is clearly delivering significant momentum,” said John Stevenson of City broker Peel Hunt, who repeated his ‘buy’ recommendation on the stock.
Revenues rose 26% to £1.44bn in the 12 months ended August and importantly margins improved.
Looking ahead, ASOS said it expected to deliver top line growth in the order of 20-25%, with margins remaining stable.
The company plans to accelerate capex to support its growth plans to £120-£140mln.
"I'm pleased with progress in the business,” said chief executive Nick Beighton.
“The strength of these results reflects our unwavering focus on delivering great customer experience, supported by rigorous execution of our investments.
“We continue to target our growth opportunities, so we're accelerating investment in both logistics and technology.
“The pace at ASOS is continuing in the new financial year, which we are looking forward to with confidence."
The shares, up 19% in the last three months, succumbed to a little profit-taking as they fell 3% in early deals.