Asos mentioned it might transfer to the principle market of the London Inventory Change after 20 years on Intention, as the web garments retailer reported gross sales progress regardless of provide chain challenges.
The vendor of celebration garments mentioned demand had been “unstable” within the 4 months to December 31 because of Covid however gross sales grew by 5 per cent in keeping with steering.
Asos, which listed on the Different Funding Market in 2001 and has been considered one of AIM’s largest firms, mentioned it deliberate to maneuver to the principle market by the tip of February 2022, because it seeks to draw extra buyers.
Mat Dunn, chief working officer, mentioned: “The time is now proper to maneuver to the principle market as we concentrate on delivering our medium-term steering and longer-term progress ambitions.”
Former chief govt Nick Beighton left the corporate in October, when it issued a revenue warning, leaving Dunn to deal with each day operating of the enterprise. Asos’s share value was up by 8 per cent in early buying and selling.
Regardless of gross sales progress over Christmas, Asos mentioned gross margins fell by 400 foundation factors to 43 per cent, because it cleared slow-moving inventory, confronted elevated freight prices and resorted to air freight to deal with provide constraints.
The Topshop manufacturers, which Asos acquired from Arcadia in February 2021, carried out nicely, posting 200 per cent year-on-year progress.
Dunn mentioned that Asos had had a “strong” begin to the yr in keeping with steering, regardless of difficult market situations.
Asos additionally introduced the appointment to its board of Patrick Kennedy, the chair of Financial institution of Eire and former Paddy Energy chief govt.
Sherri Malek, an analyst at RBC Capital Markets, mentioned the transfer to the principle market was “one other constructive step for the share value”.