40 Independent Auditors' Report to the Members of Asos

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40 Independent Auditors' Report to the Members of Asos ASOSPLC ASOS PLC Annual Report & Accounts 2009 Annual Report & Accounts 2009 Winning the online fashion race ASOS PLC Greater London House Hampstead Road London NW1 7FB ASOS PLC Greater London House Hampsteadwww.asos.com Road London NW1 7FB 16750ASOSPLC_CVRSSpine.indd 1 16750 24/08/09 Proof 7 16750 24/08/09 Proof 7 24/08/2009 14:22 www.asos.com COMPANY INFORMATION DIRECTORS: LAWYERS: Lord W Alli (Chairman) Lawrence Graham LLP N Robertson 4 More London Riverside ASOS is rapidly becoming the J Kamaluddin London SE1 2AU R Bready market leader in the UK online P Williams FINANCIAL ADVISOR, fashion world. N Beighton (appointed 27 April 2009) NOMINATED ADVISOR AND JOINT BROKER: COMPANY SECRETARY: JPMorgan Cazenove Limited ASOS continues to generate J Kamaluddin 20 Moorgate (resigned 27 April 2009) London EC2R 6DA profitable growth despite N Beighton (appointed 27 April 2009) JOINT BROKER: continued investment in NUMIS Securities Limited REGISTERED OFFICE: 5th Floor operational resources. Second Floor 10 Paternoster Square Greater London House London EC4M 7LT Hampstead Road ASOS enjoys strong and London FINANCIAL PR: increasing barriers to entry due NW1 7FB Cubitt Consulting Limited 30 Coleman Street to its dominant market position. Registered in England number London EC2R 5AL 4006623 REGISTRARS: INDEPENDENT AUDITORS: Capita Registrars PricewaterhouseCoopers LLP Northern House Chartered Accountants and Woodsome Park Registered Auditors Fenay Bridge 10 Bricket Road Huddersfield HD8 0GA St Albans Winning the online fashion race Hertfordshire AL1 3JX 01 Highlights 02 Our Business 16 Chairman’s Statement 18 Chief Executive’s Statement 22 Finance Director’s Review 26 Board of Directors 30 Corporate Governance 32 Directors’ Remuneration Report 36 Directors’ Report 40 Independent Auditors’Report 42 Consolidated Income Statement 43 Statements of Changes in Equity 44 Consolidated Balance Sheet 45 Company Balance Sheet 46 Consolidated Cash Flow Statement 47 Company Cash Flow Statement 48 Notes to the Financial Statements 79 Five Year Group Financial Summary Created by www.jonesandpalmer.co.uk The Online Fashion Store 16750ASOSPLC_CVRSSpine.indd 2 16750 24/08/09/08/0099 Proof 7 16750 24/08/09 Proof 7 24/08/2009 14:22 www.asos.com 01 REVENUE GROSS PROFIT OPERATING £’000 £’000 PROFIT £’000 +102% +92% +100% 81,044 37,284 71,699 13,935 6,962 163,395 42,614 18,126 3,246 20,317 8,649 1,344 6,479 14,428 840 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 PROFIT AFTER NET ASSETS EARNINGS TAXATION £’000 PER SHARE £’000 pence +98% +61% +97% 13.6 15,944 5,053 10,009 6.9 25,709 8,385 2,484 3.4 5,522 1,417 3,612 2.0 879 1.3 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 The Online Fashion Store 16750ASOSPLC.indd 01 16750 24/08/09 Proof 7 24/08/2009 14:24 www.asos.com 02 Our Business — ASOS IS THE NO. 2 — THE NUMBER OF PLAYER IN THE UK ACTIVE SHOPPERS ONLINE CLOTHING HAS INCREASED TO MARKET OVER 1.2 MILLION — ATT RACTING OVER — OVER 24,000 LINES 5.2 MILLION VISITORS FOR SALE PER MONTH ASOS PERCENTAGE AGE PROFILE OF AGE PROFILE OF OF RETAIL SALES FEMALE SHOPPERS MALE SHOPPERS n Womenswear 63% n Women 16 — 25 51% n Men 16 — 25 52% n Women’s non clothing 18% n Women 26 — 35 29% n Men 26 — 35 30% n Beauty 1% n Women 36+ 20% n Men 36+ 18% n Menswear 18% Menswear now accounts for Over half of our female shoppers Over half of our male shoppers 18% of our sales. are under the age of 25. are under the age of 25. ASOS PLC ANNUAL REPORT AND ACCOUNTS 2009 Stock Exchange Code: ASC 16750ASOSPLC.indd 02 16750 24/08/09 Proof 7 24/08/2009 14:24 www.asos.comwww.asos.com 03 Winning the online fashion race OUR STRATEGY OVERVIEW Our objective is to be the leading fashion website in the UK and attract growing numbers of overseas customers. A key element of our financial strategy is to maximise efficiency while continuing to invest in supporting our planned growth. Uncompromising Presentation The ASOS website is our shop window and we will continue to develop it to ensure that our customers enjoy their time on the site and find it easy to find their way around it. Incredible Choice We will offer our customers the latest fashion with a target of over 30,000 options for the Autumn / Winter season. This will be driven through both own label and branded products. Delivering Impeccable Service We will increase the number of delivery options available to our customers. AWARDS 2008: Company High Street Awards — Best Online Shopping APA Awards — Integrated Marketing Solution and Digital Activity of the Year The Online Fashion Store 16750ASOSPLC.indd 03 16750 24/08/09 Proof 7 24/08/2009 14:24 www.asos.com 04 Uncompromising Presentation CASE STUDY — ASOS MAGAZINE NOW — 500,000 AVERAGE THE THIRD LARGEST MONTHLY CIRCULATION AFTER CIRCULATION GLAMOUR AND COSMOPOLITAN ASOS LIFE In 2008 we joined the conversation with customers through various social media, starting official ASOS pages on Facebook, MySpace and Bebo. We have also introduced ASOS Life, which allows customers to talk to each other and key people within ASOS. ASOS PLC ANNUAL REPORT AND ACCOUNTS 2009 Stock Exchange Code: ASC 16750ASOSPLC.indd 04 16750 24/08/09 Proof 7 24/08/2009 14:24 www.asos.comwww.asos.com 05 The website received a complete overhaul in March 2009 and we introduced a number of new navigation features to enable quick and easy browsing of the extended product ranges. We also introduced a 360 degree view of all shoes and accessories and we introduced catwalk for menswear and for ASOS Outlet. Our 20 biggest brands are now represented by a ‘shop in shop’ providing a rich brand experience for our customers and a unique distribution platform for our brand partners. AWARDS 2008: APA Awards — Most Effective Retail Consumer Magazine of the Year PPA Awards — Customer Magazine of the Year The Online Fashion Store 16750ASOSPLC.indd 05 16750 24/08/09 Proof 7 24/08/2009 14:24 www.asos.com 06 IncredibleChoice Just a few of our Womens Brands Fashion Coutique JJ Park 6126 * Dagmar * Jovonna A.Y.Not Dead * Dahlia Junk Food ACNE DENIM Darling Just Cavalli Adidas Denham K By Karl Lagerfeld * Alexander Wang Designers Remix * Karen Millen Tees * Diesel Karen Walker * Alexandra McQueen Diesel Black Gold + Kate Fearnley * for Puma * Disney Couture * Kuyichi Alice & Olivia DKNY (Lounge & LAMB + Alice and Sens * Lingerie) * Lauren Moshi Alice McCall Dolly Dare + Lipsy Ann-Sofie Back * Edwin * Lisa Jayne Dann Antik Batik Eksempel * Little Miss Sew + April 77 * Ellisborough + LNA Aqua Couture Emporio Armani Lofli Armand Basi One (Lounge) * Manoush Arne and Carlos *+ Farhi by Nicole Markus Lupfer Bassike * Farhi * McQ by Alexander Belle Sauvage Fantasie McQueen Bench * Fashion Enter Mina AWARDS BERMAN BLACK * Fat Face Mini Market Best Behaviour * Freya Minimum * 2009: Beyond the Valley * Future Classics Motel Cosmopolitan Online Fashion Awards — Bibi Chemnitz * Genetic * Muu Baa Best Online Retailer Billabong Gestuz Natalie Encarnita Bllack Noir * Gomez Gracia *+ Nicola de Main 2008: Bolongaro Trevor Happie Loves It Nike Maxim Style Awards — Multiple Brand Retailer Calvin Klein Heaven & Earth + Nobody * of the Year (Lounge & Lingerie) Helene Berman + Numph * Chilli Pepper Horace NW3 *+ Chloe (Lounge & House of the Gods Orion Swim) * Humanoid * Pa:Nuu * CK by Calvin Klein Hurwundeki Patrizia Pepe Coast Ichi Paul & Joe Sister Coming Soon By Yoji Iro * Paul Frank Yamamoto + Jaeger London People Tree ASOS PLC ANNUAL REPORT AND ACCOUNTS 2009 Stock Exchange Code: ASC 16750ASOSPLC.indd 06 16750 24/08/09 Proof 7 24/08/2009 14:24 “WE WELCOMED A NUMBER OF NEW BRANDS TO www.asos.com THE SITE INCLUDING G-STAR, REISS, WAREHOUSE AND POLO RALPH LAUREN AND WE LOOK FORWARD TO INTRODUCING BOTH GAP AND 07 MANGO IN AUGUST 2009” Peoples Market Tree Hugger + Bourne Feud Kotur * Paul & Joe Tarina Tarentino Paves Peter Jensen * Twenty8Twelve Bracher Emden * Finsk Lacoste * Paul & Joe Sister Ted Baker Hei Poa Pinko + Unconditional *+ Calvin Klein * Firetrap Lala Berlin * Paul Frank Terra Plana Jelly Pong Pong Pinko Skin Unique Boutique Calvin Klein Jeans Fluff * LAMB People Tree Terry De Havilland JK Jemma Kidd + Poppy Valentine + Valentino Red * Carvela Fornarina Laura Tabor Philip Treacy The Earring Boutique Korres Pringle 1815 Vero Moda Cath Kidston Fred Perry Laurence Decade Philosophy by Toms Liparazzi Prophecy Vila Causse Gloves * French Connection L’Autre Chose Alberta Ferretti * Traits * Lizzie Public Beware Vix CC Skye Gaspard Yurkievich Leigh & Luca * Pied A Terre Twenty8Twelve Models Own * Puma Wayne *+ Chapeau Claudette G-Star * Les Nereides Pinko Ugg Mop Quontum Wheels & Doll Baby Charlott Vasberg * Guess Lipsy Poetic Licence United Nude Nails Inc. Rainbeaux Whistle Cheeky Monkey H By Hudson Lisa Galibardy Preen By Thornton Vivienne Westwood * Naturaleve Rare Wildfox * Chie Mihara Harajuku Lovers Lotus Bregazzi Vivienne Westwood O.P.I Rebecca Taylor * William Rast * Coast Harlot Lulu Guinness * Pringle for Melissa Ole Henriksen Reiss Won Hundred * Converse Havaianas Luxury Rebel Puma * VJC Versace Jeans POP Beauty Religion Work * Cornelia Jewellery * Helene Berman + Made Rebecca Minkoff William Sharp * Rimmel London Repetto YMC * Crumpet House of Harlow Maniyak + Reebok Yarnz * Rose & Co Richard Sorger *+ Yumi D&G Jewellery * Jewellery * Martine Sitbon * Reiss Zoe & Morgan Rose & Co Cherry Roxy David & Scotti * Hunter MCQ Repetto * Kiss Sass & Bide Accessories Dents * Imoni * Melissa Rocket Dog Beauty Seche * Satori 80%20 Diesel Irregular Choice Michael by Michael Salvador Sapena Anatomicals Skin Doctors Seafolly Abaco * Diesel Black Gold J Lo Kors *
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