• The company announces that most of the damage caused to its Hemel
Hempstead premises by the explosion at the Buncefield oil depot can be
rectified within the next few weeks. As a result, the business should be
fully back in operation by mid-January.
• The board also confirms that the company has been carrying insurance to
cover damage to the property, business interruption and resulting loss of
profits. Moreover, the company’s insurer has been extremely supportive
and already an interim payment has been received by ASOS.
• As a result, the company believes that profits for the current financial year
will not be affected, and should be in line with market expectations.
• Moreover, despite the disruption to the business, the board does not
believe that any long term damage has been done to the brand.
• Given the extent of damage in the area, ASOS has escaped relatively
lightly. Moreover, although this happening at the key time of the year has
meant that we shall never know just how good Christmas could have been
(we suspect very good) equally, getting back into full operation after one
month, without any damage to profitability, is as good as anyone could
have hoped for.
• Despite the valuation, ASOS provides one of the best growth situations in
the retail sector. Any fall-back on the lifting of the suspension of the
shares should give a buying opportunity. BUY.
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