Daily Telegraph latest-
Asos fights back after Buncefield fire
By Caroline Muspratt (Filed: 23/12/2005)
Internet fashion retailer Asos expects to be fully operational by mid-January following the fire at Hemel Hempstead, and said any lost profit and damage to assets will be covered by insurance.
Nick Robertson at the damaged asos warehouse
The company’s warehouse was damaged by explosions at the Buncefield fuel depot on December 11.
The company had asked for its shares to be suspended while it assessed the effect of the explosion on its business. The shares have now resumed trading and fell 2˝ to 75p this morning.
Asos, previously known as As Seen on Screen, said: "It would now appear that most of the damage can be rectified within the next few weeks and that business should be fully operational with effect from mid January 2006."
Asos moved to the new warehouse at Hemel Hempstead in August and had been expecting its "biggest Christmas by a country mile," chief executive Nick Robertson previously told the Daily Telegraph.
He said earlier this month that the business would not be up and running for at least four weeks and the retailer usually changes the stock in its warehouse once every six weeks.
Mr Robertson said he was concerned that when trading resumed, he would have to sell off old stock at discount prices.
Asos said the company’s insurance would cover loss of profits and damage to its assets. It added that its insurer Fusion Insurance Services "has been exceptionally supportive and a significant interim payment has been received."
It said the interruption would not affect full-year profits which are expected to be in line with market forecasts, and it does not believe the company’s brand has suffered any long-term damage.
Analysts at Seymour Pierce said Asos was still the best potential growth story in the sector. They said: "Given the extent of damage in the area, Asos has escaped relatively lightly," adding: "Getting back into full operation after one month, without any damage to profitability, is as good as anyone could have hoped for."
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