'Online retailer Asos, whose business has been severely affected by the Buncefield oil depot explosions, has asked for the suspension on its shares to be lifted and expects to be trading again by the middle of January.
Asos (ASC) only recently moved into its new warehouse at Hemel Hempstead as part of its rapid growth plan but the explosions caused serious enough damage for the business to halt and Asos to ask for its shares to be suspended.
However now it appears the damage can be rectified 'within the next few weeks' and Asos will be fully operational by mid-January. It is well covered by insurance and has already received a 'significant' interim payment from its insurers.
As a result Asos believes it will meet market expectations for the year to March and it reckons no long term damage has been done to the brand. Its shares are unchanged at 76p which suggests investors have enough faith in Asos' ability to resume its strong growth.
Analysts have also been supportive with Seymour Pierce reiterating its buy recommendation. It said: 'Given the extent of the damage in the area , Asos has escaped relatively lightly. Getting back into full operation after one month, without any damage to profitability, is as good as anyone could have hoped for.
'Asos provides one of the best growth situations in the retail sector. Any fall back on the lifting of the suspension should give a buying opportunity.'
Numis has reiterated its 85p target price and said: 'We share the company's view that this should not cause any long term damage to their brand.'
Adstar stock quotes
Adstar stock charts
Follow this thread
