Asos is close to finalising an extension to its debt facilities and a potential equity issuance, ahead of announcing its interim results tomorrow.
Asos said it had evaluated and stress tested “a number” of different scenarios amid the Covid-19 coronavirus outbreak, and while the business’s financial position is “robust” it may sell shares and extend its debt facilities in order to come out of the crisis in “a position of strength”.
Asos said: “Whilst it is impossible to be precise as to all the impacts, we have stress-tested our liquidity under these scenarios and are comfortable that with mitigating actions there is sufficient liquidity within our existing £350m facility.
“Whilst the company’s financial position remains robust, the duration and impact of the Covid-19 related crisis remains uncertain and Asos wants to ensure it can weather and exit the current trading environment in a position of strength. The company confirms that it is close to finalising a potential equity issuance and extension to its debt facilities.”
The business said sales growth was over 20% in the first half of the year compared to the previous year, and it made progress in reducing costs: “Asos has also made significant progress on the goal of reducing non-strategic costs which, combined with stronger performance than anticipated in the January and February sale period, has resulted in a strong first-half profit and EBIT margin.”