Asos said it would move to the main market of the London Stock Exchange after 20 years on Aim, as the online clothes retailer reported sales growth despite supply chain challenges.
The seller of party clothes said demand had been “volatile” in the four months to December 31 as a result of Covid but sales grew by 5 per cent in line with guidance.
Asos, which listed on the Alternative Investment Market in 2001 and has been one of AIM’s largest companies, said it planned to move to the main market by the end of February 2022, as it seeks to attract more investors.
Mat Dunn, chief operating officer, said: “The time is now right to move to the main market as we focus on delivering our medium-term guidance and longer-term growth ambitions.”
Former chief executive Nick Beighton left the company in October, when it issued a profit warning, leaving Dunn to handle daily running of the business. Asos’s share price was up by 8 per cent in early trading.
Despite sales growth over Christmas, Asos said gross margins fell by 400 basis points to 43 per cent, as it cleared slow-moving stock, faced elevated freight costs and resorted to air freight to tackle supply constraints.
The Topshop brands, which Asos acquired from Arcadia in February 2021, performed well, posting 200 per cent year-on-year growth.
Dunn said that Asos had had a “robust” start to the year in line with guidance, despite challenging market conditions.
Asos also announced the appointment to its board of Patrick Kennedy, the chair of Bank of Ireland and former Paddy Power chief executive.
Sherri Malek, an analyst at RBC Capital Markets, said the move to the main market was “another positive step for the share price”.