Asos: share price surges after a series of positive surprises
(CercleFinance.com) - Asos shares jumped over 14% on Thursday morning in London, as the online ready-to-wear companny reported a positive outlook and announced the sale of its Topshop and Topman banners.
This morning, the British group said it expected 2024 Ebitda to be at the top end of market forecasts.
Analysts were previously expecting annual Ebitda of between £20m and £75m, with an average consensus of £43m.
In another pleasant surprise, Asos has announced that it has reached an agreement with the Heartland Group that will enable it to partially divest its entry-level clothing chains Topshop and Topman.
In detail, the partners plan to form a joint venture that will be 75%-owned by Heartland, a stake worth £135m on the basis of a total enterprise value of £180m.
Asos will hold the remaining 25%, which will give it the right to continue marketing the products of both brands on its platforms.
Above all, the operation will enable Asos to take in £118m in cash to ease its debt burden, which stood at £348.8m last March.
Finally, the company announced the conclusion of a refinancing agreement, which will result in the issue of £250m of convertible bonds maturing in 2028.
This transaction is intended to partially replace a previous £500m 0.75% convertible bond, which was due to mature in 2026 and which will be the subject of a redemption offer.
All these announcements were welcomed on Thursday morning by the London Stock Exchange, where the share price climbed 13.2% to reach annual highs.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
This morning, the British group said it expected 2024 Ebitda to be at the top end of market forecasts.
Analysts were previously expecting annual Ebitda of between £20m and £75m, with an average consensus of £43m.
In another pleasant surprise, Asos has announced that it has reached an agreement with the Heartland Group that will enable it to partially divest its entry-level clothing chains Topshop and Topman.
In detail, the partners plan to form a joint venture that will be 75%-owned by Heartland, a stake worth £135m on the basis of a total enterprise value of £180m.
Asos will hold the remaining 25%, which will give it the right to continue marketing the products of both brands on its platforms.
Above all, the operation will enable Asos to take in £118m in cash to ease its debt burden, which stood at £348.8m last March.
Finally, the company announced the conclusion of a refinancing agreement, which will result in the issue of £250m of convertible bonds maturing in 2028.
This transaction is intended to partially replace a previous £500m 0.75% convertible bond, which was due to mature in 2026 and which will be the subject of a redemption offer.
All these announcements were welcomed on Thursday morning by the London Stock Exchange, where the share price climbed 13.2% to reach annual highs.
Copyright (c) 2024 CercleFinance.com. All rights reserved.