UK Small Caps

LONDON (ShareCast) - Online fashion retailer ASOS (LSE: ASC.L - news) produced another year of eye-popping growth, with sales doubling and profits up 93%, though it is now seeing slower growth rates.

Sales in the year to March jumped by 104% to £165m, while pre-tax profits jumped by 93% to £14.1m from £7.3m.

The number of active customers rose by 68% year on year to 1.2m at the end of May 2009 with international sales up 303% to £32.2m.

However, sales growth fell sharply in the 13 week to 26 June to 52%, which compares with 95% over the same period the previous year.

Chief executive Nick Robertson told ShareCast the lower sales growth was due to the company taking stock planning measures that accounted for a more difficult retail climate.

"We didn't approach the new year with the same gusto as we did in the past," he said.

"I'm not seeing any green shoots."

He pointed out that the age range ASOS targets, 16 to 34, was not as resilient as previously thought and is hit particularly hard by rising unemployment.

While cautious on the near-term outlook ASOS also outlined plans to expand overseas, with international sales now accounting for 19% of total revenues, compared with 10% in 2007/08.

The top five-performing countries outside the UK were Ireland, Denmark, Sweden France and the US.

Robertson told ShareCast that the company would continue serving foreign markets from its UK warehouse for the next two years and then consider which countries it was worth setting up infrastructure in.

Drug developer Alizyme (LSE: AZM.L - news) said it is likely to cut a 'significant' number of jobs and may even face going bust if it fails to secure sufficient funding.

The group said it does not now expect to have sufficient funding to last beyond the end of August and will be unable to continue as a going concern without the raising of additional funds.

"In the absence of additional funds, the company may face going into administration or liquidation," it said.

The group is also considering the suitability of its current main market listing given its market capitalisation and limited resources.

Alizyme has licensing and development agreements with regard to its ulcerative colitis treatment Colal-Pred with various parties. These agreements provide for payments to the group tied to the achievement of specified milestones and royalties.

As previously reported, the company is dependent on the milestone income in order to continue as a going concern.

As a result of potential significantly increased funding obligations under these contracts and the status of ongoing discussions with various parties to mitigate the potential impact on the company these funding obligations may have, there is now material uncertainty as to the receipt of milestone payments due.

Wireless equipment tester Anite (LSE: AIE.L - news) saw profits down in the year and warned 2009/10 will also be lower due to the rebasing of its travel business.

"We expect profits for 2009/10 as a whole to be lower than in 2008/09. This will be more marked in the first half as a result of the re-basing of our Travel business and an increased customer-led one-off investment in LTE (4G)," said the group.

Adjusted profit before tax rose to £18.1m from £16.7m last year but minus the adjustments, profits fell to £6.4m from £9.4m. Revenue fell to £90.1m (2008: £91.6m), at constant currency revenue was £82.6m.

The effect of currency movements during the year was to improve revenue by £7.5m and operating profit by £3.9m.

"I expect the current trading year to be challenging, particularly in the first half, given the impact of our additional investment in LTE and the effect of customer changes in Travel," said chief executive Christopher Humphrey

"The longer-term outlook for our new travel system and its international market, and for the growing adoption of LTE technology is, however, very positive," he added.

Private equity group Candover Investment has reportedly received a number of bid approaches for Belgium-based nappies and wet wipes maker Ontex.

The Financial Times is quoting people close to the company as saying that the business is worth about €950m.

Candover shot up earlier in the week after it said it is in full compliance of its covenant obligations and has ended takeover talks.

The group said recent actions mean that it will be in full compliance with the covenant obligations attached to its 2014 loan notes as at 30 June 2009.

The group, which received a range of proposals in March, said none of the proposals had "sufficient certainty" and value to justify consideration. "Accordingly, all offer discussions have now ceased," it added.