Nick Robertson, founder and CEO of fashion brand, Asos has been awarded £24.4 million in shares following a series of targets being met, resembling an incredible year overall for the company.
Profits in the business nearly doubled from £15.7 million to £30.3 million, with executives now expected to input a further £57 million into shares.
The awards comes as a result of an incentive scheme formed three years ago, totaling £66 million shared among seven executives, and has led to shares closing at £16.41, an increase of 119 pence.
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The seven investors pumped £200,000 in to the scheme, at a time when Asos’s market capitalisation was £219 million. Three years on and that figure now stands at £1.17 billion, even more than popular high street chains such as Debenhams.
The last year’s sales also took a massive 46 percent leap to £495 million, with analysts at Euromonitor predicting the value of the company to reach £76 billion by 2015. This is based on the expected continual growth of Asos overseas.
Robertson fears that the situation in the UK remains bleak however:
“I am concerned about my core customer base in the UK, twentysomethings. If they are lucky enough to have a job there is no access to overdrafts and to credit. There is definitely no light at the end of the tunnel.”
China and Russia look like the next avenue of opportunity for Robertson and his soaring company, with the latter already within the top 10 global markets for Asos, without the site even being available in Russian. Since a German translation was made available, transactions in the Eastern European superpower ‘doubled overnight’ so the introduction of a similar Russian version could reap even more rewards.
The trend of overseas sales works well for Asos too, with no VAT being charged on goods, leading to free shipping. It has also been revealed that overseas customers are more likely to purchase items that are Asos-branded, increasing their profit margins even further.
Overall, Robertson has once again pushed the boundaries of the online retailer to new heights, but even he was surprised by the magnitude in which it was achieved this time.
“The scheme was set up three years ago and approved by shareholders. It set very stretching targets and I don’t think anyone, when we put in our money, thought we’d hit 100pc of our targets.”