Business

Asos chief Nick Beighton resigns as it warns over supply chain pressures

Nick Beighton, the chief executive of Asos, is to step down with immediate effect as the online fashion retailer warned that supply chain problems and rising costs will affect its profits.

Asos said Beighton and the board had agreed it was “the right time” for him to go. It said after the departure of Beighton, who has been at the company for 12 years with the past six in the role of chief executive, it will continue to focus on international growth.

“Asos’s management and board have spent considerable time over recent months developing and validating a clear strategic plan to accelerate international growth, building on Asos’s undoubted strength in the UK,” said the Asos chairman, Adam Crozier, who is to stand down next month to take over as chairman at BT.

“Key to that is ensuring that we have the right leadership in place for the next phase, and the changes we are announcing today are designed to ensure we deliver against our clear strategic intent.”

The company, which has benefited from the online shopping boom during the Covid pandemic with revenues up by a fifth and profits rising by more than a third in the year to end of August, warned that the global supply chain shortage is affecting its business.

“Supply chain challenges loom relatively large,” said the Asos chief financial officer, Mat Dunn, who will lead the business on a day-to-day basis until Beighton’s successor is found. “There is anticipation of extended supply lines and pressure on some brand partners means lower availability than we would want. We are expecting the situation to improve [but] peak [pressure] on global supply chain capacity is in the run-up to Christmas, early January through to lunar new year.”

Asos said there would be “notable cost headwinds” including inbound freight costs, labour cost inflation, outbound delivery costs and Brexit duty.

The company, which reported adjusted pretax profits up 36% to £193.6m in the year to the end of August, said it expects profits to fall between £110m and £140m for its next financial year. This is below analysts’ expectations of £186m.

Shares plunged more than 15% in early trading on Monday and have fallen nearly 50% this year.

Beighton said: “I have enjoyed every moment of my 12 years at Asos. When I joined, there were fewer than 200 people and we had annual sales of around £220m. I leave a business reporting turnover of almost £4bn, with more than 3,000 fantastic Asos-ers delivering for 26 million customers in 200 markets around the world.”

Asos said that revenues grew by 22% year on year to £3.9bn, driven by “exceptional” growth of 36% in the UK. In the US revenues grew 21%, Europe rose by 15% while across the rest of the world revenue growth was just 6%.

The company said its performance across the rest of the world was particularly poor because of how long deliveries take: for example, in Australia customers have to wait 30 days for an order to arrive.

Dunn said that the company aims to double the size of its US and European business in the medium term. “We want to evolve from a UK-centric brand,” he said.

“Asos seems to have found it hard to keep up with the fast fashion movement in recent years, coming in for criticism for not being able to turn around new product designs quickly, experiencing warehouse problems and poor stock availability,” Russ Mould, the investment director at AJ Bell, said. “Customers have so much choice with where they buy clothes and competition continues to grow. Asos will need to do something extra to make it stand out from the crowd.”

Earlier this year Asos acquired the Topshop and Miss Selfridge brands for £330m, but Dunn said not to expect a flurry of new deals.

“We have the strength and flexibility on our balance sheet and we have the strategic option and if things meet our criteria we will look at them,” he said. “I anticipate we will look at lots of things but not do very many [deals].”

Business

BREAKING: Air Peace suspends flight operations nationwide

Lagos to Abuja now costs N100,000 as operators list challenges

Air Peace Ltd. has announced the suspension of all flight operations nationwide due to the ongoing strike embarked upon by the Nigerian Meteorological Agency (NiMET).

This is contained in a statement signed by the Head of Corporate Communications, Air Peace, Dr Ejike Ndiulo, on Wednesday in Lagos.

According to Ndiulo, the decision is necessary because NiMet is the agency responsible for issuing CNH (Current Nowcast of Hazardous Weather) reports, critical for safe landings, especially during this season of heavy rainfall and thunderstorms.

He said without these reports from the control tower, flight safety could not be guaranteed.

“As a safety-first airline, we have chosen to act responsibly by suspending operations until NiMet resumes full service.

“We understand this may cause inconvenience, and we sincerely apologise. Passengers will be contacted with updates and options for rescheduling,” he said.

The staff of NiMET on Tuesday commenced an indefinite strike over the condition of service and other demands.

Business

NNDC nets N3.24bn profit, unveils bold vision for growth

The New Nigeria Development Company Limited (NNDC) has reported a profit before tax of ₦3.24 billion for the financial year ended March 31, 2024, representing a significant growth from ₦2.51 billion recorded in the previous year.

This was disclosed by the Chairman of the Board, Mr Lamis Dikko, during the company’s 56th Annual General Meeting held at The Raffle Suites on Wednesday in Kaduna.

In his address, Dikko appreciated the Northern States Governors’ Forum (NSGF) for its strategic direction and confidence in the newly restructured board.

He particularly commended the forum’s Chairman, Gov. Muhammadu Yahaya of Gombe State, for his leadership and commitment to the reforms that wete repositioning the NNDC for optimal performance.

The chairman also acknowledged the contributions of the immediate past biard led by Alhaji Tanimu Yakubu, highlighting their efforts in reorganising the Company’s investment activities, especially in the capital market.

According to him, in spite of the economic challenges in 2024, including soaring inflation that peaked at 34.6 per cent and food inflation at 39.93% the NNDC recorded a 33 per cent increase in revenue.

This totalled ₦794.64 million, while cutting down operating expenses to ₦974.14 million, a 9 per cent drop from the previous year.

Dikko attributed the improved performance to prudent resource management and operational efficiency, with the Company’s Shareholders’ Fund standing at ₦26.77 billion as of March 31, 2024.

As part of its corporate social responsibility, the NNDC was proposing sustained funding to the Young Professional Development Trust (YPDT) and the Musa Bello Learning Resource Centre Fund.

He said the company had so far trained 1,718 young Northern professionals across various fields including Accounting,Insurance, Stockbroking, and IT through partnerships with institutions like ICAN.

According to him,looking ahead, the NNDC board has pledged to maintain strong corporate governance and pursuance of strategic investments.

It would focus on drive of inclusive growth in line with the vision of its founding fathers, notably the late Sir Ahmadu Bello, the Sardauna of Sokoto.

“The new NNDC board is committed to building a stronger, more prosperous company that will continue to deliver long-term value for shareholders and contribute meaningfully to the development of Northern Nigeria,” Dikko affirmed.

The chairman concluded by commending the NNDC staff and the Northern Governors for their support while calling for continued collaboration to achieve shared developmental goals.

Business

Nigeria imported N14t Chinese goods in 2024 – NBS

The sharp imbalance also highlights the urgency of industrialising Nigeria’s export base to achieve more equitable trade terms. China retained its position as Nigeria’s top import partner in 2024, ahead of countries such as Belgium, India, the Netherlands, and the United States.

For exports, China lagged behind nations like Spain, India, the Netherlands, France, and Indonesia. Trade between the two countries has grown steadily over the years, driven by bilateral agreements, China’s infrastructure investment footprint in Nigeria, and the demand for Chinese machinery and manufactured goods.

There have been concerns around the structural trade imbalance, with experts urging policymakers to negotiate fairer trade terms and support local industries to reduce dependence on imports.