Asos shoots higher as Frasers Group ups stake

Asos shares shot higher on Wednesday after Mike Ashley’s Frasers Group lifted its voting rights to 7.4% from 5.1%.

At 1210 BST, the shares were up 7.2% at 427.80p.

Asos shares slumped last week after it reported wider interim losses as shoppers continued to tighten their belts amid the cost-of-living crisis, even though the company said it was confident of a return to profit in the second half.

The company posted a loss before tax of £291m, compared with a loss of £15.8 a year earlier. On an adjusted basis, losses were £87.4m in the six months to February against a profit of £14.8m. Revenue fell 10% to £1.84bn on a constant currency basis.

The shares then tumbled again at the start of this week amid worries about the potential for a cash call.

Broker Shore Capital - which rates the stock at 'sell' - said in a note on Monday that "given the ongoing restructuring and cost savings initiatives, it is becoming increasingly evident that Asos will need to seek further capital infusion to support its long-term viability".