Asos Unloads Lichfield Centre to M&S in £67.5M Deal, Lifts Cash Position

Asos agrees £67.5M sale of Lichfield fulfilment hub to Marks & Spencer, netting ~£66M after costs. Stock jumps over 7% as retailer shores up finances and cuts annual operating expenses.

The fashion retailer's balance sheet is getting a fresh injection of liquidity. Asos has agreed to sell its automated fulfilment hub in Lichfield to Marks & Spencer for £67.5 million, a transaction that triggered a sharp rally in the stock — which at one point surged more than 12 percent before settling to a 7 percent-plus gain on the day.

After accounting for transaction costs, the company expects net proceeds of at least £66 million. A one-time pre-tax profit of roughly £85 million will also hit the books from the disposal, while annual operating expenses are set to fall by around £6 million. The deal is slated to close in the second half of fiscal 2026.

Asos has been methodically pruning its infrastructure to shore up its finances. Earlier moves included refinancing exercises and the repayment of convertible bonds in late 2025. As of March 1, the group held cash and equivalents of £209.5 million. Post-sale, pro-forma net debt (excluding lease liabilities) is seen at approximately £228 million — a meaningful cushion for a retailer exposed to fickle consumer demand.

The company will retain its core sites in Barnsley and Berlin, leaving only the Atlanta facility as a non-core asset still on the books. Management has reiterated its profit guidance for the current financial year, emphasising disciplined margin-focused growth over chasing raw volume.

For M&S, the 437,000-square-foot site — sitting idle since its previous occupant vacated — offers a faster and more cost-effective route to expand its online fashion operation. The retailer plans to reopen it in 2027 as an automated distribution centre, creating around 600 jobs.

Asos’s operational backdrop is showing tentative signs of improvement. Customer numbers rose 9 percent in March, the first such increase since 2021. The stock trades at €2.73, barely above its 50-day moving average of €2.74. Over the past 30 days it has gained 9.22 percent, but year-to-date it remains down 17.92 percent.

Analyst reaction has been broadly constructive, if mixed on upside potential. JPMorgan lifted its price target to 285 pence while retaining a "Neutral" rating. Berenberg stuck with "Buy" and a 600-pence target, viewing the disposal as a positive step — albeit with divergent views on the share’s ultimate runway.