Asos has seen half-year profits tumble as the online retailer blamed expansion costs and heavy discounting for hitting its performance.

The group saw pre-tax profits crash 87 per cent to £4 million, which it blamed on "temporary transition costs" linked to its warehouses in Europe and Atlanta.

In the US, Asos was hit by staffing issues, resulting in a backlog of orders, while in Europe the group is automating its warehouse in Berlin.

Sales grew 14%, or 12% at constant currency, to £1.3 billion in the six months to February 28.

UK sales rose by 16% and international sales by 12%.

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Chief Nick Beighton said: "We have identified a number of things we can do better and are taking action accordingly."

Shares were up nearly 3% in morning trade at 3,230p.

Retirement home group McCarthy & Stone saw profits tumble in the first half as it was stung by exceptional costs linked to a strategy shift.

The firm said bottom line pre-tax profit decreased 66 per cent to £3.6 million in the six months to February 28, as it booked £14 million in charges.

McCarthy blamed "restructuring and redundancy costs, realignment of land bank to deliver steady state volumes and consultancy fees" for the profits fall.

Revenue rose 17% to £280.5 million, but the forward order book is also 17% behind last year at £485 million.

British shaving brand King of Shaves has vowed to go single-use plastic-free within four years to help tackle pollution, but said the move will hit its profits.

The group revealed that it has already spent £120,000 on its shift to refillable products, with its first range, Code Zero, being rolled out from July.

Founder and executive chairman Will King said that, while the switch away from single-use plastic will eventually double annual revenues - from around £3 million now to about £6 million - it will knock profit margins in the short term.