Danish billionaire Anders Povlsen, the wealthiest man in Scotland, could be planning a takeover of the online fashion chain Asos.

Mr Povlsen, who owns vast tracts of northern Scotland and the former Jenners building in Edinburgh, has increased his stake in Asos, prompting speculation of a move to acquire the group.

He has been a long-standing shareholder in Asos, but Danni Hewson, head of financial analysis at AJ Bell, says that buying an additional chunk of stock is “out of the ordinary” and it has given the share price a lift.

“It puts his shareholding within a whisker of the 30% level that triggers a mandatory takeover offer,” she said.

“The Danish billionaire has already been ceded control of Topshop which has been the subject of a flurry of speculation that it might just make a welcome return to UK high streets.

“There’s something about an old favourite, a brand that has so much clout and shared memory that the mere whiff of a revival sparks headlines.

“Judging by the response to Boohoo’s decision to push Debenhams back into the limelight, there’s a lot to be said for bygone brands.

“The market lost faith in Asos years ago and the share price has remained weak, but a Topshop revival could change all that.

“There’s also the possibility that Povlsen might feel that Asos is better taken off the market and nursed back to health out of the public spotlight.”

In a trading update on Friday (21st) Asos said it had seen a significant improvement in profitability in the first half, despite continued volume deleverage.

This follows a strong gross margin development driven by lower markdown activity and increased full-price mix, and continued cost discipline.

In H1 FY25, the company expects revenue growth in line with, and adjusted EBITDA ahead of consensus.

ASOS own brand full-price sales, a core engine of its customer proposition, returned to growth in the first half.

This was enabled by its Test & React model, now more than 15% of own-brand sales.

The company announces first half figures on 24 April.