Ethical e-tailer Adili has acquired ethical fashion brand Ascension.

The e-tailer, co-founded by former Asos director Quentin Griffiths, which launched on the junior AIM market in November, said it expects pre-tax losses for the full year to April 30 to come in at£1.4 million.

This represents a variance of£400,000 to market expectations. Adili said the loss was partly accounted for by a reduction in gross margin as a result of the clearance of stock purchase made predominantly in 2007. The rest is accounted for by additional investment including the acquisition.

Ascension is one of Adili’s top-selling brands, according to the retailer and provides a “strategically important entry-price point product”.

It said the assets of Ascension have been acquired by Adili at a “substantial” discount to original cost after the parent company became insolvent.

Adili also said sales for the full year will have grown approximately£365,000, which the retailer said was “broadly in line with market expectations”.

Sales in the second half of the year are expected to be up by in excess of 250 per cent year-on-year.

Adili will announce its prelims in July.

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