TIDMMYSL
RNS Number : 8023E
MySale Group PLC
21 July 2016
Pre-close Trading Update
MySale Group plc (AIM: MYSL) (the Company) the leading
international online retailer is pleased to provide a trading
update for the 12 months to 30 June 2016 ("FY2015-16").
Highlights:
-- Ahead of market expectations for both revenue and underlying EBITDA
-- Underlying EBITDA(1) expected to be above current market
expectations at approximately A$5 million versus consensus market
forecast of A$4.7 million
-- Revenue increased by 7% to A$252 million (2015: A$235
million) for the full year following second half growth of 10%,
also above current market expectations
-- Revenue growth in all territories, but notable strength in
the target growth markets UK (+140%) and Asia (+20%)
-- Gross Profit increased 21% driven by a 300bp margin
improvement, with growth of 26% in the second half
-- Strong balance sheet with an increased cash balance of A$34
million (31 Dec 2015: A$30 million) and underlying cash position of
A$43 million, representing c 16 pence per share
(1) Underlying EBITDA: earnings before interest, taxation,
depreciation and amortisation and before certain one-off items of a
non-recurring nature and other non-cash items
In the second half of the financial year the Group continued its
good progress. The active customer base returned to growth, core
customer metrics remained robust, average order value increased and
both revenue growth and margin improvement accelerated in the
second half of the year, delivering full year performance ahead of
expectations, despite some currency headwinds during the year.
This continued improvement was driven by the Group's clear focus
on providing exceptional value to customers and supported by proven
digital marketing activity and continued technology investment.
The Group has now grown underlying EBITDA in each of the last
three half year periods.
All three Group territories have seen increases in revenue and
gross profit however it is in South-East Asia(2) and the United
Kingdom that the Group has seen the most significant rates of
growth. The Group's strategy for these, newer, territories has been
firstly to grow the active member base and then to build
profitability.
(2) South-East Asia: Hong Kong, Malaysia, Singapore, Philippines
and Thailand
The refocus on the Group's core business instigated in early
2015 has delivered particularly strong results in the United
Kingdom where revenue grew by 140% over the course of FY2015-16,
accelerating to over 200% in the second half. The United Kingdom
trades predominantly under the premium Cocosa brand, which has
resonated strongly with consumers, and has been acquiring and
converting customers at the fastest and most cost effective rate of
all the Group's territories. There is an enormous opportunity to
grow the business in the United Kingdom and the Group plans to
increase investment in customer acquisition and grow the customer
base.
The Group completed its acquisition of the customer lists and IP
of the Australian online retail business at the end of January 2016
and subsequently these retail websites were successfully
re-platformed and integrated with the Group's operations. This
acquisition is important in three regards. Firstly, it grows the
Group's ANZ(3) active customer base, and secondly, it accelerates
the Group's development of its retail marketplace capability,
focussed on complementary product categories, which provides a good
base for further growth in FY2016-17 and beyond. Thirdly, it
demonstrates the Group's ability to efficiently integrate
acquisitions onto the Group's technology and operational
platforms.
(3) Australia and New Zealand
The Group had a considerably better year in FY2015-16 with
significantly improved operational performance and good progression
against its strategic aims. We built on a solid first half with
further improvements in the second half and the challenge now is to
take the current momentum and execute on the real and exciting
opportunities the Group has to grow the business significantly
further.
The Group's diversified international operations should be well
insulated from any uncertainty associated with the United Kingdom's
prospective exit from the EU and in the immediate term the Group
will experience a slight benefit from a weaker GBP Sterling
exchange rate. Additionally the Group's core customer offer of
compelling, discounted value in branded products should be highly
relevant for consumers in tightening economic conditions.
Enquiries:
MySale Group plc
Carl Jackson, Chief Executive tel: +61 (0) 414
817 843
Graeme Burns, Corporate tel: +44 (0) 777
Development Director 585 4516
Zeus Capital Limited tel: +44 (0) 20
Nick How/Giles Balleny, 3829 5000
Corporate Finance
Benjamin Robertson, Corporate
Broking
Maitland tel: +44 (0)20
Dan Yea 7379 5151
About MySale Group
MySale is a leading international online retailer with
established online flash sales and retail websites in Australia,
New Zealand, South-East Asia and the United Kingdom. Founded in
2007, the Group provides customers with access to outstanding
brands and products at discounted prices whilst simultaneously
providing brand partners unique international inventory and sales
solutions.
The Group's flash sales websites host time limited sales in each
of its territories. These flash sales are focused on fashion,
apparel, health, beauty and homeware categories and are
predominantly undertaken on a consignment inventory basis. The
retail websites operate in Australia and focus on similar product
categories using mostly drop-shipped inventory.
Customers' shopping experiences are enhanced by the Group's
deployment of leading edge technology to ensure personalised and
localised product offerings. Customer convenience has been at the
heart of the Group's technology development since the earliest days
and now mobile commerce is the Group's main sales channel.
The Group's online sales are supported by a robust and flexible
network of in-house supply chain infrastructure and technology that
enables MySale to offer products from around the world for sale and
delivery to customers in each territory.
As a result of these exceptional capabilities in inventory
management and international sales MySale has built an enviable
portfolio of over 3,000 brand partners from whom products are
sourced.
The Group operates websites under a number of different brands
all of which operate on a uniform technology platform and a single
international logistics infrastructure
The Group's flash sales brands are; OzSale and BuyInvite in
Australia; NzSale in New Zealand; SingSale in Singapore; MySale in
Australia, New Zealand Malaysia, Thailand, the Philippines, the
United Kingdom and Hong Kong, and Cocosa in the United Kingdom,
Australia and New Zealand; whilst the Group's retail websites are
Deals Direct, OO.com and Top Buy in Australia.
This information is provided by RNS
The company news service from the London Stock Exchange
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