TIDMMYSL
RNS Number : 4005U
MySale Group PLC
29 July 2020
29 July 2020
MySale Group plc
(the "Company", "MySale" or the "Group")
Trading Update
MySale (AIM: MYSL), a leading international online retailer, is
pleased to provide a trading update for the 12 months to 30 June
2020.
Highlights:
-- Revenue of A$131m, in line with management expectations, following strong Q4 trading
-- Positive underlying EBITDA in Q4 and cash flow positive
-- Significant reduction in cost base (FY20 $A49m versus FY19: $A91m)
-- Net cash position of $A6.6m. Debt free
The Group has made continued progress with its 'ANZ First'
strategy over the year, despite the more recent disruption caused
by the onset of COVID-19 and national lockdowns in the ANZ
region.
Encouragingly, the Group traded in line with management
expectations, returning to positive underlying EBITDA in the final
quarter of the year. This follows increased revenues with the
simplification of the Group's business model and reduction and
alignment of the cost base.
An improvement in the quality of brands on the Group's websites
has contributed towards an increase in the average order value
(AOV) per transaction in the final quarter. In addition, there has
been a significant reduction in the delivery losses as a result of
the restructuring of the Group's international supply chain and
improvements to its proprietary marketplace platform.
The Group's counter-seasonal proposition continues to resonate
with its partners, with the focus on working directly with branded
fashion, footwear, accessories, home, health and beauty partners.
The flexibility of the proprietary marketplace platform allowed the
Group to optimise the shift in its traditional channel mix as it
experienced an uplift in demand for homewares and other household
categories during the lockdown.
Following the initial onset of the COVID-19 pandemic, the Group
experienced significant and varied disruptions to business
operations, all of which were managed to ensure business
continuity. The supply of inventory was disrupted as was the
reliability of international shipping. The Group continues to
expect long-term increased interest from domestic and international
brand partners seeking a counter-seasonal proposition to sell
off-price inventory through a third party channel into ANZ.
Although it is early days and the board is conscious there are
still significant risks to the business from the ongoing COVID-19
pandemic, it is pleasing to see the Group's continued strong
trading for the start of the current financial year.
The Group continues to operate from a net cash position
following the decisive actions taken by management in 2019 and
ongoing cash preservation and cost saving initiatives. At 30 June
2020, the Group's cash balance was A$6.6m, with no debt.
Carl Jackson, CEO of MySale, commented:
"Despite the disruption and challenging environment caused by
the COVID-19 pandemic, we have continued to accelerate our 'ANZ
First' strategy over the second half and are beginning to see the
results of our decisive actions, achieving profitability for the
first time in two years in the final quarter of the year.
"The MySale proposition continues to resonate and become
increasingly relevant for our current and potential international
brand partners, offering a counter-seasonal proposition as they
seek to clear inventory built up as a result of economic disruption
caused by COVID-19.
"Whilst there has been a significant shift to online, digital
sales only represented 12%* of total Australian retail sales for
the month of March. As a business, we are well positioned to take
advantage of the accelerated shift to online, serving our brand
partners' needs as we focus on the off-price fashion and homeware
categories. We have a very focused strategic direction, led by a
dedicated and experienced management team, and look forward with
confidence."
* Australia Post Inside Australian Online Shopping 2020
eCommerce Industry Report
Enquiries :
MySale Group plc
Carl Jackson, Chief Executive Officer +61 (0) 414 817 843
Mats Weiss, Chief Financial and Operating Officer +61 (0) 403 810 762
N+1 Singer (Nominated Adviser and Joint Broker) +44 (0) 20 7496 3000
Mark Taylor
Justin McKeegan
Carlo Spingardi
Zeus Capital (Joint Broker)
Daniel Harris/Ben Burnett, Corporate Finance
John Goold, Corporate Broking +44 (0) 20 3829 5000
MHP Communications (Financial PR Adviser) +44 (0) 20 3128 8570
Simon Hockridge
Giles Robinson
Pete Lambie
About MySale
MySale is a leading international online retailer with
established retail websites in Australia, New Zealand and
South-East Asia. Founded in 2007, the Group provides customers with
access to outstanding brands and products at discounted prices
whilst simultaneously providing brand partners with unique
international inventory and sales solutions.
The Group operates an Inventory Light Marketplace Platform in
ANZ and SE Asia for domestic and international brands and offers a
number of solutions for brands including Just in Time [JIT],
Fulfilment By MySale [FBM], Drop Ship [DS] and Own-Buy [OB].
MySale's core product categories are womenswear, menswear,
footwear, sports, health & beauty, homewares, technology and
personalised gifts. Customers' shopping experiences are enhanced by
the Group's deployment of leading edge technology to ensure
personalised and localised product offerings.
The Group operates 12 websites in five countries; OzSale,
BuyInvite, DealsDirect, OO, Top Buy and IdentityDirect in
Australia; NzSale, Buyinvite and IdentityDirect in New Zealand;
SingSale in Singapore, and MySale in Malaysia and Hong Kong.
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END
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