MySale Group PLC Pre-Close Trading Update (6976U)

TIDMMYSL

RNS Number : 6976U

MySale Group PLC

20 January 2017

MYSALE GROUP PLC

Pre-close Trading Update

MySale Group plc (AIM: MYSL) (the "group") the leading online retailer, is pleased to provide a trading update for the six months to 31 December 2016 ahead of the publication of the group's Interim Report on 1 March 2017.

Highlights

-- A strong first half with underlying(1) EBITDA up 100% to c.A$3.0 million (H1 FY16: A$1.5 million)

   --      Maintaining recently upgraded full year guidance 
   --      Online(2) revenue increased 18% to A$126.5 million (H1 FY16: A$107.0 million) 
   --      Active customer base increased 19% to 870,000 (H1 FY16: 731,000) 
   --      Total gross profit increased 17% to A$38.4 million (H1 FY16: A$32.7 million) 

-- Strong balance sheet with net cash balance increased to A$29.1 million from A$27.5 million at end of June 2016 and A$23.4 million at 31 December 2015

   --      Partnership with gilt.com launched 

The group has made excellent progress in the first half of the current financial year. Continued focus on customer conversion and engagement meant that the active customer base increased 19% and in turn online revenue, which represents over 90% of the group total, has experienced a strong growth rate, of 18%, to A$126.5 million (H1 FY16: A$107.0 million).

Group revenue has risen 6% to A$136.1 million (H1 FY16: A$128.2 million) which reflects the strong online growth referred to above, combined with a planned reduction in lower margin offline revenue. This is evidenced by the continued strong progress in gross margins where a 270bp improvement drove a 17% uplift in gross profit to A$38.4 million (H1 FY16: A$32.7 million).

This strong trading performance combined with a carefully controlled cost base will result in underlying EBITDA double the prior year at circa A$3.0 million (H1 FY16: A$1.5 million) for the half year which is ahead of the group's expectations.

Having updated the market at the end of November 2016 with increased guidance, at this stage, the Board anticipates a full year outturn in line with analysts' projections and looks forward with confidence to the second half of the year. A further update on trading will be provided with interim results.

The group has maintained its strong balance sheet during the period. Net cash balances increased to A$29.1 million (H1 FY16: A$23.4 million) in this half, from A$27.5 million at the end of the previous year.

The group is pleased to confirm it has launched a strategic partnership with US online retailer gilt.com, part of the Hudson's Bay Company, which represents another important step in the development of the group's retail marketplace platform. It's anticipated this collaboration will add significant product selection, in multiple categories, to this platform.

(1) Underlying EBITDA: earnings before interest, taxation, depreciation and amortisation and before non-recurring and certain non-cash items

(2) Online: the group's online web-based retail activities

Carl Jackson, Chief Executive Officer commented;

"We are pleased with the strong start we have made to the year. Financially we have performed well and strategically have made good progress against our goals.

"In ANZ we have continued to shift the emphasis of our marketing towards retention and re-engagement and have also seen good progress in the scaling of our retail marketplace platform.

"We carry good momentum into the, historically stronger, second half of the year and have a number of exciting initiatives which will support our future growth. "

Enquiries:

 
 MySale Group plc 
 Carl Jackson, Chief Executive          [phone] 
  Officer                                843 
 Graeme Burns, Corporate Development    [phone] 
  Director                               4516 
 
 
 Zeus Capital Limited (Nominated        [phone] 
  Adviser & Joint Broker)                5000 
 Nick How/Giles Balleny, Corporate 
  Finance 
  Benjamin Robertson, Corporate 
  Broking 
 
                                        [phone] 
 N+1 Singer (Joint Broker)               3000 
 Nic Hellyer 
 
                                        [phone] 
 Maitland                                5151 
 Dan Yea 
 

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 2,500 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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January 20, 2017 02:00 ET (07:00 GMT)