MySale Group PLC Pre-close Trading Update (1132M)

TIDMMYSL

RNS Number : 1132M

MySale Group PLC

26 July 2017

26 July 2017

Pre-close Trading Update

MySale Group plc (AIM: MYSL) (the "group") the leading online retailer, is pleased to provide a trading update for the twelve months to 30 June 2017 ahead of the publication of the group's Preliminary Results on 26 September 2017.

During the year financial performance improved significantly and there was excellent progress against the group's strategic goals.

Highlights

Financial

   --      Online(1) revenue grew by 10%, to A$240 million, driven by the growing active customer base 

-- Gross profit increased 14% to A$76 million, as gross margins increased 190bp, with an accelerating rate across the second half

-- Underlying(2) EBITDA increased, for the fourth successive half year, by 58% to approximately A$8.7 million

Strategic

   --      Partnership with www.gilt.com launched and progressing as planned 

-- New partnership, with a global online retailer, started in test phase, which will open a strong inventory pipeline and expand product selection

-- Integration of Identity Direct, acquired in Q4, progressing well and performing in line with expectations

Outlook

-- Board confident in prospects for the current year, to 30 June 2018, with revenue growth of 15-20% anticipated and underlying EBITDA in line with market forecasts of A$11.5 - 11.8 million

Carl Jackson, Chief Executive Officer commented;

"We are very pleased with the group's progress during the year and the improved financial performance, which delivered significantly increased underlying EBITDA, in line with market forecasts. Sustained focus on our strategic goals has delivered another year of growing revenue and, more importantly, increasing profitability.

"The momentum carried into FY18 is strong and we have a number of exciting strategic initiatives that will support the continued growth in revenue and profitability.

"Our new partnership with another global online retailer is an endorsement of the strength and quality of our international platform and demonstrates further progress in our strategy of working with global brands and retailers. "

(1) Online: the group's online web-based retail activities (A$240 million of total group revenue A$268 million)

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

All figures subject to audit

Enquiries:

 
 MySale Group plc 
 Carl Jackson, Chief Executive Officer           [phone] 
 Graeme Burns, Corporate Development Director    [phone] 
 
 
 Zeus Capital Limited (Nominated Adviser 
  & Joint Broker)                                [phone] 
 Giles Balleny, Corporate Finance 
  Benjamin Robertson, Corporate Broking 
 
 N+1 Singer (Joint Broker)                       [phone] 
 Mark Taylor 
 
 Maitland                                        [phone] 
 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 and Identity Direct in Australia and New Zealand.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 26, 2017 02:01 ET (06:01 GMT)