TIDMMYSL
RNS Number : 4383P
MySale Group PLC
08 February 2019
8 February 2019
Pre-close Trading Update
MySale Group plc (AIM: MYSL) ("the group"), the leading
international online retailer, today provides a trading update for
the six months to 31 December 2018.
As announced on 10 December 2018 the group experienced
challenging trading in the first half and anticipates an underlying
EBITDA loss in the first half. This is due primarily to the market
disruption caused by changes to Australian GST regulation, together
with product mix and inventory issues. Revenue has also been
impacted by the planned reduction in the group's offline activities
during FY19.
As previously outlined, actions have been taken to accelerate
the group's cost saving programme, via increased technology
platform efficiencies and rationalised operations. An improved
product mix and increased local sourcing have also been put in
place to improve gross profit margins.
Annualised cost savings in excess of A$10 million are
anticipated which, in combination with improved margins, will
result in a significantly improved performance in the second half.
The group anticipates delivering a small underlying EBITDA profit
for the full year.
Trading summary for the six months to 31 December 2018:
-- Group revenue decreased 17% to A$126 million (H1 FY18: A$152 million)
-- Online revenue decreased 13% to A$120 million (H1 FY18: A$138 million)
-- Gross profit decreased 35% to A$29.5 million (H1 FY18: A$45.6 million)
-- Gross margin reduced to 23.4% (H1 FY18 30.2%)
-- Underlying EBITDA loss of approximately A$5.0 million (H1 FY18: A$5.5 million profit)
-- Active customer numbers reduced 7% to 0.9 million
-- Customer AOV and order frequency, remained stable.
The group's cash balances grew ahead of expectations in the
period due to working capital management being better than
anticipated. The group ended the first half of the year with net
cash of A$2.7 million (H1 FY18: A$8.3 million). This was an
improvement of A$8.9 million from the A$6.2 million net debt as at
30 June 2018.
The Board is confident the group's action plans will deliver
improved performance in the second half of the financial year and
that the full year outcome will be in line with market
expectations. A further trading update shall be provided with the
release of the FY19 Interim Results in mid-March 2019.
Carl Jackson Chief Executive Officer commented;
"Whilst performance during the first half of the year has been
disappointing, we have taken immediate action to address the
issues.
"Our previous plans to streamline and automate the business have
been accelerated and these actions are already delivering results.
The changes to product strategy are materially underway and will be
completed in the second half.
"Whilst we have experienced a short-term dip in revenue and
profitability, we anticipate the actions initiated will deliver a
positive underlying EBITDA in the second half and for the full
year.
"The group has a strong balance sheet and the anticipated
improvements in working capital are being achieved and cash
balances increased. We believe the reconfigured business will be
stronger, more efficient and continue to provide a compelling
consumer offer and deliver unique solutions to our brand
partners."
Enquiries:
MySale Group plc
Carl Jackson, Chief Executive Officer +61 (0) 414 817 843
Graeme Burns, Investor Relations +44 (0) 777 585 4516
Zeus Capital Limited (Nominated Adviser
& Joint Broker) +44 (0) 20 3829 5000
Nick Cowles/Andrew Jones, Corporate Finance
Benjamin Robertson, Corporate Broking
N+1 Singer (Joint Broker) +44 (0) 20 7496 3000
Mark Taylor
MHP Communications (Financial PR Adviser) +44 (0) 20 3128 8570
Simon Hockridge
Giles Robinson
Peter Lambie
About MySale Group
MySale is a leading international online retailer with
established 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 provides a flexible marketplace solution in ANZ, SE
Asia and the UK for domestic and international brands The Group
offers a number of solutions for brands including 1P, 3P (strategic
partners, managed and self-managed). The 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 customer experience 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.
Proprietary technology innovations deployed include the Ourpay
'buy-now, pay-later' solution which has proved popular with over
130,000 customers using the solution.
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 operates 24 websites in eight countries; OzSale and
BuyInvite in Australia; NzSale in New Zealand; SingSale in
Singapore; MySale in 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.
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END
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