MySale Group “a year of significant strategic and operational progress”

MySale Group plc (LON:MYSL), the leading international online retailer, has announced its audited final results for the year to 30 June 2021.

* In the trading update announced on 21 July 2021, the figure for FY21 GMV was used in place of FY21 revenue. The audited revenue figure is presented here.

**Gross merchandise value is total sales volume transacting through the platform (retail and marketplace).

***Underlying EBITDA is calculated as EBITDA adjusted for certain items including impairment losses/reversals related to goodwill and receivables, share-based payments and unrealised foreign exchange loss/gain

Financial Highlights

·      Materially improved underlying profitability and strong operational performance with Group underlying EBITDA of A$4.2m, ahead of market expectations and an improvement of A$6.9m from the A$2.7m loss in FY20.

·      Own Stock Channel (1P) revenue of A$25m, underpinned by core revenue of A$21.6m (FY20: Nil), successfully selling through non-core revenue of A$3.4m (FY20: A$23.8m)

·      Gross profit increased to A$46.4m (FY20: A$43.9m)

·      Raised A$9.3m from entities associated with both founders as well as the former CEO of Catch.com.au.

·      Cash position of $A9.2m (FY20: A$6.7m). Debt Free.

 Progress against strategic initiatives 

·      Maintained a laser sharp focus on delivering our ANZ First Strategy, focused on the simplification of the business and developing our proprietary Marketplace Platform, offering our partners clearly differentiated solutions.

·      Exceptional progress made with scaling our off-price marketplace, with over 200 brand partners launched onto the new platform and significant new business and revenue momentum continuing into FY22.

·      Whilst we are focused on operating an Inventory Light Marketplace Platform, we also successfully scaled our own, higher margin, stock channel, providing access to brands’ inventory that may not be available through other channels.

Post financial year end

·      Recruited Kalman Polak as Chief Executive Officer, with Carl Jackson moving to role of Executive Chairman and Charles Butler moving to Senior Independent Director.

·      Further progress in scaling marketplace offering, with brand partners increasing by over 30% to over 300.

·      Recruited a new Marketplace team, based in Melbourne, with deep industry knowledge.

Current Trading and Outlook

·      Continued positive trading momentum in Q1 FY22, with GMV over 50% ahead Q1 FY21. We continue to focus on driving our marketplace offering which is expected to increase significantly in FY22, to become the Group’s largest channel underpinned by also tactically scaling the higher margin, own stock channel. The Group’s Gross profit is also approximately 15% ahead in Q1 FY22, compared to Q1, FY21.

Commenting on the results, Carl Jackson, MySale Group Executive Chairman, said:

”It has been a year of significant strategic and operational progress, with a return to underlying profitability, leaving us well positioned for strong growth in FY22 and beyond. The successful capital raise, backed by experienced industry figures, has allowed us to accelerate the transformation of the business, which is now focused on scaling our unique, off-price marketplace platform by being the partner of choice to more brands who want access to over three million buyers. For our international partners, the platform also provides a counter seasonal solution for their excess fashion inventory.

“There are a number of opportunities ahead, both in our core apparel category, but also across beauty and homewares. The appointment of Kalman Polak as CEO and a strengthened leadership team will help accelerate our progress and we are already seeing momentum continuing into the current financial year, with Gross Merchandise Value in the first quarter over 50% ahead of the prior year period. Underpinned by a right sized cost base and a positive cash position, we look forward with confidence.”