Carl Jackson, Chief Executive Officer MySale Group plc LON:MYSL, commented : ”We have had a very good year in FY16 and saw improved performance throughout the business. This continued improvement was driven by the team’s clear focus on improving gross margins whilst still providing exceptional value to customers which in turn was supported by the group’s proven digital marketing activity and continued technology investment.
”Our active customer base returned to growth in the second half of the year, core customer metrics remained robust, average order value increased and both revenue growth and margin improvement accelerated in the second half of the year, delivering full year performance ahead of expectations, despite some currency headwinds during the year. We have now grown our underlying EBITDA in each of the last three half year periods.
”All three group territories have seen increases in revenue and gross profit. However it is in South-East Asia and in the United Kingdom, where we trade predominantly as Cocosa, that the Group has seen the most significant rates of growth. Our strategy for these, newer, territories has been firstly to grow the active member base and then to build profitability.
”In FY16 we achieved significantly improved operational performance and solid progress against our strategic aims. We built on a solid first half with further improvements in the second half and our challenge now is to build further on that momentum and execute on the real and exciting opportunities the group has to significantly grow the business.
”The new strategic partnership with Sports Direct is testimony to the capabilities we have to offer large retail partners and alliances such as this will provide further catalyst to our growth plans.
”The group’s diversified international operations should be well insulated from any uncertainty associated with the United Kingdom’s prospective exit from the EU and in the immediate term the Group will experience some benefit from a weaker GBP Sterling exchange rate. Additionally, our core customer offer of compelling, discounted value in branded products should be highly relevant for consumers in tightening economic conditions.
”We have seen an encouraging start to the current financial year with performance ahead of our expectations and, although the key trading period still lies ahead, the board is confident in the group’s prospects for the year.
MySale Group plc (AIM: MYSL), the leading international online retailer, this morning announced its audited preliminary results for the year to 30 June 2016.
Financial highlights
· Revenue growth of 7% to A$252.3 million (2015: A$235.9 million) for the full year with an accelerating trend in H2 (+10%)
· Strong gross profit growth of 21%, driven by 300bp margin improvement to 26.4%, also accelerating through the year
· Performance building well in the target growth territories:
o South-East Asia1 20% revenue growth; gross profit +117%
o United Kingdom 139% revenue growth; gross profit +133%
· Total overheads reduced, in line with plan, to 24% of revenue (2015: 27%)
· Operational leverage driving underlying EBITDA2up to A$5.5 million (2015: EBITDA loss -A$9.5 million)
· Strong balance sheet with cash balance of A$34.0 million
· The good trading momentum has continued – performance above expectations so far in the current year
Operational highlights
· Focus on improving gross margins and activating customers with higher lifetime-value
o Average order value increased 20% to A$90 (2015: A$75)
o Average revenue per active customer increased 9% to A$302 (2015: A$276)
· Further growth in mobile which now represents 58% of orders (2015: 56%) with over 6.7 million mobile apps downloaded
· Active customer numbers returned to growth in H2
· Returns rate remains at industry leading levels of only 5%
· Increase in sales from own-buy inventory to circa 15% (2015: 10%) in-line with strategic plan to grow gross margin
· Technology improvements including; enhanced search functionality across the platform to drive customer engagement; and more efficient logistics to reduce unit costs
· Acquisition of an Australian online retail business was integrated prior to the year end and anticipated to drive marketplace revenues in current and future years.
· After the year end, a partnership with Sports Direct has been launched in Australia.
