Carl Jackson, Chief Executive Officer of MySale Group PLC LON:MYSL 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. “
MySale Group plc (AIM: MYSL) (the “group”) the leading online retailer, has given DirectorsTalk 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
