MySale Group plc (LON:MYSL), a leading international online retailer, has provided a trading update for the six-month period to 31 December 2020.
Positive trading momentum continued in the first half of our financial year, with the Group making good progress in executing its “ANZ First” strategy to simplify and refocus the business.
Group EBITDA for the half year is trading ahead of management expectations at A$2.5m, an improvement of A$6,1m from the A$3.6m loss in the prior year period. Group revenues were A$63.3m (a 14% increase on the prior year period, excluding discontinued channels), reflecting the changes made to the Group’s operating model and increasing focus on its “ANZ First” strategy and inventory light marketplace platform. Gross margins have continued to improve, increasing to 37.9% (FY20 H1 34.0%) with ongoing focus on operating and overhead costs, allowing the business to deliver strong operational leverage.
The Group cash balance at 31 December 2020 was A$15.8m and the Group continues to operate on a debt free basis.
The Group has continued to make significant progress with its operational KPIs, increasing the number of monthly new brand partners during the period by 31%, underpinned by a 45% increase from US, UK and European partners, and providing them with a valuable counter seasonal platform solution.
Looking forward, whilst the impact of the COVID-19 pandemic in ANZ has not been as severe as in other countries, the broader consumer and economic outlook remains uncertain. Notwithstanding this uncertainty, the Group has a robust balance sheet and is operating on a cash generative and debt free basis, with a strong underlying cash position. Furthermore, the Board is confident that the Group will continue to make progress executing its strategy over the second half of the year.
Carl Jackson, CEO of MySale, commented:
“We have made excellent progress in the last six months and are beginning to see the benefits of our “ANZ First” strategy come through. The Board remains very confident about the Group’s attractive positioning as an off-price specialist, with a clear customer offering built around MYSALE Solutions.
We remain focussed on executing our strategy and scaling the number of brand partners we work with on the platform, as well as selectively increasing the amount of high margin, own stock inventory by adopting a disciplined test and repeat strategy.”
Update on AGM resolution 7
The Board notes that at the Group’s AGM in December, resolution 7, relating to the authority to issue shares for cash on a non-pre-emptive basis, did not pass the 75% threshold required for a special resolution. The Board is committed to engaging with the relevant shareholders to fully understand their perspective.