Online retailer MySale (MYSL:AIM) says underlying EBITDA for the year ‘will be at least at the top end of market expectations’ as it swaggers in with record first half sales and profitability, news that sends shares in the AIM-listed business up 3.2% to 113.25p.
MySale, whose shareholders include controversial retail titan Philip Green as well as Mike Ashley’s Sports Direct International (SPD), is proving it is anything but a flash in the pan. It is a clear beneficiary of the retail channel shift online, with large brands increasingly using its technology platform to shift their products at a discount.
FLASHY PERFORMER
Click here to spin through interim results from MySale, a running Shares Great Idea, which operates online flash-sales and retail websites in Australia, New Zealand, South East Asia and the UK.
For the uninitiated, flash sales are time-limited sales events in which fashion, beauty and homeware products are offered to a closed member base.
Customers get access to leading brands at low prices, while firms have an avenue to dispose of excess stock at a discount.
MySale also reports underlying EBITDA up 80% to a record A$5.5m and a welcome 200 basis points improvement in gross margin to 30.1%; this marks a sixth half of gross margin gains on the spin.
Buoyed by this record first half, MySale’s management team is ‘confident in the group's strategic progress’ and notwithstanding ongoing investment in technology and acquiring new customers, ‘anticipates that underlying EBITDA for the year will be at least at the top end of market expectations.’
ACTION JACKSON
‘This strong performance has been driven by our technology platform, which continues to enhance both our customer offer and relationships with our global brand partners,’ purrs CEO Carl Jackson, also highlighting 12% year-on-year growth in total active customer numbers to 1m.
SUCCESSFUL STRATEGIC TIE-UPS
Besides the rollout of new features on MySale’s technology platform, growth is being driven by new and existing international and local strategic partnerships which have continued to broaden the product range.
Strategic partnerships have been established with retailers including sporting goods giant Sports Direct and US-based online retailer gilt.com, part of Hudson’s Bay. Jackson remains on the lookout for additional tie-ups.
‘Our growth strategy remains focused on harnessing our proprietary platform to scale up our proposition globally. We have made significant progress over the half, particularly in increasing our product range whilst further developing our proprietary financial services and subscription delivery propositions, Ourpay and Ourpay Select’, continues Jackson.
‘It has been a great start to the new financial year and we approach the second half with confidence, with an exciting range of strategic opportunities ahead.'
