MySale Group plc (LON:MYSL) the leading international online retailer, has today provided a trading update for the six months to 31 December 2017.
· Underlying EBITDA grew 80% to a record A$5.5 million (H1 FY17: A$3.0 million)
· Gross Profit increased 19% to c. A$45.7 million (H1 FY17: A$38.4 million)
· Gross Margin increased 200 bps to 30.1% (H1 FY17: 28.1%)
· Revenue increased 11% to c. A$152.0 million (H1 FY17: A$136.7 million)
· Guidance for full year of underlying EBITDA at least at the top end of market expectations
Total active customer numbers grew by 12% and the rollout of new features on the group’s marketplace platform combined with new international and local strategic partnerships has continued to increase the product range on a low risk third party basis.
The group’s proprietary ‘buy-now, pay-later’ solution, Ourpay, now accounts for 18% of orders and has improved AOV and conversion rates. We are exploring how we might further commercialise this product by working with third party retailers.
For the sixth consecutive half year gross margins increased and a 200bp improvement contributed to the 19% uplift in gross profit to A$45.7 million (H1 FY17: A$38.4 million). The group’s sourcing initiatives, including increased own-buy inventory are key drivers of the continuing increase in margin.
This strong first half performance means underlying EBITDA will be significantly higher, by 80%, than the prior year at c. A$5.5 million (H1 FY17: A$3.0 million).
The Board is very confident in current year prospects and notwithstanding continued investment into customer acquisition, technology and service anticipates underlying EBITDA for the year will be at least at the top end of market expectations.
Carl Jackson, Chief Executive Officer commented:
”We have had a record first half with the growth in underlying EBITDA of 80% underpinned by double digit online revenue growth and robust gross margins.
”In parallel we continued to make excellent progress scaling the product range available to customers within our marketplace platform whilst also developing further our proprietary financial services and subscription delivery propositions, Ourpay and Ourpay Select.
”We have made a great start to the year and approach the second half with confidence and with an exciting range of strategic options ahead”