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Half year trading update
MYSALE (AIM: MYSL), a leading international online retailer, today provides a trading update for the six-month period to 31 December 2021 ("H1 FY22").
Gross Merchandise Value ("GMV"), increased 36% to A$86.7m (A$63.8 H1 FY21), reflecting progress in scaling the Group's off-price marketplace platform, which is expected to become the Group's largest sales channel, underpinned by the higher margin own-stock channel. As a result of the changing sales mix and growth of the marketplace channel total revenues declined by 6% to $59.7m (A$63.8m H1 FY21).
Gross profit was A$24.9m (A$24.1m H1 FY21), with gross margins improving to 41.8%, an increase of 370 basis points (38.1% H1 FY21). However, supply chain volatility in Q2 impacted on broader profitability, with Underlying EBITDA* of A$1.0m ($2.5m H1 FY21).
· Turnover of approximately US$34.2 million, without any consistent contribution from the Louisiana assets
· Average Group production of 2,473 boepd (2020: 2,714 boepd) with no material contribution from Louisiana
· Estimated adjusted EBITDA in Argentina of US$9.5 million (calculated on the basis of Group financial reporting)
· US$14.5 million of free cash generation from operations (after workovers) and treasury income
Financial and operational overview
· Unaudited Group revenues increased by 13.7% (£10.4m) to £85.7m (H1 FY21: £75.4m)
· Salter performing well and in line with plan following its acquisition in July, and is expected to be significantly earnings enhancing in FY22
· Supermarkets will potentially surpass discounters as the Group's largest channel in FY22, driven by strong organic growth and the Salter acquisition
· Recently opened new distribution centre capacity in the Netherlands in partnership with a longstanding third party provider; will assist the European roll out of the Group's online business, in line with its previously stated objective of growing revenues via this channel to 30% of total revenues over the medium to long-term
· Supply chain challenges remain heightened, but have recently shown signs of improvement
Highlights
· Agreement with Conduit and SGSC to acquire a 5% economic interest for a total consideration of £1.88 million, to be settled in new Cizzle ordinary shares at a price of 4.0p per share, a 56.9% premium to the closing mid-market price on 11 February 2022
· The Agreement is in addition to the Company's existing interest in AZD 1656 as announced on 20 September 2021
· SGSC recently reported the successful completion of the AZD 1656 ARCADIA clinical trial in Covid-19 and SGSC and Conduit are in discussions with multiple pharmaceutical companies about licensing opportunities for AZD 1656 for Covid-19 and potentially for further indications
· The Agreement supports the Company's ambitions to expand its target customer base into the pharmaceutical industry and is in line with its strategy of building a portfolio of early cancer detection tests, companion diagnostics and royalty bearing stakes in significant drug assets
Launch of STRiVE project
Respiratory viral strains suitable for challenge agents being collected from consenting volunteers