30 Mar 2021 07:00
MySale Group plc
("MySale" or "the Group'')
Half Year Results
First half ahead of management expectations, confident of further progress in H2
FY21 EBITDA expected to be significantly ahead of market expectations
MySale Group plc (AIM: MYSL), the leading international online retailer, today announces its unaudited interim results for the six months to 31 December 2020 (H1 FY21).
Carl Jackson, Chief Executive Officer of MySale, commented.
"We have made excellent progress in the last six months reflected by the successful ongoing execution of our ANZ First Strategy, which is flowing through into the financial results.
"We have returned the business to profitability, with Group EBITDA for the half year trading ahead of management expectations at A$2.5m, an improvement of A$5.6m from the A$3.1m loss in the prior year period, with full year Group EBITDA expectations now significantly ahead of market expectations."
Financial Overview
· Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m)
· Core Revenue* for H1 up 15% to A$61.3m (H1 FY20: A$52.1m)
· Group cost base reduced by 21% to A$21.7m (H1 FY20: A$27.4m)
· Net cash balance of A$15.8m (H1 FY20: A$7.3m)
· Return to profitability with EBITDA of A$2.5m (H1 FY20: A$3.1m loss), ahead of management expectations
Operational Overview
· Continued improvement in gross margin to 38% (H1 FY20: 34%), driven by better quality revenues and cost base reductions
· Successful scaling of own stock channel, now representing 11% of Core Revenue
· A$9.3m investment from entities associated with the founders and former CEO of Catch.com.au
Current trading and outlook
· Current trading has continued to be profitable with Group EBITDA expected to be significantly ahead of expectations
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*Core Revenue: All Group revenues excluding revenue from legacy inventory
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
Enquiries:
MySale Group plc |
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Carl Jackson, Chief Executive Officer Mats Weiss, Chief Financial and Operating Officer | +61 (0) 414 817 843 +61 (0) 403 810 762 |
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N+1 Singer (Nominated Adviser and Joint Broker) | +44 (0) 20 7496 3000 |
Mark Taylor Justin McKeegan Carlo Spingardi |
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Zeus Capital (Joint Broker) Daniel Harris/ James Hornigold, Corporate Finance John Goold, Corporate Broking | +44 (0) 20 3829 5000 |
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MHP Communications (Financial PR Adviser) | +44 (0) 20 3128 8788 |
Simon Hockridge Giles Robinson Pete Lambie |
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About MySale
MySale is a leading international online retailer with established retail websites in Australia, New Zealand and South-East Asia. Founded in 2007, the Group provides customers with access to outstanding brands and products at discounted prices whilst simultaneously providing brand partners with unique international inventory and sales solutions.
The Group operates an Inventory Light Marketplace Platform in ANZ and SE Asia for domestic and international brands with MySale Solutions providing three key service pillars: Technology, Operations and Data. MySale's core product categories are womenswear, menswear, footwear, sports, health & beauty, homewares, technology and personalised gifts. Customers' shopping experiences are enhanced by the Group's deployment of leading edge technology to ensure personalised and localised product offerings.
The Group operates 12 websites in five countries; OzSale, BuyInvite, DealsDirect, OO, Top Buy and IdentityDirect in Australia; NzSale, Buyinvite and IdentityDirect in New Zealand; SingSale in Singapore, and MySale in Malaysia and Hong Kong.
Chairman's statement
MySale has continued to successfully build upon the solid foundations put down as part of its restructure to an inventory light market place platform focused firmly on the ANZ market.
A key area of the restructure has been to focus on better quality revenue, which has meant being much stricter on which third-party sellers can trade on the platform and being more selective over what stock is purchased. This in turn has led to better quality products on the website and a significant improvement in customer satisfaction scoring, which should lead to improved customer retention and repeat purchase rates going forward. From a financial perspective, this has led to a 12% improvement in gross margin to 38% (H1 FY20: 34%).
The cost to service customers has fallen during the period due to technology efficiencies and the inventory light model utilising less infrastructure and a lower net cost of distribution. The cost base has fallen by 21% to A$21.7m (H1 FY20: A$27.4m) and this represented 34% of sales during the period.
Whilst Group Total Revenue reduced by 11%, Core Revenue (which excludes sale of legacy stock) increased by 15% on the prior period. When combined with the reduced cost base and increased gross margin, this led to underlying EBITDA of A$2.5m for the period; a significant improvement on H1 last year, which was a loss of A$3.1m.
The ANZ region has managed the COVID-19 pandemic very well and has largely been insulated by putting in place very strict border controls at an early stage, meaning that the region is almost back to operating as it did pre-pandemic. There are however still strict border controls in place, which will continue to negatively affect freight in and out of the region for the short term. When these restrictions start to ease we believe the MySale platform is well placed to benefit further and continue to drive growth from both domestic and international suppliers, while increasing market share in what is a significant and fast growing ANZ e-commerce market.
Operational review
H1 Trading
Although Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m), Core Revenue (when excluding legacy stock) grew by 15% in the period to A$61.3m (H1 FY20: A$53.1m).
Gross margins have continued to improve, increasing to 38% (H1 FY20: 34%) as we continue to drive better quality revenue through our inventory light platform. The Group's cost base has reduced by 21% to A$21.7m (H1 FY20: A$27.4m) representing 34% of Total Revenue (H1 FY20: 39%), allowing the business to start to deliver increased operational leverage.
During the period the Group raised A$9.3m from entities associated with the founders and former CEO of Catch.com.au, one of Australia's most successful online retailers.
The Group continues to operate on a profitable and bank debt-free basis, with a net cash balance of A$15.8m as of 31 December 2020 (H1 FY20: A$7.3m).
Current Trading & Outlook
Trading for the first two months of Q3 has continued to be profitable, with Core Revenue and gross profit significantly ahead of the prior year, underpinned by robust margins and a right sized, more flexible cost base.
The Board expects Group revenue for the financial year to 30 June 2021 to be in line with previous guidance, with Group underlying EBITDA expected to be significantly ahead of market expectations.
ANZ First Strategy
We are pleased with the excellent progress we are making with our ANZ First Strategy. During the period, 88% of Core Revenue was from third-party sellers on our proprietary Inventory Light Marketplace platform. During the period, we had 1,026 active third-party partners. This number has continued to grow in the first two months of Q3, underpinned by over 90 active marketplace sellers with significant continued momentum expected for the reminder of the financial year.
In parallel, we continue to successfully scale our high margin own stock channel, adopting a selective, breadth not depth "test and repeat strategy". The new own stock channel revenue was A$7m, representing 11% of Total Revenue (H1 FY20: Nil) and it is expected that this will continue to increase to approximately 20% of Total Revenue for FY21.
Our UK and US teams are taking advantage of the significant counter seasonal inventory opportunities as we continue to scale the number of international partners and high margin own stock. Whilst there are significant supply side opportunities, there remain challenges with international freight costs due to the COVID-19 pandemic.
The Australian online retail market is estimated to reach A$47.3 billion** by 2024, growing in excess of 20% per annum. The Board remains confident about the Group's attractive positioning as an off-price specialist, with a clear proposition built around MYSALE Solutions, our proprietary technology platform. Our ambition remains to be the largest off-price marketplace for branded fashion, beauty and home in ANZ taking advantage of the continued strengthening ANZ off-price channel.
Review of dual listing
Further to the announcement as part of our full year results on 26 November 2020, the Group has now progressed its review of a potential dual listing on the Australian Securities Exchange (ASX). The Board continues to believe that aligning the Group's operations with its listing location in parallel with its existing trading on AIM, is in the best interests of all shareholders. Lead advisors have been appointed. No formal decision has yet been made on whether to proceed, however, if a dual listing onto the ASX is pursued, it would likely occur in FY22. The Group will keep investors updated of any material developments.
_____________________________
Carl Jackson
Chief Executive Officer
30 March 2021
* Core Revenue: Revenues excluding revenue from legacy inventory
** Euromonitor International - Retailing in Australia
Financial review by the Chief Financial Officer
Financial Key Performance Indicators
A$ million |
| H1 FY21 |
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| H1 FY20 |
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| Change |
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Group Total Revenue |
| 63.8 |
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| 71.9 |
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| -11% |
ANZ |
| 60.4 |
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| 64.5 |
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| -6% |
S-E Asia |
| 3.4 |
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| 7.4 |
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| -54% |
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Core Revenue Excluding Legacy Stock (Geographical) |
| 61.3 |
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| 53.1 |
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| 15% |
ANZ |
| 58.1 |
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| 48.1 |
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| 21% |
S-E Asia |
| 3.2 |
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| 5.0 |
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| -36% |
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Core Revenue Excluding Legacy Stock (Product Type) |
| 61.3 |
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| 53.1 |
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| 15% |
Third-Party Suppliers |
| 54.3 |
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| 53.1 |
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| 2% |
New Own Stock |
| 7.0 |
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| 0.0 |
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| - |
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Gross Profit % |
| 38% |
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| 34% |
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| 12% |
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Statutory Result Before Tax |
| -1.0 |
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| -3.6 |
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| +2.6m |
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Underlying EBITDA |
| 2.5 |
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| -3.1 |
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| +5.6m |
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Cash |
| 15.8 |
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| 7.3 |
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| 116% |
Revenue
Whilst Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m), Core Revenue when excluding legacy stock grew by 15% to A$61.3m (H1 FY20: A$53.1m).
The Group has continued to focus on its activities and opportunities in the ANZ region, through its ANZ First strategy. This strategy aims to optimise the Group's significant scale, resources and market position in this region. This focus on ANZ resulted in Core Revenue growth of 21%, which was partially offset by an expected revenue decline in South-East Asia.
Our revenue focus is on sales through the inventory light platform, consisting of third-party sellers and selective high margin, fast turnaround own stock. Sales of legacy stock in the period reduced significantly to A$2.5m (H1 FY20: A$18.8m) as this remaining stock is cleared for cash.
Gross Margins
During the first half of FY21, gross profit margins have strengthened by 12% to 38% (H1 FY20: 34%). The focus on the higher quality revenue from third-party suppliers alongside the growth of our in-stock model has significantly contributed to driving the improved gross profit margin.
Administrative Expenses
The Group's fixed cost base reduced by 16% to A$6.5m (H1 FY20: A$7.7m) and variable costs reduced by 23% to A$15.2m (H1 FY20: A$19.7m). Overall cost base as a percentage of Group Total Revenue declined from 38% in H1 FY20 to 34% in H1 FY21.
The Group now has a reduced, right sized, more flexible cost base enabling it to benefit from operational gearing as revenues grow.
A$ million | H1 FY21 | H1 FY20 | Change |
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Expenses as per Financials |
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Selling and distribution expenses | 16.3 | 20.4 | (20%) |
Administration expenses | 9.2 | 12.3 | (25%) |
Impairment of receivables | 0.2 | 0.2 | 0% |
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Less depreciation & amortisation | -3.6 | -3.6 | 0% |
Less one-off costs & discontinued activities | -0.4 | -1.9 | (80%) |
Less share based payments | 0.0 | 0.0 | - |
Total underlying expenses per financials | 21.7 | 27.4 | (21%) |
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Fixed expenses |
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Staff Costs | 5.1 | 6.3 | (19%) |
Financial | 0.8 | 0.8 | 0% |
Occupancy | 0.6 | 0.6 | 0% |
Total fixed expenses | 6.5 | 7.7 | (16%) |
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Variable expenses |
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Delivery to customer expenses | 5.9 | 8.6 | (31%) |
Staff costs | 3.2 | 4.8 | (33%) |
Marketing | 5.0 | 5.1 | (2%) |
Financial (merchant fees) | 1.1 | 1.2 | (8%) |
Other | 0.0 | 0.0 | - |
Total variable expenses | 15.2 | 19.7 | (23%) |
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Total underlying expenses (fixed and variable) | 21.7 | 27.4 | (21%) |
Balance Sheet, Cash and Working Capital
The Group's closing cash balance was A$15.8m (H1 FY20: A$7.3m) and the Group now operates on a debt-free basis.
In October 2020 the company raised an additional A$9.3m from entities associated with both founders as well as the former CEO of Catch.com.au, who successfully built Catch.com.au into one of Australia's most successful online retail marketplaces.
The total inventory balance has reduced to A$2.6m at period end (H1 FY20: A$2.8m).
Capital expenditure decreased significantly, as planned, to A$0.7m (H1 FY20: A$1.3m) as the efficiency of the proprietary technology platform continues to improve.
Underlying EBITDA
As noted above, the Group manages its operations by looking at the underlying EBITDA which excludes the impact of a number of one-off and non-cash items of a non-trading nature. This, in the Board's opinion, provides a more representative measure of the Group's performance. A reconciliation between reported profit before tax and underlying EBITDA is included in note 5 to the financial statements and outlined below.
A$ million | H1 FY21 | H1 FY20 | Change |
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Reported EBITDA | 2.7 | 0.2 | 1250% |
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Share based payments | 0 | 0 | - |
One-off costs & discontinued activities | 0.4 | 1.9 | (80%) |
Unrealised foreign exchange loss | -0.6 | 2.5 | (124%) |
Debt forgiveness | 0 | -7.7 | (100%) |
| -0.2 | -3.3 | (93%) |
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Underlying EBITDA | 2.5 | -3.1 | +5.6m |
Depreciation & Amortisation | 3.6 | 3.6 | 0% |
Net interest expense | 0.1 | 0.2 | (60%) |
Underlying loss before tax | -1.2 | -6.9 | (83%) |
Included within one-off items are items of a non-trading, non-recurring nature, including reorganisation costs, termination charges and other costs associated with the action plan described above.
Unrealised foreign exchange loss relates to the revaluation of foreign currency balance sheet items at period end. The significant balance in the prior period is attributed to the Australian dollar, the Group's functional and presentation currency, weakening against the Group's key trading currencies during the period.
_____________________________
Mats Weiss
Chief Financial Officer
30 March 2021
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The above statements of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
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Balance sheets As at 31 December 2020
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The above balance sheets should be read in conjunction with the accompanying notes.
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| Share premium |
| Other |
| Accumulated |
| Non-controlling |
| Total equity |
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| account |
| reserves |
| losses |
| interest |
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Audited year ended 30 June |
| A$'000 |
| A$'000 |
| A$'000 |
| A$'000 |
| A$'000 |
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Balance at 1 July 2019 |
| 306,363 |
| (123,125) |
| (179,130) |
| (20) |
| 4,088 |
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Loss after income tax benefit/(expense) for the period |
| - |
| - |
| (3,561) |
| - |
| (3,561) |
Other comprehensive income for the period, net of tax |
| - |
| (2,125) |
| - |
| - |
| (5,686) |
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Total comprehensive income for the period |
| - |
| (2,125) |
| (3,561) |
| - |
| (5,686) |
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Transactions with owners in their capacity as owners: |
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Issue of ordinary shares, net of transaction costs (note 12) |
| 22,608 |
| - |
| - |
| - |
| 22,608 |
Share-based payments |
| - |
| 271 |
| - |
| - |
| 271 |
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Balance at 30 June 2020 |
| 328,971 |
| (124,979) |
| (182,691) |
| (20) |
| 21,281 |
The above statements of changes in equity should be read in conjunction with the accompanying notes.
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The above statements of cash flows should be read in conjunction with the accompanying notes
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Note 1. General information
MySale Group Plc is a group consisting of MySale Group Plc (the 'Company' or 'parent entity') and its subsidiaries (the 'Group'). The financial statements of the Group, in line with the location of the majority of the Group's operations and customers, are presented in Australian dollars and generally rounded to the nearest thousand dollars.
The principal business of the Group is the operation of online shopping outlets for consumer goods like ladies, men and children's fashion clothing, accessories, beauty and homeware items.
MySale Group Plc is a public company, limited by shares, listed on the AIM (Alternative Investment Market), a sub-market of the London Stock Exchange. The Company is incorporated and registered under the Companies (Jersey) Law 1991. The Company is domiciled in Australia.
The registered office of the Company is Ogier House, The Esplanade, 44 Esplanade Street. Helier, JE4 9WG, Jersey and principal place of business is at 3/120 Old Pittwater Road, Brookvale, NSW 2100, Australia.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 March 2021.
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Note 2. Significant accounting policies
These financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with International Accounting Standards IAS 34 'Interim Financial Reporting'.
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These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the Company during the interim reporting period.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the periods presented, except for the policies stated below.
Going concern
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The consolidated financial statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least 12 months from the date of approval of these financial statements.
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As at 31 December 2020, the Group's current liabilities exceeds current assets by A$5,270,000 (30 June 2020: A$15,003,000) and the Group has incurred a loss before tax of A$1,024,000 (at 31 December 2019: A$3,687,000) and generated operating cash outflow of A$315,000 (at 31 December 2019: A$4,261,000 inflow). | ||||||||
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The uncertainty as to the future impact on the Group of the COVID-19 pandemic has been considered as part of the Group's adoption of the going concern basis. Although a number of COVID-19 restrictions in Australia have eased after the reporting period, the Directors continue to monitor developments and the potential impact of any new measures imposed due to COVID-19 on the operational and financial risks of the Group.
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The Directors have prepared cash flow forecasts covering a period to 31 March 2022. This assessment has included consideration of the forecast performance of the business for the foreseeable future and the cash available to the Group. In preparing these forecasts, the Directors have considered a number of detailed sensitivities, including a worst case scenario considering the potential impact of Covid-19.
If revenue were to fall in line with the worst case model, the Group would take further remedial action to counter the reduction in profit and cash through a cost cutting exercise that would include staff redundancies and general cost control measures.
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Included in the Group's current liabilities is balance for contract liabilities (non-cash liabilities) of A$6,421,000. Excluding this the Group's current assets exceed current liabilities by A$1,151,000.
Additionally, the Group has a proven track record of raising capital to assist with cash flow needs as and when required.
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Based on current trading, the worst case scenario is considered unlikely. However, it is difficult to predict the overall impact and outcome of COVID-19 at this stage, particularly if the second wave continues in to 2021. Nevertheless, after making enquiries, and considering the uncertainties described above, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the interim report and accounts.
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Note 3. Operating segments
Identification of reportable operating segments
The Group's operating segments are determined based on the internal reports that are reviewed and used by the Board of Directors (being the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.
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The CODM reviews revenue and gross profit by reportable segments, being geographical regions. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in these financial statements.
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The Group operates separate websites in each country that it sells goods in. Revenue from external customers is attributed to each country based on the activity on that country's website. Similar types of goods are sold in all segments. The Group's operations are unaffected by seasonality.
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Intersegment transactions
Intersegment transactions were made at market rates and are eliminated on consolidation.
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Operating segment information
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Note 4. Other operating gain, net
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* In September 2019, the Group finalised a share placement for A$23,329,000. Net proceeds after considering the share issue costs of A$721,000 was A$22,608,000. The total number of new shares issued under the placement was 640,376,083 bringing the total shares on issue to 794,707,735. As part of the share placement, the Group agreed with its financier Hong Kong and Shanghai Banking Corporation Plc ('HSBC') to extinguish all borrowing facilities, Corporate Guarantees and Indemnities with a repayment of A$10,914,000 in September 2019. As part of this repayment HSBC agreed to provide the Group with a debt forgiveness amount of A$7,723,000.
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Note 5. EBITDA reconciliation (earnings before interest, taxation, depreciation and amortisation)
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Note 6. Current assets - cash and cash equivalents
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Note 7. Current assets - trade and other receivables
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Trade receivables include uncleared cash receipts due from online customers which amounted to A$1,858,000 (30 June 2020: A$2,261,000 and 31 December 2019: A$3,039,000).
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Allowance for expected credit losses
The Group has recognised a loss of [A$nil] (30 June 2020: A$2,262,000 recovered and 31 December 2019: a loss of A$208,000) in profit or loss in respect of impairment of receivables for the half-year ended 31 December 2020.
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Note 8. Non-current assets - right-of-use assets
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The Group leases buildings for its offices, warehouses and retail outlets under agreements of between one to five years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
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The Group leases office equipment under agreements of less than one year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.
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Note 9. Non-current assets - intangibles
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Note 10. Current liabilities - trade and other payables
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Note 11. Current liabilities - contract liabilities
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Unsatisfied performance obligationsThe aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the reporting period was A$6,421,000 as at 31 December 2020 (A$8,912,000 as at 31 December 2019 and A$6,186 as at 30 June 2020) and is expected to be recognised as revenue in future periods as follows:
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Contract liabilities represent the Group's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the Group recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the Group has transferred the goods or services to the customer.
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Note 12. Equity - share capital
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Movements in ordinary share capital - issued and fully paid
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Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held.
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Treasury shares
The Company has two employee share plans; (1) the Executive Incentive Plan ('EIP') and (2) the Loan Share Plan ('LSP'). In accordance with the terms of each plan 100% of the ordinary shares will vest three years from grant date subject either to the achievement of the Underlying Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') included in the Company's internal forecasts set by the Board in the year of the grant or certain share price hurdles. Share options and loan shares have been granted over the ordinary share capital of the Company and are accounted for as share-based payments. That is, the fair value of the accounting expense in relation to these options and loan shares are recognised over the vesting period.
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Vested and unvested shares under the plans are recorded as treasury shares representing a deduction against issued capital. When the loans are settled or the options exercise, the treasury shares are reclassified as ordinary shares and the equity will increase accordingly. Treasury shares have no dividend, or voting, rights.
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Note 13. Equity - share premium account
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The share premium account is used to recognise the difference between the issued share capital at nominal value and the capital received.
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In October 2020, the Company issued 85,225,129 new ordinary shares to entities associated with Gabby Leibovich, Hezi Leibovich and Nati Harpaz (together, the 'Subscription') to raise approximately £5.1m (approximately A$9.3m). The Subscription successfully built Catch.com.au into one of Australia's most successful online retailers, which included an inventory business as well as a successful marketplace which had more than two million products available for Australian consumers.
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The Company intends to use a proportion of the proceeds as capital investments in technology to expand and develop its marketplace platform. The Company has been taking advantage of inventory available around the world and the proceeds will enable further selective investment in inventory to continue to improve brand and inventory mix. The Company has been cash positive for the last six months and this additional investment of A$9.3m gives total net cash in excess of A$12m to grow the business.
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In September 2019, the Company finalised a share placement for A$23,329,000. Net proceeds after considering the share issue costs of A$721,000 was A$22,608,000. The total number of new shares issued under the placement was 640,376,083 bringing the total shares on issue to 794,707,735.
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In December 2019, the Company issued 22,533,118 ordinary shares, 4,542,614 to MySale Group Trustee Limited, in its capacity as the trustee of the MySale Group Plc Employee Benefit Trust ('EBT'), and 17,990,504 directly to those Directors and management taking part in the Loan Share Plan as part of the Company's management incentive scheme for its Directors, Non-executive Directors, and senior management. These shares, in addition to the existing 3,000,000 ordinary shares already held in the EBT, will be used to satisfy the Share Awards, subject to the performance criteria being met. Following admission of these shares the Company's total issued share capital was 817,240,853 Ordinary Shares. The total number of voting rights in the Company is 809,698,239.
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Note 14. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial period.
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Note 15. Contingent liabilities
The Group issued bank guarantees through its banker, Hong Kong, Shanghai Banking Corporation and Macquarie Bank, in respect of lease obligations amounting to A$nil (30 June 2020: A$777,000 and 31 December 2019: A$524,000).
The Group has issued a bank guarantee through its banker ANZ Bank New Zealand Limited, in respect of customs and duties obligations amounting to NZ$nil (30 June 2020: NZ$nil and 31 December 2019: NZ$150,000).
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Note 16. Related party transactions
Parent entity
MySale Group Plc is the parent company of the Group.
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Transactions with related parties
The following transactions occurred with related parties:
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Receivable from and payable to related parties The following balances are outstanding at the reporting date in relation to transactions with related parties:
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Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
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Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
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Note 17. Earnings per share
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65,985,501 (30 June 2020: 65,985,501 and 31 December 2019: 7,542,614) employee long-term incentives have been excluded from the diluted earnings calculation as they are anti-dilutive for the period.
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Note 18. Events after the reporting period
No matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
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