MYSL.L Regulatory News (MYSL)

25 January 2018

Trading Update - Record First Half

MySale Group plc (AIM: MYSL) (the "group") the leading international online retailer, is pleased to provide a trading update for the six months to 31 December 2017.

Highlights

· Underlying EBITDA[1] 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[2] 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"

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About MySale Group

MySale is a leading international online retailer with established online flash-sales and retail websites in Australia, New Zealand, South-East Asia and the United Kingdom. Founded in 2007, the Group provides customers with access to outstanding brands and products at discounted prices whilst simultaneously providing brand partners unique international inventory and sales solutions.

The group provides a marketplace solution to brands by offering both retail and flash-sale websites. The flash sales websites host time limited sales in each of its territories. These flash sales are focused on fashion, apparel, health, beauty and homeware categories and are predominantly undertaken on a consignment inventory basis. The retail websites operate in Australia and New Zealand and focus on similar product categories using mostly drop-shipped inventory.

Customers' shopping experiences are enhanced by the group's deployment of leading edge technology to ensure personalised and localised product offerings. Customer convenience has been at the heart of the group's technology development since the earliest days and now mobile commerce is the group's main sales channel.

The group's online sales are supported by a robust and flexible network of in-house supply chain infrastructure and technology that enables MySale to offer products from around the world for sale and delivery to customers in each territory.

As a result of these exceptional capabilities in inventory management and international sales MySale has built an enviable portfolio of over 2,500 brand partners from whom products are sourced.

The group operates websites under a number of different brands all of which operate on a uniform technology platform and a single international logistics infrastructure.

The Group's flash sales brands are; OzSale and BuyInvite in Australia; NzSale in New Zealand; SingSale in Singapore; MySale in Australia, New Zealand Malaysia, Thailand, the Philippines, the United Kingdom and Hong Kong, and Cocosa in the United Kingdom, Australia and New Zealand; whilst the Group's retail websites are Deals Direct, OO.com and Top Buy in Australia and Identity Direct in Australia and New Zealand.