It has been a busy year for Australian 'flash sales' company MySale (MYSL). Before completing its London IPO in June, the members-only retailer expanded its global reach by hiring staff, opening new facilities around the world, developing relationships with key suppliers and entering new markets.
Perhaps most interestingly, MySale signed two important partnerships with Arcadia Group - the owner of TopShop, Burton and Bhs - and Sports Direct (SPD), which have taken stakes of 22 per cent and 4.8 per cent in the company respectively. And MySale has itself been stake-building. This week it snapped up 60 per cent of Danish flash sale website invitetobuy.dk, giving it a toehold in Scandinavia.
As for last year's performance, sales jumped as member numbers grew 51 per cent to 12.5m. The reported pre-tax profit figure was skewed by A$10m (£5.6m) of listing costs and a A$51m paper loss on preference shares, linked to the restructuring of the balance sheet. House broker Zeus Capital reckons that economies of scale will in time allow MySale to achieve 'normal' cash profit margins closer to 10 per cent, compared with 3 per cent last year, but that could take five years. The broker expects pre-tax profits of A$12.2m this financial year.
| MYSALE (MYSL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 222p | MARKET VALUE: | £334m | |
| TOUCH: | 220-224p | 12-MONTH HIGH: | 239p | LOW: 166p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 57A¢* | NET CASH: | A$75.5m | |
| Year to 30 Jun | Turnover (A$m) | Pre-tax profit (A$m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 57.0 | -17.1 | -24.7 | na |
| 2012** | 112.2 | -8.1 | -9.9 | na |
| 2013** | 161.6 | 5.8 | 4.6 | na |
| 2014 | 199.6 | -62.1 | -58.3 | nil |
| % change | +24 | - | - | - |
Ex-div: na Payment: na £1=A$1.80 *Includes intangible assets of A$22.4m or 15A¢ a share **Pre-IPO figures and 2013 EPS calculated pro-forma | ||||
