Online members-only retail shopping club MySale (MYSL) made significant progress in the year to June, delivering underlying cash profits of A$5.5m (£3.2m) compared with a A$9.5m loss in the previous year.
As part of its strategic plan, the group worked to secure higher lifetime-value customers, while at the same time reducing postage promotions and increasing the proportion of its own-buy inventory. This resulted in an increase in gross margins from 23 per cent to 26 per cent, while total overheads fell from 27 per cent of revenue to 24 per cent. Average revenue per customer rose 9 per cent to A$302, while the average order size was up by a fifth at A$90.
Leading the way were MySale's core markets of Australia and New Zealand, where these strategic changes boosted gross profits by 12 per cent despite exchange rate pressures. The initiatives also helped revenue in Southeast Asia grow by a fifth, with gross margins nearly doubling as the company tailored merchandising, shipping and pricing to suit local customers. Relaunched in the UK under the Cocosa brand, revenue grew strongly from A$4.2m to A$10m on the back of an increasingly active customer base.
Analysts at Zeus Capital are forecasting adjusted pre-tax profits for the year to June 2017 of A$2.3m and EPS of 1.1p (from A$1.4m and 0.7p in FY2016).
MYSALE (MYSL) | ||||
---|---|---|---|---|
ORD PRICE: | 95p | MARKET VALUE: | £144m | |
TOUCH: | 94.5-95.75p | 12-MONTH HIGH: | 97p | LOW: 37p |
DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
NET ASSET VALUE: | 51A¢* | NET CASH: | A$27.5m |
Year to 30 Jun | Turnover (A$m) | Pre-tax profit (A$m) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2012** | 112 | -8.1 | -9.9 | na |
2013** | 162 | 5.8 | 4.6 | na |
2014 | 200 | -62.1 | -58.3 | na |
2015 | 236 | -21.5 | -11.8 | nil |
2016 | 252 | 0.2 | -0.1 | nil |
% change | +7 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of A$29.8m, or 20¢ a share **Pre-IPO figures and 2013 EPS calculated pro-forma £1=A$1.69 |