On release of last year’s preliminary results it was clear that MySale (MYSL) had sacrificed profitability in order to update its technology platform, thereby expanding its product offering and improving functionality for customers. The investment appears to be paying off for the online members-only shopping club. Half-year gross profit improved by a fifth to A$45.6m (£25.5m), with an accompanying 200 basis point increase in the margin to 30.1 per cent. Underlying cash profits were up 80 per cent to A$5.5m, and chief executive Carl Jackson now expects full-year returns to be at the top end of expectations.
The underlying figures were underpinned by a 12 per cent increase in the number of active online customers, which crept above the 1m mark, although the average customer spend remained broadly static at A$87. The company’s proprietary instalment payment programme – Ourpay – now accounts for 17 per cent of orders and has increased the likelihood of online purchase for users of the service, along with the average order value. MySale is considering offering it to third-party retailers.
Analysts at N+1 Singer expect pre-tax profits of A$5.3m in the year to June, giving EPS of 2.4¢, compared with A$3.3m and 2.5¢ in FY2017.
| MYSALE (MYSL) | ||||
| ORD PRICE: | 113p | MARKET VALUE: | £171m | |
| TOUCH: | 112-115p | 12-MONTH HIGH: | 122p | LOW: 94p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 51¢* | NET CASH: | A$8.3m | |
| Half-year to 31 Dec | Turnover (A$m) | Pre-tax profit (A$bn) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 137 | -1.39 | -0.23 | nil |
| 2017 | 152 | -0.13 | 0.41 | nil |
| % change | +11 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of A$36.7m, or 24¢ per share £1=A$1.78 | ||||
