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MySale shares plunge as CFO resigns and annual loss widens

MySale expects trading and underlying EBITDA in 2019 to meet market forecasts.
CFO Andrew Dingle is leaving to pursue another opportunity

Online retailer MySale Group PLC (LON:MYSL) announced on Tuesday the resignation of chief financial officer Andrew Dingle as it reported a wider annual loss, sending its shares tumbling 16% in morning trading.

Dingle, who helped lead the company through its London initial public offering in 2014, has stepped down from the board with immediate effect and will leave the group at the end of October after a handover process.

MySale, which owns retail websites in Australia, New Zealand, South-East Asia and the UK, said Dingle is leaving to pursue another opportunity and group financial controller Maarit Piisila will assume day-to-day responsibility for the finance function.

In the year to 30 June 2018, the reported loss before tax grew to A$1.7mln from A$1.6mln as it took an A$1.4mln charge related to the purchase and reorganisation of personalised product retailer Identity Direct and an A$20mln hit for abandoned acquisitions.   

“Whilst it is disappointing to incur costs on projects which do not conclude the group has identified key strategic and commercial benefits that can be derived from increasing the scale of the business and continues to evaluate acquisition opportunities,” MySale said.

Excluding one-off costs, underlying pre-tax profit increased 50% to A$4.9mln from A$3.3mln as revenue gained 9% to A$292.2mln from A$268.4mln, boosted by a 9% rise in the active customer base to one million.

Underlying earnings (EBITDA) jumped 36% to A$11.8mln from A$8.7mln last year.

READ: MySale shares jump as it sees 2018 earnings at top end of market estimates

The gross margin rose by 100 basis points to 29.3% as the company increased the proportion of its own-buy inventory, reduced delivery promotions and secured more higher lifetime-value customers.

Chief executive Carl Jackson said the customer offering was improved this year through growth of Ourpay, the proprietary 'buy-now, pay-later' platform, and the launch of delivery subscription service Select.

 "Through targeted investment, customer engagement has improved with increases in average order values, basket size and order frequency,” he said.

The company said the 2019 financial year has started in line with expectations and sees trading and underlying EBITDA meeting market forecasts.  

MySale operates 24 websites in eight countries including OzSale and BuyInvite in Australia; NzSale in New Zealand; SingSale in Singapore; MySale in Malaysia, Thailand, the Philippines, the UK and Hong Kong, and Cocosa in the UK, Australia and New Zealand. The group’s retail websites include Deals Direct, and Top Buy in Australia.

Shares were trading at 41.5p each in early deals. 

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