Investment in tech paying off for MySale

The AIM-traded firm said its gross profit had increased 19% to AUD 45.6m, while its gross margin rose 200 basis points to 30.1%.

Revenue increased 11% to AUD 151.9m.

On the technology front, MySale’s board highlighted its accelerated investment into its data-driven proprietary technology platform.

It said merchandising and planning updates were now delivering sales, margin and operational benefits, and also reported increasing uptake of its ‘Ourpay’ proprietary 'buy-now, pay-later' payments system by customers.

The company launched ‘Ourpay Select’ during the period, which it described as a subscription delivery service, enhancing its customer proposition.

Mobile activity continued to grow, the board added, representing 60% of orders.

Cumulative app downloads had reached 7.5 million.

Looking at its operations, MySale said its active customer base increased 12% to one million, with the board continuing to focus on activating customers with higher lifetime-value.

Its average order value remained stable at AUD 87, with the board also reporting a steady average order frequency per customer of 3.3x.

The company also noted its strategic plan to increase own-buy inventory had continued to 20% of online revenue, with further brand partnerships also resulting in more than 700,000 SKUs online.

Its ‘Endless Aisle’ product now accounted for 10% of online revenue, and the initial phase of the integration of ‘Identity Direct’ was now completed.

The company’s product returns rate remained at what the board called an “industry-leading level” of 5%.

“We are very pleased to be reporting a record first half performance with growth in underlying EBITDA of 80 percent underpinned by double digit online revenue growth and improved gross margins, our sixth consecutive half of gross margin gains,” said MySale chief executive Carl Jackson.

“This strong performance has been driven by our technology platform, which continues to enhance both our customer offer and relationships with our global brand partners.”

Jackson said the growth strategy remained focused on harnessing its proprietary platform to scale up its proposition globally.

“We have made significant progress over the half, particularly in increasing our product range whilst further developing our proprietary financial services and subscription delivery propositions, Ourpay and Ourpay Select.

“It has been a great start to the new financial year and we approach the second half with confidence, with an exciting range of strategic opportunities ahead.”