MySale launches new partnership with Sports Direct after successful year

The agreement involves the launch of Sports Direct’s inventory on the firm’s Australian retail websites, which will be extended to New Zealand and South-East Asia territories once completed.

The firm’s revenue grew 7% to $252.3m for the full year.

Retail analyst Nick Bubb commented on the deal saying: “Given their recent troubles, the embattled Philip Green and Mike Ashley could do with some good news and, as they both have stakes in the Aussie-based Online “flash Sales” retailer MySale, they may find some in today’s finals, which show a continuing recovery, as reflected in the recent recovery in the share price.”

By region, revenues increased across the board, especially in South-East Asia and the UK. In South-East Asia revenue grew 20% with gross profit increasing by 117% and in the UK’s revenue grew 139% with gross profit rising by 133%.

Average order value increased 20% to AU$90 and average revenue per active customer increased 9% to AU$302. Orders from mobile devices are also on the rise making up 58% of orders with over 67m mobile apps downloaded.

The firm’s gross profit grew 21% driven by a 26.4% improvement in margin. Earnings before interest tax depreciation and amortisation rose to AU$5.5m from a loss of AU$9.5m.

Jamie Constable at N+1 Singer compares the company to boohoo after their strong recovery after their “hiccup post IPO.”

“MySale has established a very strong position in the online global off-price market, where we see a huge growth opportunity and the platform is now in place in all key markets for potentially significant profitable growth,” said Constable

The firm’s cash balance was AUD34m at 30 June 2016.

Aside from the Sports Direct deal, the firm completed three acquisitions with Australian online retail websites during the year under the domain names 'OO.com.au', 'dealsdirect.com.au'; and 'topbuy.com.au’, to allow them to reach a wider customer base and broaden their product range.

With regards to Brexit, the firm feels that its diversified international operations insulates it from the uncertainty surrounding the referendum result and that it will even benefit from the weaker sterling in the immediate term.

Chief executive Carl Jackson said: “We built on a solid first half with further improvements in the second half and our challenge now is to build further on that momentum and execute on the real and exciting opportunities the group has to significantly grow the business. The new strategic partnership with Sports Direct is testimony to the capabilities we have to offer large retail partners and alliances such as this will provide further catalyst to our growth plans.”

The share price rose 0.34% to 92.31p at 1528 BST on Wednesday.