5th Dec 2019 12:24
(Alliance News) - MySale Group PLC said Thursday it has experienced a difficult year resulting in a "disappointing financial performance".
The Australia and New Zealand-focused online retailer said revenue for the year to June 30 fell to AUD208.6 million, around GBP108.4 million, from AUD292.2 million in comparable period a year ago.
My Sale reported a widened pretax loss of AUD58.2 million from AUD3.7 million a year ago.
The company said the "disappointing" performance was primarily due to the disruption caused by the changes in goods and services tax in Australia amplified by the business being overly focused on expanding in the UK and increasing its investment in own-buy inventory.
As a result, the company have closed its UK and US operations reducing its cost base and refocused the business on becoming an Inventory Light Marketplace Platform, distributing third party domestic and international inventory to its core Australia and New Zealand customer base.
The company also said it has raised AUD23.3 million to repay and restructure existing bank facilities, leaving the group cash positive and debt free in September.
Carl Jackson, chief executive officer, said: "It has been a difficult year for MySale during which we faced a series of significant challenges which resulted in a disappointing financial performance for the group. We have now implemented the necessary changes to rebuild from a strengthened platform."
"With a new organizational structure, an improved business model and operating on a debt free basis, the group is now primed to deliver value moving forwards," Jackson said.
MySale shares were up 1.9% in London at 3.59 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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