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MySale Group PLC (MYSL)

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Tuesday 30 March, 2021

MySale Group PLC

Half Year Results

RNS Number : 8832T
MySale Group PLC
30 March 2021
 

MySale Group plc

("MySale" or "the Group'')

 

Half Year Results

 

First half ahead of management expectations, confident of further progress in H2

 

FY21 EBITDA expected to be  significantly ahead of market expectations

 

MySale Group plc (AIM: MYSL), the leading international online retailer, today announces its unaudited interim results for the six months to 31 December 2020 (H1 FY21).

 

Carl Jackson, Chief Executive Officer of MySale, commented.

"We have made excellent progress in the last six months reflected by the successful ongoing execution of our ANZ First Strategy, which is flowing through into the financial results.

 

"We have returned the business to profitability, with Group EBITDA for the half year trading ahead of management expectations at A$2.5m, an improvement of A$5.6m from the A$3.1m loss in the prior year period, with full year Group EBITDA expectations now significantly ahead of market expectations."

 

Financial Overview

· Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m)

· Core Revenue* for H1 up 15% to A$61.3m (H1 FY20: A$52.1m)

· Group cost base reduced by 21% to A$21.7m (H1 FY20: A$27.4m)

· Net cash balance of A$15.8m (H1 FY20: A$7.3m)

· Return to profitability with EBITDA of A$2.5m (H1 FY20: A$3.1m loss), ahead of management expectations

 

Operational Overview

· Continued improvement in gross margin to 38% (H1 FY20: 34%), driven by better quality revenues and cost base reductions

· Successful scaling of own stock channel, now representing 11% of Core Revenue

· A$9.3m investment from entities associated with the founders and former CEO of Catch.com.au

 

Current trading and outlook

· Current trading has continued to be profitable with Group EBITDA expected to be significantly ahead of expectations

.

*Core Revenue: All Group revenues excluding revenue from legacy inventory  

 

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.    Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

Enquiries :

MySale Group plc

 

Carl Jackson, Chief Executive Officer

Mats Weiss, Chief Financial and Operating Officer

+61 (0) 414 817 843

+61 (0) 403 810 762

 

 

N+1 Singer (Nominated Adviser and Joint Broker)

+44 (0) 20 7496 3000

Mark Taylor

Justin McKeegan

Carlo Spingardi

 

 

 

Zeus Capital (Joint Broker)

Daniel Harris/ James Hornigold, Corporate Finance

John Goold, Corporate Broking

+44 (0) 20 3829 5000

 

 

MHP Communications (Financial PR Adviser)

+44 (0) 20 3128 8788

Simon Hockridge

Giles Robinson

Pete Lambie

 

 

 

About MySale

 

MySale is a leading international online retailer with established retail websites in Australia, New Zealand and South-East Asia. Founded in 2007, the Group provides customers with access to outstanding brands and products at discounted prices whilst simultaneously providing brand partners with unique international inventory and sales solutions.

The Group operates an Inventory Light Marketplace Platform in ANZ and SE Asia for domestic and international brands with MySale Solutions providing three key service pillars: Technology, Operations and Data. MySale's core product categories are womenswear, menswear, footwear, sports, health & beauty, homewares, technology and personalised gifts. Customers' shopping experiences are enhanced by the Group's deployment of leading edge technology to ensure personalised and localised product offerings.

The Group operates 12 websites in five countries; OzSale, BuyInvite, DealsDirect, OO, Top Buy and IdentityDirect in Australia; NzSale, Buyinvite and IdentityDirect in New Zealand; SingSale in Singapore, and MySale in Malaysia and Hong Kong.

 

Chairman's statement

 

MySale has continued to successfully build upon the solid foundations put down as part of its restructure to an inventory light market place platform focused firmly on the ANZ market.

 

A key area of the restructure has been to focus on better quality revenue, which has meant being much stricter on which third-party sellers can trade on the platform and being more selective over what stock is purchased. This in turn has led to better quality products on the website and a significant improvement in customer satisfaction scoring, which should lead to improved customer retention and repeat purchase rates going forward. From a financial perspective, this has led to a 12% improvement in gross margin to 38% (H1 FY20: 34%).

 

The cost to service customers has fallen during the period due to technology efficiencies and the inventory light model utilising less infrastructure and a lower net cost of distribution. The cost base has fallen by 21% to A$21.7m (H1 FY20: A$27.4m) and this represented 34% of sales during the period.

 

Whilst Group Total Revenue reduced by 11%, Core Revenue (which excludes sale of legacy stock) increased by 15% on the prior period. When combined with the reduced cost base and increased gross margin, this led to underlying EBITDA of A$2.5m for the period; a significant improvement on H1 last year, which was a loss of A$3.1m.

 

The ANZ region has managed the COVID-19 pandemic very well and has largely been insulated by putting in place very strict border controls at an early stage, meaning that the region is almost back to operating as it did pre-pandemic. There are however still strict border controls in place, which will continue to negatively affect freight in and out of the region for the short term. When these restrictions start to ease we believe the MySale platform is well placed to benefit further and continue to drive growth from both domestic and international suppliers, while increasing market share in what is a significant and fast growing ANZ e-commerce market.

 

Operational review

 

H1 Trading

 

Although Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m), Core Revenue (when excluding legacy stock) grew by 15% in the period to A$61.3m (H1 FY20: A$53.1m).

 

Gross margins have continued to improve, increasing to 38% (H1 FY20: 34%) as we continue to drive better quality revenue through our inventory light platform. The Group's cost base has reduced by 21% to A$21.7m (H1 FY20: A$27.4m) representing 34% of Total Revenue (H1 FY20: 39%), allowing the business to start to deliver increased operational leverage.  

 

During the period the Group raised A$9.3m from entities associated with the founders and former CEO of Catch.com.au, one of Australia's most successful online retailers.

 

The Group continues to operate on a profitable and bank debt-free basis, with a net cash balance of A$15.8m as of 31 December 2020 (H1 FY20: A$7.3m).

 

Current Trading & Outlook

 

Trading for the first two months  of Q3 has continued to be profitable, with Core Revenue and gross profit significantly ahead of the prior year, underpinned by robust margins and a right sized, more flexible cost base.

 

The Board expects Group revenue for the financial year to 30 June 2021 to be in line with previous guidance, with Group underlying EBITDA expected to be significantly ahead of market expectations.

 

ANZ First Strategy

 

We are pleased with the excellent progress we are making with our ANZ First Strategy. During the period, 88% of Core Revenue was from third-party sellers on our proprietary Inventory Light Marketplace platform. During the period, we had 1,026 active third-party partners. This number has continued to grow in the first two months of Q3, underpinned by over 90 active marketplace sellers with significant continued momentum expected for the reminder of the financial year. 

 

In parallel, we continue to successfully scale our high margin own stock channel, adopting a selective, breadth not depth "test and repeat strategy". The new own stock channel revenue was A$7m, representing 11% of Total Revenue (H1 FY20: Nil) and it is expected that this will continue to increase to approximately 20% of Total Revenue for FY21.

 

Our UK and US teams are taking advantage of the significant counter seasonal inventory opportunities as we continue to scale the number of international partners and high margin own stock. Whilst there are significant supply side opportunities, there remain challenges with international freight costs due to the COVID-19 pandemic.

 

The Australian online retail market is estimated to reach A$47.3 billion** by 2024, growing in excess of 20% per annum. The Board remains confident about the Group's attractive positioning as an off-price specialist, with a clear proposition built around MYSALE Solutions, our proprietary technology platform. Our ambition remains to be the largest off-price marketplace for branded fashion, beauty and home in ANZ taking advantage of the continued strengthening ANZ off-price channel. 

 

Review of dual listing

 

Further to the announcement as part of our full year results on 26 November 2020, the Group has now progressed its review of a potential dual listing on the Australian Securities Exchange (ASX). The Board continues to believe that aligning the Group's operations with its listing location in parallel with its existing trading on AIM, is in the best interests of all shareholders. Lead advisors have been appointed. No formal decision has yet been made on whether to proceed, however, if a dual listing onto the ASX is pursued, it would likely occur in FY22. The Group will keep investors updated of any material developments.

 

_____________________________

Carl Jackson

Chief Executive Officer

30 March 2021

 

* Core Revenue:  Revenues excluding revenue from legacy inventory

** Euromonitor International - Retailing in Australia

 

 

 

Financial review by the Chief Financial Officer

 

Financial Key Performance Indicators

 

 

A$ million

 

H1 FY21

 

 

H1 FY20

 

 

Change

 

 

 

 

 

 

 

 

 

Group Total Revenue

 

63.8

 

 

71.9

 

 

-11%

ANZ

 

60.4

 

 

64.5

 

 

-6%

S-E Asia

 

3.4

 

 

7.4

 

 

-54%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Revenue Excluding Legacy Stock (Geographical)

 

61.3

 

 

53.1

 

 

15%

ANZ

 

58.1

 

 

48.1

 

 

21%

S-E Asia

 

3.2

 

 

5.0

 

 

-36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Revenue Excluding Legacy Stock (Product Type)

 

61.3

 

 

53.1

 

 

15%

Third-Party Suppliers

 

54.3

 

 

53.1

 

 

2%

New Own Stock

 

7.0

 

 

0.0

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit %

 

38%

 

 

34%

 

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statutory Result Before Tax

 

-1.0

 

 

-3.6

 

 

+2.6m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying EBITDA

 

2.5

 

 

-3.1

 

 

+5.6m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

15.8

 

 

7.3

 

 

116%

 

 

 

Revenue

 

Whilst Group Total Revenue decreased by 11% to A$63.8m (H1 FY20: A$71.9m), Core Revenue when excluding legacy stock grew by 15% to A$61.3m (H1 FY20: A$53.1m).

 

The Group has continued to focus on its activities and opportunities in the ANZ region, through its ANZ First strategy. This strategy aims to optimise the Group's significant scale, resources and market position in this region. This focus on ANZ resulted in Core Revenue growth of 21%, which was partially offset by an expected revenue decline in South-East Asia.

 

Our revenue focus is on sales through the inventory light platform, consisting of third-party sellers and selective high margin, fast turnaround own stock. Sales of legacy stock in the period reduced significantly to A$2.5m (H1 FY20: A$18.8m) as this remaining stock is cleared for cash.

 

Gross Margins

 

During the first half of FY21, gross profit margins have strengthened by 12% to 38% (H1 FY20: 34%). The focus on the higher quality revenue from third-party suppliers alongside the growth of our in-stock model has significantly contributed to driving the improved gross profit margin.

 

Administrative Expenses

 

The Group's fixed cost base reduced by 16% to A$6.5m (H1 FY20: A$7.7m) and variable costs reduced by 23% to A$15.2m (H1 FY20: A$19.7m). Overall cost base as a percentage of Group Total Revenue declined from 38% in H1 FY20 to 34% in H1 FY21.

 

The Group now has a reduced, right sized, more flexible cost base enabling it to benefit from operational gearing as revenues grow.

 

A$ million

H1

FY21

H1

FY20

Change

 

 

 

 

Expenses as per Financials

 

 

 

Selling and distribution expenses

16.3

20.4

(20%)

Administration expenses

9.2

12.3

(25%)

Impairment of receivables

0.2

0.2

0%

 

 

 

 

Less depreciation & amortisation

-3.6

-3.6

0%

Less one-off costs & discontinued activities

-0.4

-1.9

(80%)

Less share based payments

0.0

0.0

-

Total underlying expenses per financials

21.7

27.4

(21%)

 

 

 

 

Fixed expenses

 

 

 

Staff Costs

5.1

6.3

(19%)

Financial 

0.8

0.8

0%

Occupancy

0.6

0.6

0%

Total fixed expenses 

6.5

7.7

(16%)

 

 

 

 

Variable expenses

 

 

 

Delivery to customer expenses

5.9

8.6

(31%)

Staff costs

3.2

4.8

(33%)

Marketing

5.0

5.1

(2%)

Financial (merchant fees)

1.1

1.2

(8%)

Other

0.0

0.0

-

Total variable expenses

15.2

19.7

(23%)

 

 

 

 

Total underlying expenses (fixed and variable)

21.7

27.4

(21%)

 

 

 

Balance Sheet, Cash and Working Capital

 

The Group's closing cash balance was A$15.8m (H1 FY20: A$7.3m) and the Group now operates on a debt-free basis.

 

In October 2020 the company raised an additional A$9.3m from entities associated with both founders as well as the former CEO of Catch.com.au, who successfully built Catch.com.au into one of Australia's most successful online retail marketplaces.    

 

The total inventory balance has reduced to A$2.6m at period end (H1 FY20: A$2.8m).

 

Capital expenditure decreased significantly, as planned, to A$0.7m (H1 FY20: A$1.3m) as the efficiency of the proprietary technology platform continues to improve.

 

Underlying EBITDA

 

As noted above, the Group manages its operations by looking at the underlying EBITDA which excludes the impact of a number of one-off and non-cash items of a non-trading nature. This, in the Board's opinion, provides a more representative measure of the Group's performance. A reconciliation between reported profit before tax and underlying EBITDA is included in note 5 to the financial statements and outlined below.

 

 

A$ million

H1 FY21

H1 FY20

Change

 

 

 

 

Reported EBITDA

2.7

0.2

1250%

 

 

 

 

Share based payments

0

0

-

One-off costs & discontinued activities

0.4

1.9

(80%)

Unrealised foreign exchange loss

-0.6

2.5

(124%)

Debt forgiveness

0

-7.7

(100%)

 

-0.2

-3.3

(93%)

 

 

 

 

Underlying EBITDA

2.5

-3.1

+5.6m

Depreciation & Amortisation

3.6

3.6

0%

Net interest expense

0.1

0.2

(60%)

Underlying loss before tax

-1.2

-6.9

(83%)

 

 

 

Included within one-off items are items of a non-trading, non-recurring nature, including reorganisation costs, termination charges and other costs associated with the action plan described above.

 

Unrealised foreign exchange loss relates to the revaluation of foreign currency balance sheet items at period end. The significant balance in the prior period is attributed to the Australian dollar, the Group's functional and presentation currency, weakening against the Group's key trading currencies during the period. 

 

_____________________________

Mats Weiss

Chief Financial Officer

30 March 2021
 

 

MySale Group Plc

 

 

Statements of profit or loss and other comprehensive income

 

 

For the period ended 31 December 2020

 

 

 

 

 

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

Note

 

2020

 

2019

 

2020

 

 

 

 

A$'000

 

A$'000

 

A$'000

 

Revenue from contracts with customers

 

 

 

 

 

 

 

 

Revenue from sale of goods

 

3

 

63,763

 

71,870

 

131,032

Cost of sale of goods

 

 

 

(39,587)

 

(47,453)

 

(87,152)

 

 

 

 

 

 

 

 

 

Gross profit

 

3

 

24,176

 

24,417

 

43,880

 

Other operating gain, net

 

4

 

613

 

5,078

 

8,626

Interest revenue calculated using the effective interest method

 

 

 

78

 

3

 

4

 

Expenses

 

 

 

 

 

 

 

 

Selling and distribution expenses

 

 

 

(16,338)

 

(20,428)

 

(37,015)

Administration expenses

 

 

 

(9,191)

 

(12,329)

 

(20,746)

(Impairment)/recovery of receivables

 

7

 

(204)

 

(208)

 

2,262

Finance costs

 

 

 

(158)

 

(220)

 

(400)

 

Loss before income tax benefit/(expense)

 

 

 

(1,024)

 

(3,687)

 

(3,389)

 

Income tax benefit/(expense)

 

 

 

(369)

 

127

 

(171)

 

Loss after income tax benefit/(expense) for the period attributable to the owners of MySale Group Plc

 

 

 

(1,393)

 

(3,560)

 

(3,560)

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

 

(1,282)

 

1,263

 

(2,125)

 

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

 

 

 

(1,282)

 

1,263

 

(2,125)

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period attributable to the owners of MySale Group Plc

 

 

 

(2,675)

 

(2,297)

 

(5,685)

 

 

 

Basic earnings per share (cents per share)

 

17

 

(0.16)

 

(0.69)

 

(0.53)

 

 

 

The above statements of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

 

Balance sheets

As at 31 December 2020 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

Note

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

6

 

15,840

 

7,257

 

6,660

Trade and other receivables

 

7

 

3,161

 

4,653

 

4,107

Inventories

 

 

 

2,622

 

5,622

 

2,761

Income tax receivable

 

 

 

 

46

 

15

Other current assets

 

 

 

586

 

1,533

 

634

Total current assets

 

 

 

22,209

 

19,111

 

14,177

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

 

990

 

1,319

 

1,216

Right-of-use assets

 

8

 

4,601

 

5,814

 

5,362

Intangibles

 

9

 

28,201

 

32,394

 

30,168

Deferred tax

 

 

 

1,107

 

1,424

 

1,629

Total non-current assets

 

 

 

3,029

 

3,496

 

3,407

Total assets

 

 

 

60,137

 

63,558

 

55,959

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

10

 

16,840

 

19,031

 

18,985

Contract liabilities

 

11

 

6,421

 

8,912

 

6,186

Lease liabilities

 

 

 

1,609

 

1,465

 

1,581

Income tax payable

 

 

 

16

 

 

Provisions

 

 

 

2,593

 

3,982

 

2,428

Total current liabilities

 

 

 

27,479

 

33,390

 

29,180

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

 

 

4,242

 

5,486

 

5,048

Provisions

 

 

 

594

 

249

 

450

Total non-current liabilities

 

 

 

4,836

 

5,735

 

5,498

Total liabilities

 

 

 

32,315

 

39,125

 

34,678

 

Net assets

 

 

 

27,822

 

24,433

 

21,281

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

12

 

 

 

Share premium account

 

13

 

338,215

 

328,971

 

328,971

Other reserves

 

 

 

(126,289)

 

(121,828)

 

(124,979)

Accumulated losses

 

 

 

(184,084)

 

(182,690)

 

(182,691)

Equity attributable to the owners of MySale Group Plc

 

 

 

27,842

 

24,453

 

21,301

Non-controlling interest

 

 

 

(20)

 

(20)

 

(20)

 

 

 

 

 

 

 

 

 

Total equity

 

 

 

27,822

 

24,433

 

21,281

 

The above balance sheets should be read in conjunction with the accompanying notes.

 

 

 

Statements of changes in equity

For the period ended 31 December 2020

 

 

 

 Share premium

 

 Other

 

Accumulated

 

 Non-controlling

 

Total equity

 

 

account

 

reserves

 

losses

 

interest

 

Unaudited six months ended 31 December

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2019

 

306,363

 

(123,125)

 

(179,130)

 

(20)

 

4,088

 

 

 

 

 

 

 

 

 

 

 

Loss after income tax benefit/(expense) for the period

 

-

 

-

 

(3,560)

 

-

 

(3,560)

Other comprehensive income for the period, net of tax

 

-

 

1,263

 

-

 

-

 

1,263

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

-

 

1,263

 

(3,560)

 

-

 

(2,297)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners in their capacity as owners:

 

 

 

 

 

 

 

 

 

 

Contributions of equity, net of transaction costs (note 15)

 

22,608

 

-

 

-

 

-

 

22,608

Share-based payments

 

-

 

34

 

-

 

-

 

34

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2019

 

328,971

 

(121,828)

 

(182,690)

 

(20)

 

24,433

 

 

 

 Share premium

 

 Other

 

Accumulated

 

 Non-controlling

 

Total equity

 

 

account

 

reserves

 

losses

 

interest

 

Unaudited six months ended 31 December

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2020

 

328,971

 

(124,979)

 

(182,691)

 

(20)

 

21,281

 

 

 

 

 

 

 

 

 

 

 

Loss after income tax benefit/(expense) for the period

 

-

 

-

 

(1,393)

 

-

 

(1,393)

Other comprehensive income for the period, net of tax

 

-

 

(1,282)

 

-

 

-

 

(1,282)

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

-

 

(1,282)

 

(1,393)

 

-

 

(2,675)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners in their capacity as owners:

 

 

 

 

 

 

 

 

 

 

Contributions of equity, net of transaction costs (note 12)

 

9,244

 

-

 

-

 

-

 

9,244

Share-based payments

 

-

 

(28)

 

-

 

-

 

(28)

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2020

 

338,215

 

(126,289)

 

(184,084)

 

(20)

 

27,822

 

 

 

 

 

Share premium 

 

 Other

 

Accumulated

 

Non-controlling

 

Total equity

 

 

account

 

reserves

 

losses

 

interest

 

Audited year ended 30 June

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2019

 

306,363

 

(123,125)

 

(179,130)

 

(20)

 

4,088

 

 

 

 

 

 

 

 

 

 

 

Loss after income tax benefit/(expense) for the period

 

-

 

-

 

(3,561)

 

-

 

(3,561)

Other comprehensive income for the period, net of tax

 

-

 

(2,125)

 

-

 

-

 

(5,686)

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

-

 

(2,125)

 

(3,561)

 

-

 

(5,686)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners in their capacity as owners:

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares, net of transaction costs (note 12)

 

22,608

 

-

 

-

 

-

 

22,608

Share-based payments

 

-

 

271

 

-

 

-

 

271

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2020

 

328,971

 

(124,979)

 

(182,691)

 

(20)

 

21,281

 

The above statements of changes in equity should be read in conjunction with the accompanying notes.

 

 

 

Statements of cash flows

 

 

For the period ended 31 December 2020

 

 

 

 

 

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

Note

 

2020

 

2019

 

2020

 

 

 

 

A$'000

 

A$'000

 

A$'000

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Loss before income tax benefit/(expense) for the period

 

 

 

(1,024)

 

(3,687)

 

(3,389)

 

 

 

 

 

 

 

 

 

Adjustments for:

 

 

 

 

 

 

 

 

Depreciation and amortisation

 

 

 

3,626

 

3,642

 

7,520

Impairment of goodwill

 

 

 

 

(38)

 

390

Net loss/(gain) on disposal of property, plant and equipment

 

 

 

 

 

128

Net gain on disposal of intangibles

 

 

 

(78)

 

(3)

 

(4)

Interest income

 

 

 

 

220

 

400

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

2,524

 

134

 

5,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Decrease in trade and other receivables

 

 

 

946

 

5,333

 

7,320

Decrease/(increase) in inventories

 

 

 

139

 

10,341

 

13,202

Decrease/(increase) in other operating assets

 

 

 

(226)

 

2,967

 

2,502

Increase/(decrease) in trade and other payables

 

 

 

(3,326)

 

(12,781)

 

(17,307)

Increase/(decrease) in contract liabilities

 

 

 

235

 

(1,496)

 

(4,222)

Increase/(decrease) in other provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(393)

 

3,028

 

5,962

Interest received

 

 

 

78

 

3

 

4

Interest paid

 

 

 

 

(220)

 

(51)

Income taxes paid

 

 

 

 

 

(321)

 

 

 

 

 

 

 

 

 

Net cash from/(used in) operating activities

 

 

 

(315)

 

2,811

 

5,594

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Payments for property, plant and equipment

 

 

 

 

(415)

 

(980)

Payments for intangibles

 

9

 

(672)

 

(855)

 

(1,633)

Payments for security deposits

 

 

 

 

(2,471)

 

Proceeds from release of security deposits

 

 

 

522

 

1,313

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

(150)

 

(2,428)

 

(2,613)

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issue of shares

 

13

 

9,244

 

22,608

 

22,608

Repayment of borrowings

 

 

 

 

(5,200)

 

(5,200)

Proceeds/(repayments) of lease liabilities

 

 

 

(778)

 

755

 

(1,163)

 

 

 

 

 

 

 

 

 

Net cash from/(used in) financing activities

 

 

 

8,466

 

18,163

 

16,245

 

Net increase/(decrease) in cash and cash equivalents

 

 

 

8,001

 

18,546

 

19,226

Cash and cash equivalents at the beginning of the financial period

 

 

 

6,660

 

(12,323)

 

(12,323)

Effects of exchange rate changes on cash

 

 

 

1,179

 

1,034

 

(243)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the end of the financial period

 

6

 

15,840

 

7,257

 

6,660

 

The above statements of cash flows should be read in conjunction with the accompanying notes

 

 

MySale Group Plc

Notes to the financial statements

31 December 2020

 

Note 1. General information

 

MySale Group Plc is a group consisting of MySale Group Plc (the 'Company' or 'parent entity') and its subsidiaries (the 'Group'). The financial statements of the Group, in line with the location of the majority of the Group's operations and customers, are presented in Australian dollars and generally rounded to the nearest thousand dollars.

 

The principal business of the Group is the operation of online shopping outlets for consumer goods like ladies, men and children's fashion clothing, accessories, beauty and homeware items.

 

MySale Group Plc is a public company, limited by shares, listed on the AIM (Alternative Investment Market), a sub-market of the London Stock Exchange. The Company is incorporated and registered under the Companies (Jersey) Law 1991. The Company is domiciled in Australia.

 

The registered office of the Company is Ogier House, The Esplanade, 44 Esplanade Street. Helier, JE4 9WG, Jersey and principal place of business is at 3/120 Old Pittwater Road, Brookvale, NSW 2100, Australia.

 

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 March 2021.

 

Note 2. Significant accounting policies

 

These financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with International Accounting Standards IAS 34 'Interim Financial Reporting'.

 

These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the Company during the interim reporting period.

 

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the periods presented, except for the policies stated below.

 

Going concern

 

The consolidated financial statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least 12 months from the date of approval of these financial statements. 

 

As at 31 December 2020, the Group's current liabilities exceeds current assets by A$5,270,000 (30 June 2020: A$15,003,000) and the Group has incurred a loss before tax of A$1,024,000 (at 31 December 2019: A$3,687,000) and generated operating cash outflow of A$315,000 (at 31 December 2019: A$4,261,000 inflow). 

 

The uncertainty as to the future impact on the Group of the COVID-19 pandemic has been considered as part of the Group's adoption of the going concern basis. Although a number of COVID-19 restrictions in Australia have eased after the reporting period, the Directors continue to monitor developments and the potential impact of any new measures imposed due to COVID-19 on the operational and financial risks of the Group.

 

Immediate action has been taken to protect the cash resources of the business until further certainty is gained. These measures include, but are not limited to: 

 

 

strengthening the cash position by raising an additional A$9,200,000 on 08 October 2020

 

obtaining government support as part of various economic stimulus initiatives.

 

The Directors have prepared cash flow forecasts covering a period to 31 March 2022. This assessment has included consideration of the forecast performance of the business for the foreseeable future and the cash available to the Group. In preparing these forecasts, the Directors have considered a number of detailed sensitivities, including a worst case scenario considering the potential impact of Covid-19.

 

If revenue were to fall in line with the worst case model, the Group would take further remedial action to counter the reduction in profit and cash through a cost cutting exercise that would include staff redundancies and general cost control measures.

 

Included in the Group's current liabilities is balance for contract liabilities (non-cash liabilities) of A$6,421,000. Excluding this the Group's current assets exceed current liabilities by A$1,151,000.

 

Additionally, the Group has a proven track record of raising capital to assist with cash flow needs as and when required.

 

Based on current trading, the worst case scenario is considered unlikely. However, it is difficult to predict the overall impact and outcome of COVID-19 at this stage, particularly if the second wave continues in to 2021. Nevertheless, after making enquiries, and considering the uncertainties described above, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the interim report and accounts.

 

New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board that are mandatory for the current reporting period.

 

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

 

 

 

Note 3. Operating segments

 

Identification of reportable operating segments

 

The Group's operating segments are determined based on the internal reports that are reviewed and used by the Board of Directors (being the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.

 

The CODM reviews revenue and gross profit by reportable segments, being geographical regions. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in these financial statements.

 

The Group operates separate websites in each country that it sells goods in. Revenue from external customers is attributed to each country based on the activity on that country's website. Similar types of goods are sold in all segments. The Group's operations are unaffected by seasonality.

 

Intersegment transactions

 

Intersegment transactions were made at market rates and are eliminated on consolidation.

 

Operating segment information

 

 

 

Australia and

 

South-East

 

 

 

 

New Zealand

 

Asia

 

Total

Unaudited six months ended 31 December - 2020

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Sales to external customers transferred at a point in time

 

60,387

 

3,376

 

63,763

Total revenue

 

60,387

 

3,376

 

63,763

 

 

 

 

 

 

 

Gross profit

 

22,647

 

1,529

 

24,176

Other operating gain, net

 

 

 

 

 

613

Selling and distribution expenses

 

 

 

 

 

(16,338)

Administration expenses

 

 

 

 

 

(9,191)

Finance income

 

 

 

 

 

78

Finance costs

 

 

 

 

 

(158)

Impairment of receivables

 

 

 

 

 

(204)

Loss before income tax benefit/(expense)

 

 

 

 

 

(1,024)

Income tax benefit/(expense)

 

 

 

 

 

(369)

Loss after income tax benefit/(expense)

 

 

 

 

 

(1,393)

 

 

 

Australia and

 

South-East

 

 

 

 

New Zealand

 

Asia

 

Total

Unaudited six months ended 31 December - 2019

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Sales to external customers transferred at a point in time

 

64,430

 

7,440

 

71,870

Total revenue

 

64,430

 

7,440

 

71,870

 

 

 

 

 

 

 

Gross profit

 

21,720

 

2,697

 

24,417

Other operating gain, net

 

 

 

 

 

5,078

Selling and distribution expenses

 

 

 

 

 

(20,428)

Administration expenses

 

 

 

 

 

(12,329)

Finance income

 

 

 

 

 

3

Finance costs

 

 

 

 

 

(220)

Impairment of receivables

 

 

 

 

 

(208)

Loss before income tax benefit/(expense)

 

 

 

 

 

(3,687)

Income tax benefit/(expense)

 

 

 

 

 

127

Loss after income tax benefit/(expense)

 

 

 

 

 

(3,560)

 

 

 

Australia and New Zealand

 

South-East Asia

 

Total

Audited year ended 30 June 2020

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Sales to external customers transferred at a point in time

 

118,107

 

12,925

 

131,032

 

118,107

 

12,925

 

131,032

 

 

 

 

 

 

 

 

38,943

 

4,937

 

43,880

 

Other operating gain, net 

 

8,626

Selling and distribution expenses 

 

(37,015)

Administration expenses 

 

(20,746)

Finance income 

 

4

Finance costs 

 

(400)

Recovery of receivables 

 

2,262

 

(3,389)

Income tax expense

 

(171)

 

(3,560)

 

 

Note 4. Other operating gain, net

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Net foreign exchange gain/(loss)

 

661

 

(2,719)

 

893

Net (loss)/gain on disposal of property, plant and equipment

 

(65)

 

38

 

(23)

Debt forgiveness *

 

 

7,723

 

7,723

Other income

 

17

 

36

 

33

 

 

 

 

 

 

 

Other operating gain, net

 

613

 

5,078

 

8,626

 

* In September 2019, the Group finalised a share placement for A$23,329,000. Net proceeds after considering the share issue costs of A$721,000 was A$22,608,000. The total number of new shares issued under the placement was 640,376,083 bringing the total shares on issue to 794,707,735. As part of the share placement, the Group agreed with its financier Hong Kong and Shanghai Banking Corporation Plc ('HSBC') to extinguish all borrowing facilities, Corporate Guarantees and Indemnities with a repayment of A$10,914,000 in September 2019. As part of this repayment HSBC agreed to provide the Group with a debt forgiveness amount of A$7,723,000.

 

Note 5. EBITDA reconciliation (earnings before interest, taxation, depreciation and amortisation)

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

EBITDA reconciliation

 

 

 

 

 

 

Loss before income tax benefit

 

(1,024)

 

(3,687)

 

(3,389)

Less: Interest income

 

(78)

 

(3)

 

(4)

Add: Interest expense

 

158

 

220

 

400

Add: Depreciation and amortisation

 

3,626

 

3,642

 

7,526

 

 

 

 

 

 

 

EBITDA

 

2,682

 

172

 

4,533

 

 

 

 

 

 

 

Underlying EBITDA represents EBITDA adjusted for certain items, as outlined below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying EBITDA reconciliation
EBITDA

 

2,682

 

172

 

4,533

Impairment/(recovery) of receivables

 

 

 

(1,505)

Debt forgiveness (note 4)

 

 

(7,723)

 

(7,723)

Share-based payments

 

28

 

34

 

271

Reorganisation costs*

 

283

 

337

 

1,796

One-off costs of non-trading, non-recurring nature including acquisitions expenses

 

102

 

1,622

 

(288)

Inventory write down

 

 

 

948

Unrealised foreign exchange (gain)/losses

 

(554)

 

2,472

 

(763)

 

 

 

 

 

 

 

Underlying EBITDA

 

2,541

 

(3,086)

 

(2,731)

 

*

 

Costs in relation to the closure of overseas operations.

 

Note 6. Current assets - cash and cash equivalents

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Cash at bank

 

15,730

 

7,146

 

6,550

Bank deposits at call

 

110

 

111

 

110

 

 

 

 

 

 

 

 

 

15,840

 

7,257

 

6,660

 

 

Note 7. Current assets - trade and other receivables

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Trade receivables

 

2,763

 

7,897

 

2,479

Less: Allowance for expected credit losses

 

(124)

 

(5,597)

 

(183)

 

 

2,639

 

2,300

 

2,296

 

 

 

 

 

 

 

Other receivables

 

 

1,887

 

369

Sales tax receivable

 

522

 

466

 

1,442

 

 

 

 

 

 

 

 

 

3,161

 

4,653

 

4,107

 

Trade receivables include uncleared cash receipts due from online customers which amounted to A$1,858,000 (30 June 2020: A$2,261,000 and 31 December 2019: A$3,039,000).

 

Allowance for expected credit losses

 

The Group has recognised a loss of [A$nil] (30 June 2020: A$2,262,000 recovered and 31 December 2019: a loss of A$208,000) in profit or loss in respect of impairment of receivables for the half-year ended 31 December 2020.

 

Note 8. Non-current assets - right-of-use assets

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Buildings and equipment - right-of-use (Opening cost on adoption of IFRS 16)

 

5,362

 

1,724

 

1,724

Additions

 

 

4,452

 

4,781

Less: Accumulated depreciation

 

(761)

 

(362)

 

(1,143)

 

 

 

 

 

 

 

 

 

4,601

 

5,814

 

5,362

 

 

 

Property

 

Equipment

 

Total

Consolidated

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Opening cost on adoption of IFRS 16

 

5,324

 

38

 

5,362

Additions

 

-

 

-

 

-

Cost at 31 December 2020

 

5,324

 

38

 

5,362

 

 

 

 

 

 

 

Depreciation charge for the half-year

 

(754)

 

(7)

 

(761)

 

 

 

 

 

 

 

NBV at 31 December 2020

 

4,570

 

31

 

4,601

 

The Group leases buildings for its offices, warehouses and retail outlets under agreements of between one to five years with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.

 

The Group leases office equipment under agreements of less than one year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.

 

Note 9. Non-current assets - intangibles

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Goodwill - at cost

 

21,206

 

21,250

 

21,214

 

 

 

 

 

 

 

Customer relationships - at cost

 

3,850

 

3,959

 

3,850

Less: Accumulated amortisation

 

(3,718)

 

(3,827)

 

(3,718)

 

 

132

 

132

 

132

 

 

 

 

 

 

 

Software - at cost

 

28,654

 

27,364

 

28,001

Less: Accumulated amortisation

 

(22,061)

 

(16,985)

 

(19,608)

 

 

6,593

 

10,379

 

8,393

 

 

 

 

 

 

 

ERP system

 

4,883

 

4,901

 

4,905

Less: Accumulated amortisation

 

(4,613)

 

(4,268)

 

(4,476)

 

 

270

 

633

 

429

 

 

 

 

 

 

 

 

 

28,201

 

32,394

 

30,168

 

 

 

 

 

Customer

 

 

 

ERP

 

 

 

 

 Goodwill

 

relationships

 

Software

 

system

 

Total

Unaudited six months ended 31 December

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2020

 

21,214

 

132

 

8,393

 

429

 

30,168

Additions

 

-

 

-

 

685

 

-

 

685

Disposals

 

-

 

-

 

(2)

 

(3)

 

(5)

Exchange differences

 

(8)

 

-

 

-

 

-

 

(8)

Amortisation

 

-

 

-

 

(2,483)

 

(156)

 

(2,639)

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2020

 

21,206

 

132

 

6,593

 

270

 

28,201

 

Note 10. Current liabilities - trade and other payables

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Trade payables

 

11,487

 

14,744

 

13,053

Other payables and accruals

 

2,800

 

4,287

 

3,163

Sales tax payable

 

2,553

 

 

2,769

 

 

 

 

 

 

 

 

 

16,840

 

19,031

 

18,985

 

Note 11. Current liabilities - contract liabilities

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Contract liabilities

 

6,421

 

8,912

 

6,186

 

Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the reporting period was A$6,421,000 as at 31 December 2020 (A$8,912,000 as at 31 December 2019 and A$6,186 as at 30 June 2020) and is expected to be recognised as revenue in future periods as follows:

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Within  months

 

6,421

 

8,912

 

6,186

 

Contract liabilities represent the Group's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the Group recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the Group has transferred the goods or services to the customer.

 

Note 12. Equity - share capital

 

 

 

Unaudited six months ended
31 December

 

Unaudited six months ended
31 December

 

Audited year ended
30 June

 

Unaudited six months ended
31 December

 

Unaudited six months ended
31 December

 

Audited year ended
30 June

 

 

2020

 

2019

 

2020

 

2020

 

2019

 

2020

 

 

Shares

 

Shares

 

Shares

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares £nil each - fully paid

 

902,465,982

 

817,240,853

 

817,240,853

 

-

 

-

 

-

Less: Treasury shares

 

(25,533,118)

 

(25,533,118)

 

(25,533,118)

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

876,932,864

 

791,707,735

 

791,707,735

 

-

 

-

 

-

 

 

 

Movements in ordinary share capital - issued and fully paid

 

Details

 

Date

 

Shares

 

A$'000

 

 

 

 

 

 

 

Balance

 

1 July 2020

 

817,240,853

 

-

Issue of shares

 

8 October 2020

 

85,225,129

 

-

 

 

 

 

 

 

 

Balance

 

31 December 2020

 

902,465,982

 

-

 

Ordinary shares

 

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held.

 

Treasury shares

 

The Company has two employee share plans; (1) the Executive Incentive Plan ('EIP') and (2) the Loan Share Plan ('LSP'). In accordance with the terms of each plan 100% of the ordinary shares will vest three years from grant date subject either to the achievement of the Underlying Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') included in the Company's internal forecasts set by the Board in the year of the grant or certain share price hurdles. Share options and loan shares have been granted over the ordinary share capital of the Company and are accounted for as share-based payments. That is, the fair value of the accounting expense in relation to these options and loan shares are recognised over the vesting period.   

 

Vested and unvested shares under the plans are recorded as treasury shares representing a deduction against issued capital. When the loans are settled or the options exercise, the treasury shares are reclassified as ordinary shares and the equity will increase accordingly. Treasury shares have no dividend, or voting, rights.

 

Note 13. Equity - share premium account

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Share premium account

 

338,215

 

328,971

 

328,971

 

The share premium account is used to recognise the difference between the issued share capital at nominal value and the capital received.

 

In October 2020, the Company issued 85,225,129 new ordinary shares to entities associated with Gabby Leibovich, Hezi Leibovich and Nati Harpaz (together, the 'Subscription') to raise approximately £5.1m (approximately A$9.3m). The Subscription successfully built Catch.com.au into one of Australia's most successful online retailers, which included an inventory business as well as a successful marketplace which had more than two million products available for Australian consumers. 

 

The Company intends to use a proportion of the proceeds as capital investments in technology to expand and develop its marketplace platform. The Company has been taking advantage of inventory available around the world and the proceeds will enable further selective investment in inventory to continue to improve brand and inventory mix. The Company has been cash positive for the last six months and this additional investment of A$9.3m gives total net cash in excess of A$12m to grow the business.

 

In September 2019, the Company finalised a share placement for A$23,329,000. Net proceeds after considering the share issue costs of A$721,000 was A$22,608,000. The total number of new shares issued under the placement was 640,376,083 bringing the total shares on issue to 794,707,735. 

 

In December 2019, the Company issued 22,533,118 ordinary shares, 4,542,614 to MySale Group Trustee Limited, in its capacity as the trustee of the MySale Group Plc Employee Benefit Trust ('EBT'), and 17,990,504 directly to those Directors and management taking part in the Loan Share Plan as part of the Company's management incentive scheme for its Directors, Non-executive Directors, and senior management. These shares, in addition to the existing 3,000,000 ordinary shares already held in the EBT, will be used to satisfy the Share Awards, subject to the performance criteria being met. Following admission of these shares the Company's total issued share capital was 817,240,853 Ordinary Shares. The total number of voting rights in the Company is 809,698,239. 

 

Note 14. Equity - dividends

 

There were no dividends paid, recommended or declared during the current or previous financial period.

 

Note 15. Contingent liabilities

 

The Group issued bank guarantees through its banker, Hong Kong, Shanghai Banking Corporation and Macquarie Bank, in respect of lease obligations amounting to A$nil (30 June 2020: A$777,000 and 31 December 2019: A$524,000). 

 

The Group has issued a bank guarantee through its banker ANZ Bank New Zealand Limited, in respect of customs and duties obligations amounting to NZ$nil (30 June 2020: NZ$nil and 31 December 2019: NZ$150,000). 

 

Note 16. Related party transactions

 

Parent entity

 

MySale Group Plc is the parent company of the Group.

 

Transactions with related parties

 

The following transactions occurred with related parties:

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Sale of goods and services:

 

 

 

 

 

 

Sale of goods to other related party *

 

 

-

 

 

*

 

Relates to related party transactions with Arcadia Group Ltd and Sports Direct.Com Retail Ltd. Arcadia Group Ltd is a subsidiary of Shelton Capital. Mike Ashely is a shareholder in Sports Direct.Com Retail Ltd. Shelton Capital and Mike Ashley were shareholders in MySale Group Plc during the course of the financial period.

 

Receivable from and payable to related parties

The following balances are outstanding at the reporting date in relation to transactions with related parties:

 

 

 

Unaudited six months ended 31 December

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$'000

 

A$'000

 

A$'000

 

 

 

 

 

 

 

Current receivables:

 

 

 

 

 

 

Trade receivables from other related party

 

 

-

 

 

Loans to/from related parties

 

There were no loans to or from related parties at the current and previous reporting date.

 

Terms and conditions

 

All transactions were made on normal commercial terms and conditions and at market rates.

 

Note 17. Earnings per share

 

 

 

Unaudited six months ended 31 December

 

Unaudited six months ended 31 December

 

Audited year ended 30 June

 

 

2020

 

2019

 

2020

 

 

A$000

 

A$000

 

A$000

 

 

 

 

 

 

 

Loss after income tax attributable to the owners of MySale Group Plc

 

(1,393)

 

(3,560)

 

(3,560)

 

 

 

Number

 

Number

 

Number

 

 

 

 

 

 

 

Weighted average number of ordinary shares used in calculating basic earnings per share

 

856,147,977

 

515,374,761

 

665,483,037

Weighted average number of ordinary shares used in calculating diluted earnings per share

 

856,147,977

 

515,374,761

 

665,483,037

 

 

 

Cents

 

Cents

 

Cents

 

 

 

 

 

 

 

Basic earnings per share

 

(0.16)

 

(0.69)

 

(0.53)

Diluted earnings per share

 

(0.16)

 

(0.69)

 

(0.53)

Underlying earnings per share

 

0.30

 

(0.60)

 

(0.41)

 

65,985,501 (30 June 2020: 65,985,501 and 31 December 2019: 7,542,614) employee long-term incentives have been excluded from the diluted earnings calculation as they are anti-dilutive for the period.

 

Note 18. Events after the reporting period

 

 

No matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

 

 

 

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