MySale Group losses deepen as restructuring takes toll
MySale Group on Thursday reported a wider annual loss as revenue dived and margins were slashed amid restructuring efforts.
The Australia and New Zealand-focused business booked a loss before tax of A$58.2m (£30.2m) for the year ended 30 June, a sharp deterioration from the A$3.7m loss registered in the year before, as revenues slid by 29% to A$208.6m.
The drop in turnover came after the online retailer encountered difficulties due to changes in Australian goods and services taxes, while it also disposed of its UK website and shutdown online operations in the Philippines and Thailand.
Gross margin tumbled from 28.6% to 8.9% as the AIM traded company booked significant costs associated with restructuring the business, which included supply chain optimisation and the closure of offices and warehouses in the UK and US.
MySale said trading in its ongoing financial year has been in line with management expectations, leading the board to anticipate that its next set of annual underlying earnings and revenue will live up to management forecasts.
Chief executive Carl Jackson 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."
Jackson added that the company's new organisational structure, improved business model and debt free status meant it was primed to deliver value moving forwards.
MySale shares were up by 1.99% at 3.59p at 1234 GMT.