It also announced that full-year sales and profits are set to be “significantly” lower than expected attributed to “challenging conditions during its peak second quarter trading period”.
The group said changes to Australian tax legislation led to “greater than anticipated” disruption in its largest market. The group also operates in New Zealand, South East Asia and the UK.
Despite the warning it expects performance in the second half to be “significantly improved”, following measures taken to reduce costs and improve margins, resulting in a “small” underlying EBITDA profit for the full year.
Carl Jackson Mysale CEO said: “We are very disappointed in the performance during this year’s peak trading period. In response to this underperformance we have significantly accelerated and expanded our existing plans to streamline the business, reduce the cost base and make changes to the product strategy. The results of these actions will be realised in the second half of this financial year.
“Whilst we are experiencing a short term dip in revenue and profitability we anticipate the actions initiated shall deliver a return to growth in underlying EBITDA in the second half of the current year. The group has strong balance sheet and the anticipated improvements in working capital are being achieved and cash balances are increasing.”
He added: “The reconfigured business will be stronger, more efficient and continue to provide a compelling consumer offer and deliver unique solutions to our brand partners.”
Launched in 2007, the group currently runs 24 websites in eight countries, including MySale and Cocosa in the UK.