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Philip Green-backed MySale sees earnings rise

March 01, 2017 at 03:56 am EST

LONDON (Reuters) - A day after paying out $449 million to plug a pension hole in a failed retailer, billionaire Philip Green was given a little financial relief as MySale (>> Mysale Group PLC), the online "flash" sales group he backs, reported a jump in first-half core earnings.

The Topshop owner's family owns a 22 percent stake in the Australia-based MySale, while Mike Ashley's Sports Direct (>> Sports Direct International Plc) holds 4.8 percent, according to Reuters data.

The company, which holds flash sales of fashion, cosmetics and homewares at discounted prices, said on Wednesday it made underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of A$3.0 million pounds in the six months to Dec. 31, up from A$1.8 million pounds in the same period of 2015.

Online revenue increased 19 percent to A$127.1 million as the firm's active customer base also increased 19 percent to 870,000.

"The growth of our underlying EBITDA for four consecutive half year periods endorses our strategic plan and we remain confident in the full year's prospects," said Chief Executive Carl Jackson.

MySale listed on London's junior Alternative Investment Market (AIM) in June 2014 at 226 pence but issued a profit warning the same year.

Over the last year the stock has risen 173 percent. It was unmoved on Wednesday at 120.1 pence, valuing the business at 183 million pounds ($226.39 million).

On Tuesday Green said he hoped his settlement with Britain's pensions regulator would "close this sorry chapter" for pensioners of collapsed department store chain BHS.

($1 = 0.8083 pounds)

(Reporting by James Davey; editing by Kate Holton)

Stocks treated in this article : Sports Direct International Plc, Mysale Group PLC

Philip Green

British billionaire Philip Green is known for his commercial success, his unconventionality and for his mordacity. Seventh richest man in Britain, he shares with his wife Christina a fortune of £3.6 billion, according to the Sunday Times.

He leaved the school at 15 years old, and he began to work as shoes importer travelling in United States, Europe and Far East. When he came back in UK, he borrowed £20 000 and he created his first business importing jeans and selling these to retailers in London.

In 1979, Philip Green bought a large stock of clothing at extremely low prices, and he decided to open his own shop.
In 1988 he became Chairman of Amber Day, a retailing company listed on the Stock exchange.

In early 90s, he bought the chain stores Owen Owen and in 1995 Olympus Sports, which he sold three years later to JJB Sports for £ 550 million.
In 1999, he became popular thanks to hostile takeover’s attempt on Marks and Spencer. Acquisition was blocked by board of directors of the most famous British chain stores, for this reason Green changes the victim, British Home Stores (BHS), which he bought in 2000.

Two years later, it was Arcadia Group’s turn, which owned famous brands Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop / Topman and Wallis. Recently also Etam’s chain was acquired by the English businessman.

On 20th October 2005, Green distributed to Arcadia Group’s shareholders dividends of nearly £1.3 billion, and he and his wife (own for 92%) received £1.17 billion, this is the largest dividend ever received by an individual investor in the history of the British company.

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