MySale shares collapsed by 52 per cent yesterday, costing its backers Sir Philip Green and Mike Ashley millions of pounds, after the flash sales website warned on profits,
The company said pre-tax profits for the year to 30 November were expected to be “materially below market expectations”, despite reporting double-digit rise in sales.
It blamed a slowdown in its home market of Australia and New Zealand where it has faced increased competition and the economic outlook has weakened.
As a result, sales in the region were flat. However, MySale said revenue in Asia was up 29 per cent while its new businesses in the UK and the US were “materially ahead of analyst expectations”.
Shares closed down 89.75p to 83.50p, valuing the company at around £125m. It is the second time MySale has suffered a significant blow to its share price.
It had a rocky debut on Aim in June after an error in its listing price caused the stock to slump by nearly one third. Brokers on the deal mistakenly listed shares at 2.26p rather than 226p.