Shares in MySale plunged over 50% following a trading statement released on Tuesday.
The online retailer warned of a half-year loss amid challenging trading conditions amid the festive period.
CEO of MySale, Carl Jackson, 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.”
“The reconfigured business will be stronger, more efficient and continue to provide a compelling consumer offer and deliver unique solutions to our brand partners.’’
MySale runs 24 websites in eight countries.
Revenues and pre-tax profits for the six months ending June 2019 are expected to be “significantly” below market expectations.
Shares in MySale (LON: MYSL) are trading down 49.78% at 17,40 (1035GMT).