Good morning! 

Lots of updates to look at today.

This list is final:

Mello 2019

A quick reminder that Mello is coming up next month, with a Trusts & Funds event on Wednesday 15th, followed by the main event.

There is a 40% discount for the main event with the discount code STOCKO40, and then the Trusts and Funds event can be added to your trip for the princely sum of £10.

The conference will incorporate the Mello Awards, so you can get your nominations in now if you'd like to influence the awards ceremony!

It will be a great chance to meet a wide range of company CEOs and fellow investors, and I look forward to seeing many of you there.

(Update by Paul Scott, who owns shares in SOS.)

Sosandar (LON:SOS)

  • Share price: 28p (+6%)
  • No. of shares: 116 million
  • Market cap: £32.5 million

Trading Update

Excellent update - sales ahead of last Shore Capital forecast of £4.35m. Not sure why the company uses odd phrase "comfortably in line", instead of ahead?!

Gross margin improved to 57.7% in Q4, which I've calculated on a spreadsheet using the H1 numbers, and the Q3 trading update, plus of course today's update. This is a very high gross margin, for a company ordering small production runs. It indicates strong pricing power, and that most styles are being sold mostly at full price (little discounting). An absolutely key metric - very few competitors of this size will be getting anywhere near that level.

Cash burn (once you strip out increased inventories) is about £0.75m, down from £1m per quarter previously. That's all as planned, so I find it most odd that some posters here mention cash burn as if it's a surprise. It's not, it's as planned. They're driving growth, and that costs money. I reckon breakeven revenues…

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