Good morning, it's Paul here.

To get you started this morning, please see yesterday's completed report here. I added new sections on the trading update from Staffline (LON:STAF) , and also reviewed the disastrous results from (privately owned) fast fashion website, Missguided.

Today's big news is the Q3 (Oct-Dec) trading update from Sosandar (LON:SOS) which is my largest personal holding, so I'll be focused on that first thing.

EDIT: I spent the whole day working on Sosandar, and was too tired to do any more writing in the evening. So I got an early night, and have resurfaced early on Thu morning, to continue writing about Weds other share announcements of interest. These are now in Thursday's report here.




Sosandar (LON:SOS)

Share price: 32p (before market open)
No. shares: 116.2m
Market cap: £37.2m

(at the time of writing, I hold a long position in this share)

Trading update

Sosandar is an online-only womenswear fashion brand. It launched in autumn 2016, and floated on AIM via a reverse takeover (of a cash shell called Orogen) in Nov 2017, at 15.1p per share. It is based in Wilmslow, with logistics out-sourced to Clipper. IT is also out-sourced, using Magento software. The founder joint-CEOs have a fashion magazine background, having founded & edited Look magazine. This is my largest personal shareholding, which I am treating as very long term - backing great management basically, with a big opportunity to fill an under-served niche.

Today's update covers the seasonal peak trading of Oct-Dec 2018 (Q3 in Sosandar's financial calender, with a 31 Mar 2019 year end)

I've just come off the phone to management, as I wanted to ask some questions & incorporate them into this report, hence the delay in posting this.

Main points;

Revenue - Q3 revenues were £1.6m (up 209% on the prior year comparative) - very good growth, but personally I was hoping for a figure nearer to £2.0m, so my expectations got a little ahead of things. Memo to self: don't get over-excited over short term numbers.

Growth rate - I queried the deceleration in revenue growth from H1 (+407%) to Q3 (+209%), with management this morning, who made the following valid points;

  • Tougher prior year comparatives from Q3…

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