Good morning, it's Paul here.

Today's report is a mixture of backlog from yesterday, and reports published today. Some was written last night, and some today, so that's why it might sound a bit confusing in places.




Sosandar (LON:SOS)

Share price: 37.0p (up 8.8% today)
No. shares: 116.2m
Market cap: £43.0m

(this is my largest personal shareholding)

Interim results

My main focus on Weds morning will be interim results from Sosandar (LON:SOS) (which is my largest personal shareholding). We already know from the 10 October 2018 trading update what to expect, in terms of H1 revenues (£1.84m, organic growth of a stunning 407% Y-on-Y), and an excellent gross margin of 55%.

However, it's the most recent outlook & current trading comments which will be key. I'm anticipating strong current trading, for 2 reasons;

1) In the last update, it said that September 2018 had seen record sales. That is when new season autumn/winter stock hits the website. So if the initial sales are strong, then you can be sure of a successful season overall (to early January), because the product designs have hit the nail on the head. Fashion retail is mainly about the product. This tiny company is producing better womenswear ranges than Marks & Spencer. Think about that for a moment.

EDIT: results confirmed in the narrative, that October was a new consecutive record sales month. As you would expect for a rapid growth company. End of edit.

2) I monitor the Sosandar website every day. A lot of "new in" styles are selling out (in some sizes) within days of hitting the website - which augurs well for current trading. Social media followers are small, but growing fast on the key ones - Instagram & Facebook.

I wrote the above last night.

For anyone interested, here is my initial take on the interim results this morning. More later;

Figures and current trading are in line with management expectations. I queried on a phone call this morning if management and market (i.e. house broker forecast) expectations are the same thing? Yes they are.

In my opinion, they should beat the full year (FY 03/2019) revenue forecast of £3.9m (Shore Capital), because Oct-Dec is a huge seasonal peak in womenswear. EDIT: Shore Capital has today upgraded…

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