REG - Sosandar PLC - Half Year Results
12/12/2023 07:15
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RNS Number : 4119W Sosandar PLC 12 December 2023
Date: 12 December 2023
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Half Year Results and Trading Update
Strong autumn trading, improved margins and tracking in line with full year
market expectations
Sosandar PLC (AIM: SOS), one of the fastest growing fashion brands in the UK,
creating quality, trend-led products for women of all ages, is pleased to
announce its financial results for the six months ended 30 September 2023 and
a post period trading update covering October and November.
Post-period Trading Highlights (October and November)
Autumn trading has been strong, and the Company is trading in line with full
year market expectations. All channels have performed well with strong
revenue growth, increased gross margin, positive pre-tax profit in both months
and a record month of trading in November, with similar momentum in December
to date.
· Revenue for October and November in excess of £10m, a 16% increase on the
same period last year and a significant improvement on the 6% growth achieved
in H1 FY24
· Gross margin up 430bps versus H1 FY23 from 55.4% to 59.8%, reflecting the
planned reduction in price promotional activity
· Strong performance on own site and one of the top selling brands across all
third-party partners including Next and M&S
· Substantial progress towards opening our first own stores, with locations
identified ahead of planned launch early in FY25
· Sainsbury's brand-new fashion concept stores went live in early October with a
wide range of Sosandar product selling well in all nine stores
· Signed new agreements with two large prestigious international third-party
partners: The Iconic in Australia which has recently launched and The Bay in
Canada, which is expected to launch during the latter part H2 FY24
· Balance sheet remains robust with cash position increasing to £7.3m at 30
November 2023
Half Year Financial Highlights
· Net revenue growth of 6.0% to £22.2m (HY23: £21.0m)
· Loss before tax of £1.3m (HY23: £0.1m profit)
· Gross margin increased to 55.4% (H1 FY22: 54.4%)
· Net cash of £7.0m as at 30 Sept 2023 (FY23: £10.6m)
Ahead of our considered move towards a multi-channel model aiming to
significantly increase our addressable market, in Q2 FY24 we trialled a
reduction in price promotional activity across our own site. The performance
in the period reflects this trial which, as expected, resulted in a material
improvement in average order value and margin with the anticipated reduction
in site visits, orders and conversion. The planned roll out of our store
estate over the medium term is specifically designed to deliver profitable
growth as a result of less discounting and accelerate delivery of our
medium-term target of £100m+ revenue and a 10% margin.
Operational and Strategic Highlights
· Successful launch with Global-e, a world leading platform, enabling the
Company to transact and fulfil orders worldwide to over 60 countries in a
cost-effective manner. Sales data is being used to inform future international
opportunities based on where the Sosandar brand is performing well
· Product across all categories continued to resonate with customers with
particularly strong sales of summer occasion wear and holiday clothing in H1
FY24, with partywear and knitwear being standout categories in autumn to date
· Trading with well-established third-party partners has continued to be strong
with the success of the Sosandar product resulting in increased collaboration
with our partners, including new partnership with Freemans launched in
September
· The mobile app, which went live in July, has performed very well, with c70,000
downloads to date and generating already 10% of own site sales at higher
conversion rates than through mobile web browsing
Ali Hall and Julie Lavington, Co-CEOs commented:
"Over the past six months, we have made significant steps on our journey to
become a multi-channel retailer whilst also expanding the reach of the
Sosandar brand. We are delighted to have launched new partnerships with
Sainsbury's and Freemans, signed our first agreements with two large
prestigious international third-party partners and announced that we intend to
open our first own stores in Spring 2024.
"Our product remains the key driver of our success and keeps our customers
returning to us for their wardrobe needs. Throughout the period, we saw growth
across all product ranges with particular success in our summer occasion wear
and beach and swim ranges over the summer. In the lead up to Christmas we have
seen extremely strong sales across all categories with party wear, dresses,
tailoring, knitwear and smart trousers being standout items.
"Trading in the second half of the financial year to date has been
encouraging, in line with full year market expectations, with November a
record month of trading. This strong performance has been delivered across all
our channels.
"Looking ahead, we believe that the future is very bright as we take the
Sosandar brand to more customers across the UK and worldwide and move further
towards reaching our strategic goal of delivering £100m+ revenues and a
pre-tax profit margin of at least 10% in the medium term."
* Sosandar believes that market expectations for the year ending 31 March 2024
are currently revenue of £46.8 million and PBT of £0.1 million.
Presentations
Sosandar is hosting a webinar for analysts at 08:30 hrs GMT today. If you
would like to register, please contact sosandar@almastrategic.com
The Company is also hosting a webinar for retail investors at 12:00 today. If
you would like to attend, please register here:
https://bit.ly/SOS_H124_webinar (https://bit.ly/SOS_H124_webinar)
Enquiries
Sosandar plc www.sosandar.com (http://www.sosandar.com)
Julie Lavington / Ali Hall, Joint CEOs c/o Alma PR
Steve Dilks, CFO
Singer Capital Markets +44 (0) 20 7496 3000
Peter Steel / Tom Salvesen / Alaina Wong
Alma Strategic Communications +44 (0) 20 3405 0205
Sam Modlin / Rebecca Sanders-Hewett / Matthew Young sosandar@almastrategic.com
About Sosandar plc
Sosandar is one of the fastest growing women's fashion brands in the UK
targeting style conscious women who have graduated from lower quality,
price-led alternatives. The Company offers this underserved audience
fashion-forward, affordable, quality clothing to make them feel sexy,
feminine, and chic. The business sells predominantly own-label exclusive
product designed and tested in-house.
Sosandar's product range is diverse, providing its customers with an array of
choice for all occasions across all women's fashion categories. The company
sells through Sosandar.com and has a number of high value brand partnerships
including with Next, Marks & Spencer and J Sainsbury.
Sosandar's success has been built on an exceptional product range, seamless
customer experience and impactful, lifestyle marketing, all of which is
underpinned by combining innovation with data analysis. Our growth strategy is
focused on continuing to grow brand awareness and expand our addressable
market and routes to market, reaching customers wherever they wish to shop.
This is achieved both through direct to consumer channels and through chosen
third party partners.
Sosandar was founded in 2016 and listed on AIM in 2017. More information is
available at www.sosandar-ir.com (http://www.sosandar-ir.com)
Co-CEOs' Statement
Total net revenue for the period increased 6% year-on-year to £22.2 million.
Trading with our now well-established third-party partners, including Marks
& Spencer and Next, has been consistently strong throughout the period,
with all product categories performing well at full RRP.
The period under review saw us take important steps towards becoming a true
multi-channel retailer with the launch of a new partnership with Freemans,
working with Sainsbury's towards the launch of their brand-new fashion concept
stores which went live in early October, signing our first agreements with two
large prestigious international third-party partners: The Iconic in Australia
and The Bay in Canada, and announcing that we intend to open up our own stores
from Spring 2024. Ahead of our considered move towards a multi-channel model
aiming to significantly increase our addressable market, in Q2 FY24 we
trialled a reduction in price promotional activity across our own site. The
performance in the period reflects this trial which, as expected, resulted in
a material improvement in average order value and margin with the anticipated
reduction in site visits, orders and conversion. The planned roll out of our
store estate over the medium term is specifically designed to deliver
profitable growth as a result of less discounting and accelerate delivery of
our medium-term target of £100m+ revenue and a 10% margin.
The movement back to a pre-tax loss in the period was driven by the expected
reduction in revenue following the Q2 trial alongside higher overheads
primarily related to staff as we invested to ensure that we have the right
team in place to deliver the next stage of growth. We expect to remain
profitable for the full year and beyond.
Pleasingly, as had been expected, gross margin increased by 100bps year on
year. This includes the effect of an increase in the wholesale channel as a
proportion of revenue. Excluding the wholesale channel, gross margin increased
by 240bps. The trial in Q2 resulted in own site margin increasing by 570bps
year on year in the quarter, which has continued to improve over the first two
months of H2 FY24.
We would like to extend our thanks to our team, partners and suppliers for
their unwavering commitment and support of the business.
Creating product that women want to wear
As a clothing brand our product is the key driver of our success and keeps our
customers returning to us for all their wardrobe needs. We create head-to-toe
outfits at a mid-level price point that are high quality, long lasting, with a
wide selection of choice that covers all occasions and unique prints that are
designed in-house. Continuing to develop and invest in our product range is
vital to taking further market share.
We saw growth across all product ranges with particular success in our summer
occasion wear and beach and swim ranges over the summer. In the lead up to
Christmas we have seen extremely strong sales across all categories with party
wear, dresses, tailoring, knitwear and smart trousers being standout items.
Our routes to market
As stated above, our product is what makes Sosandar unique. As a clothing
brand, without exceptional product the success we have delivered to date would
not have been possible. In order to ensure that our customers can shop with
Sosandar whichever way they wish, we need multiple routes to market in order
to take full advantage of the £62bn UK clothing market. Working across our
own site Sosandar.com, our newly launched app, third party partners and our
own stores, it will become significantly easier for customers to interact with
our well-established brand.
1) Our own site
Sosandar.com remains the bedrock of the Sosandar hub. It is where our
customers access the complete Sosandar experience including the full extent of
our diverse range. This site is continually updated with new product and
content, and we are constantly working and investing to ensure that we
maintain a seamless customer experience through this channel.
Over the past six months we have further invested in the functionality of our
own site in order to enable more customers to buy from us, have more ways to
shop and provide a more personalised experience.
We launched our mobile app in July, and since then its performance has
performed very well, with c70,000 downloads to date and 10% of sales already
being generated through the app. We recently launched with Global-e, the
world's leading platform to enable and accelerate global, direct-to-consumer,
cross-border ecommerce. This enables us to transact and fulfil orders
worldwide to over 60 countries in a cost-effective manner and allows us to
build knowledge to inform our future international strategy.
2) Sustained momentum with third party partners
Trading with our third-party partners including M&S and Next has continued
to be exceptionally strong. Across our partners we sell at full RRP and we are
very proud to continuously deliver best-selling results across their plethora
of third-party brands.
Alongside our existing relationships, we were pleased to announce our new
third-party partnership with Freemans, part of the Otto Group, on a wholesale
agreement basis in September this year. We are very pleased with the promising
start to this partnership.
Post period end, after spending a thorough amount of time researching the
opportunities, we were delighted to announce new agreements with two large
prestigious international third-party partners: The Iconic in Australia and
The Bay in Canada, exceeding our previously stated target of launching with
one such partner in FY24. Since then, we are delighted to have already
launched with The Iconic and expect The Bay to launch in the latter part of H2
FY24. Third party partnerships, both domestically and internationally, remain
a key facet of our higher margin multi-channel model and we have a strong
pipeline of additional opportunities at various stages of delivery.
3) Becoming a fully integrated multi-channel business
Over the course of the past two years, consumer behaviours are changing and
recent independent market reports* have validated our assumption that shopping
habits have also changed, with 61% of consumers favouring in-store shopping,
while 39% shop mostly online. While consumer preferences for shopping online
or instore will of course oscillate, it is clear that the opportunity
available to multi-channel retailers far exceeds that of a strictly online
pureplay business and providing an instore offering is therefore an essential
next step in Sosandar's growth journey.
In order to fully capitalise on this increasing growth opportunity, embracing
a multi-channel strategy is key to capitalise on the sustained growth in
footfall over the last two years**.
In the first two weeks of October, the Sainsbury's brand-new fashion concept
stores launched with a wide range of Sosandar product selling well in all of
the initial nine stores. This partnership was the strategic starting point for
the evolution from pureplay to a multi-channel brand and will enable us to
provide our large but underserved demographic with more opportunities to
purchase our unique and diverse products.
By spring 2024, the Company expects to have opened its first stores in the UK
in affluent towns with thriving high streets where Sosandar customers
over-index. The same meticulous planning, risk mitigation, in-depth research
and successful execution that we have continually demonstrated will also be
applied to the controlled store roll out. Our own stores will deliver multiple
benefits both to our total addressable market, profitability and to the brand
as a whole. It will bring increased brand awareness, higher margins, more
efficient marketing and overall lower returns rates as we take our in-demand
product to more customers. The foundation of the anticipated success of this
strategy is the same tried and tested formula we've applied since foundation;
providing our customers with an exceptional product range that women want to
buy and seamless customer experience.
Our multi-channel model is tailored to meet consumer shopping habits and
allows to create a unified shopping experience for customers.
*Retail Economics UK Multi-channel Retail Report 2023:
https://www.retaileconomics.co.uk/retail-insights/thought-leadership-reports/uk-multi-channel-retail-2023-report-online-in-store
(https://www.retaileconomics.co.uk/retail-insights/thought-leadership-reports/uk-omnichannel-retail-2023-report-online-in-store)
**Store openings and closures H1 2023, PWC:
https://www.pwc.co.uk/industries/retail-consumer/insights/store-openings-and-closures.html
(https://www.pwc.co.uk/industries/retail-consumer/insights/store-openings-and-closures.html)
Current Trading and Outlook
Trading in the second half of the financial year to date has been encouraging
with November being a record month of trading. Net revenue for October and
November was £10.2m, a 16% increase versus the prior year and a significant
increase on the H1 FY23 exit rate of 6%. In addition, the effect of our
planned reduction in price promotional activity is starting to be seen with a
58.1% gross margin being delivered on our own site in October and November, in
comparison to 54.1% in the prior year, which continues to validate our planned
multi-channel model.
This strong performance has been delivered across all our channels. In early
November we achieved a new record day of trading on our own site. In addition,
we also delivered new records through our third parties in November. This
performance and continued demand shows the strength of our unique product
range in the key trading period before Christmas and, whilst acknowledging the
challenges that remain in the wider economy, we are trading in line with
market expectations for the full year.
We are excited about the next stage of our growth journey as we provide our
customers with more ways to engage and shop with Sosandar through our website,
app, third party partners and eventually our own stores. At every stage of our
journey so far we have evaluated and considered the opportunities available to
us in detail, resulting in us executing to plan whilst also mitigating risk.
Our success has been built on an exceptional product range, seamless customer
experience and impactful, lifestyle marketing, all of which is underpinned by
combining innovation with data analysis.
By spring 2024, we expect to have opened our first identified stores in the
UK. In addition, we will continue to drive sales through our own site and app,
further enhance our relationships with third-party partners and continue to
develop our international strategy. All of these objectives will move us
further towards reaching our strategic goal of delivering £100m+ revenues and
a pre-tax profit margin of at least 10% in the medium term.
The Sosandar brand remains well placed to take advantage of the multiple
opportunities available to us, and we believe that the future is very bright
as we take the Sosandar brand to more customers across the UK and worldwide
and continue on our journey to become one of the largest womenswear brands
globally.
Financial review
KPIs
6 months ended 30 September 2023 £'000 6 months ended 30 September 2022 £'000 Change
Revenue 22,163 20,950 +6%
Gross Profit 12,289 11,388 +8%
Gross Margin 55.4% 54.4% +100bps
PBT (1,349) 77
Own Site KPIs 6 months ended 30 September 2023 6 months ended 30 September 2022 Change
Sessions 7,713,554 7,770,346 -1%
Conversion rate 3.6% 4.5% -90bps
Number of orders 276,989 347,137 -20%
AOV £99.26 £89.71 +11%
Active customer base 256,312 254,601 +1%
Revenue and loss before tax
H1 FY24 revenue increased by 6% to £22.2m with a loss before tax of £1.3m
(H1 FY23 £0.1m). The period saw a managed reduction in price led
promotional activity during Q2 which impacted KPIs on our own site, most
notably reductions in sessions and conversion. This change was initially a
trial which has subsequently been extended into H2 FY24 and is resulting in
improved AOV and gross margin which will lead to mid-term sustainable
improvement in profitability.
Revenue through our third-party partners continues to grow strongly, in
particular with Next and Marks & Spencer. In addition, the wholesale
agreement with Sainsbury's commenced in the period with Sosandar product being
sold in nine physical stores from early October.
Gross Margin
The gross margin in H1 FY24 is 55.4% which increased by 100bps compared to the
same period in the prior year. This improvement includes the impact of an
increase in the proportion of revenue being generated through the wholesale
channel. Excluding the wholesale channel, gross margin increased by
240bps. The trial in Q2 resulted in own site margin increasing by 570bps
year on year in the quarter.
Operating Costs
Total operating costs increased by 21% to £13.3m (H1 FY23 £11.0m). The
largest element of this increase is from commissions retained by our
third-party partners which increased by 41% to £3.4m (H1 FY23 £2.4m),
reflecting the continued revenue growth on our key partner sites.
Excluding this increase, all other overheads increased by 15% from £8.6m to
£9.9m. This includes the strengthening of the Sosandar team during the
second half of FY23 to support the growth of the business across all sales
channels and an increase in activity driven fulfilment costs.
Balance Sheet
Net assets increased to £17.2m at 30 September 2023 compared with £10.6m at
30 September 2022. Cash at 30 September 2023 was £7.0m (30 September 2022:
£4.2m).
The cash balance was strengthened following the £5.4m equity raise in Feb
2023. The funds have been invested in greater levels of inventory in order to
drive further growth, in particular with our third-party partners including
the new wholesale agreement with Sainsbury's. Our plan to open our own
physical retail stores will be delivered from our existing financial
resources.
Inventory increased to £14.2m (H1 FY23: £13.5m) which reflects the planned
investment in stock to drive further growth. We have slightly more summer
stock to carry over into next year following the managed reduction in orders
through our own site in Q2. This is good stock and will complement new
ranges which will be purchased in early FY25.
Receivables increased to £3.8m (H1 FY23: £2.3m) due to the increase in
revenue from third party partners including the new partnership with
Sainsburys. There has been no change to payment terms with any of our
partners. All partners have continued to pay in full and on time
throughout the period.
Payables decreased to £9.2m (H1 FY23 £10.0m) reflecting the timing of
payments relating to the Autumn / Winter season compared to H1 2023. We
consciously brought stock in earlier than last year in order to ensure our new
season ranges launch on time, in particular with our third party partners
which results in payments being slightly earlier. We have continued to
increase the use of varied freight methods to balance lead time, cost and
environmental considerations which is also leading to improved margins, in
particular as freight rates have reduced year on year.
Non-current assets increased by £0.6m to £2.0m. Investment in the
development and launch of the Sosandar app and ongoing costs for the ERP
project result in intangibles being £0.4m (H1 FY23: £nil).
UNAUDITED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2023
6 Months to 30 Sept 6 Months to 30 Sept Year ended 31 March
2023 2022 2023
Notes £'000 £'000 £'000
Revenue 22,163 20,950 42,451
Cost of Sales (9,874) (9,562) (18,614)
Gross profit/(loss) 12,289 11,388 23,837
Other operating income - - -
Administrative expenses (13,342) (11,027) (21,654)
Share-based payment (137) (156) (311)
Depreciation and amortisation (141) (107) (235)
Operating profit/(loss) (1,331) 98 1,637
Finance costs (18) (21) (40)
Profit/(loss) before taxation (1,349) 77 1,597
Income tax credit/(expense) - - 284
Group profit/(loss) for the year (1,349) 77 1,881
Other comprehensive income - - -
Total comprehensive profit/(loss) for the period (1,349) 77 1,881
Earnings/(loss) per share:
Earnings/(loss) per share - basic and diluted, attributable to ordinary equity 5 (0.60) 0.03 0.84
holders of the parent (pence)
UNAUDITED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2022
6 Months to 30 Sept 6 Months to 30 Sept Year ended 31 March
2022 2021 2022
Notes £'000 £'000 £'000
Revenue 20,950 12,177 29,458
Cost of Sales (9,562) (5,297) (12,962)
Gross profit/(loss) 11,388 6,880 16,496
Other operating income - - -
Administrative expenses (11,027) (7,770) (16,470)
Share-based payment (156) (101) (255)
Depreciation and amortisation (107) (85) (317)
Operating profit/(loss) 98 (1,076) (546)
Finance costs (21) (1) (8)
Profit/(loss) before taxation 77 (1,077) (554)
Income tax credit/(expense) - - 412
Group profit/(loss) for the year 77 (1,077) (142)
Other comprehensive income - - -
Total comprehensive profit/(loss) for the period 77 (1,077) (142)
Earnings/(loss) per share:
Earnings/(loss) per share - basic and diluted, attributable to ordinary equity 5 0.03 (0.51) (0.07)
holders of the parent (pence)
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
As at As at As at
30 Sept
30 Sept
31 March
2023 2022 2023
Notes £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 367 - 52
Property, plant, equipment 339 297 355
Right of Use asset 592 658 584
Deferred income tax asset 696 412 696
Total non-current assets 1,994 1,366 1,687
Current assets
Inventories 14,216 13,489 12,361
Trade and other receivables 3,798 2,347 2,730
Cash and cash equivalents 6,981 4,205 10,576
Total current assets 24,996 20,041 25,667
Total assets 26,989 21,407 27,354
Equity and liabilities
Equity
Share capital 4 248 221 248
Share premium 4 52,619 47,089 52,619
Capital Reserves 4,648 4,648 4,648
Other reserves 1,360 1,068 1,223
Reverse acquisition reserve (19,596) (19,596) (19,596)
Retained earnings (22,126) (22,577) (20,773)
Total equity 17,157 10,853 10,620
Current liabilities
Trade and other payables 9,198 9,899 8,355
Lease liability 111 116 148
Total current liabilities 9,309 10,015 8,503
Non current liabilities
Lease liability 523 539 482
Total non current liabilities 523 539 482
Total liabilities 9,832 10,554 8,985
Total equity and liabilities 26,989 21,407 27,354
UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2023
6 Months 6 Months Year ended
to 30 Sept
to 30 Sept
31 March
2023 2022 2023
Notes £'000 £'000 £'000
Cash flows from operating activities
Group profit/(loss) before tax (1,349) 77 1,597
Share based payments 137 156 311
Depreciation and amortisation 141 107 235
Finance costs 18 21 40
Working capital adjustments:
Change in inventories (1,855) (6,182) (5,054)
Change in trade and other receivables (1,068) 148 (235)
Change in trade and other payables 843 3,138 1,595
Net cash flow from operating activities (3,133) (2,535) (1,511)
Cash flow from investing activities
Addition of property, plant and equipment (30) (235) (348)
Addition of intangibles (324) - (52)
Initial direct costs on right of use asset - - -
Interest paid - (18) -
Net cash flow from investing activities (354) (253) (400)
Cash flow from financing activities
Net proceeds from issue of equity instruments 4 - - 5,557
Lease payment (107) (55) (117)
Net cash flow from financing activities (107) (55) 5,440
Net change in cash and cash equivalents (3,596) (2,843) 3,529
Cash and cash equivalents at beginning of period 10,577 7,048 7,048
Cash and cash equivalents at end of period 6,981 4,205 10,577
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2023
Share capital Share premium Reverse acquisition reserve Capital redemption reserve Retained earnings Other reserves Total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 September 2022 221 47,089 (19,596) 4,648 (22,577) 1,068 10,853
Profit (Loss) for the period - - - - 1,804 - 1,804
Share-based payments - - - - - 155 155
Issue of share capital 4 27 5,873 - - - - 5,900
Costs on issue of share capital 4 (343) - - - - - -
Balance at 31 March 2023 248 52,619 (19,596) 4,648 (20,773) 1,223 18,369
Profit (Loss) for the period - - - - (1,349) - (1,349)
Share-based payments - - - - - 137 137
Issue of share capital 4 - - - - - - -
Costs on issue of share capital 4 - - - - - - -
Balance at 30 September 2023 248 52,619 (19,596) 4,648 (22,122) 1,360 17,157
Share capital is the amount subscribed for shares at nominal value.
Share premium represents the excess of the amount subscribed for share capital
over the nominal value of those shares net of share issue expenses.
Share based payments reserve relate to the charge for share-based payments in
accordance with International Financial Reporting Standard 2.
Retained earnings represent the cumulative loss of the Group attributable to
equity shareholders.
Reverse acquisition reserve relates to the effect on equity of the reverse
acquisition of Thread 35 Limited.
Capital redemption reserve represents the aggregate nominal value of all the
deferred shares repurchased and cancelled by the Company. The reserve is
non-distributable.
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
1. General Information
Sosandar Plc is a company incorporated and domiciled in England and Wales. The
Company's offices are in Wilmslow. The Company is listed on the AIM market of
the London Stock Exchange (ticker: SOS).
The financial information set out in this Half Yearly report does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The Company's statutory financial statements for the year ended 31 March
2023, prepared under International Financial Reporting Standards ("IFRS"),
have been filed with the Registrar of Companies. The auditor's report on those
financial statements was unqualified and did not contain statements under
Sections 498(2) and 498 (3) of the Companies Act 2006.
Copies of the annual statutory accounts and the Half Yearly
report can be found on the Company's website at
http://www.sosandar-ir.com/content/investors/annual-reports.asp
(http://www.sosandar-ir.com/content/investors/annual-reports.asp) .
2. Basis of preparation and significant accounting policies
This Half Yearly report has been prepared using the historical cost
convention, on a going concern basis and in accordance with IFRS as adopted by
the European Union, using accounting policies which are consistent with those
set out in the financial statements for the year ended 31 March 2023.
3. Segmental reporting
In the opinion of the directors, the Company has one class of business, being
that of a clothing brand with distribution across multiple channels including
online and physical stores. The Group's primary reporting format is determined
by the geographical segment according to the location of its establishments.
There is currently only one geographic reporting segment, which is the UK. All
costs are derived from the single segment.
4. Share capital and reserves
Details of ordinary shares issued are in the table below:
Ordinary Shares (£0.01)
Date Number of shares Issue Price £ Total Share Capital £'000 Total Share Premium £'000
At 31 Mar 2022 221,408,332 0.001 221 47,089
Shares issued: Fundraise Feb 23 26,818,181 0.001 27 5,873
Direct costs: Fundraise May 21 - (343)
At 31 Mar 2023 248,226,513 0.001 248 52,619
Shares issued: - - -
At 30 September 2023 248,226,513 0.001 248 52,619
Ordinary Shares (£0.01)
Date Number of shares Issue Price £ Total Share Capital £'000 Total Share Premium £'000
At 31 Mar 2021 192,268,122 0.001 192 41,592
Shares issued: Fundraise May 21 28,840,210 0.001 29 5,739
Shares issued: Warrants exercised Dec 21 300,000 0.001 - 45
Direct costs: Fundraise May 21 - (287)
At 31 Mar 2022 221,408,332 0.001 221 47,089
Shares issued: - - -
At 30 September 2022 221,408,332 0.001 221 47,089
5. Earnings per share: profit / (loss)
Basic loss per share is calculated by dividing the loss attributable to equity
shareholders by the weighted average number of ordinary shares in issue during
the period:
6 Months 6 Months Year ended
to 30 Sept
to 30 Sept
31 March
2023 2022 2023
(Loss)/ Profit after tax attributable to equity holders of the parent (£'000) 77 77 1,881
Weighted average number of ordinary shares in issue 224,738,344 221,408,332 224,738,344
Fully diluted average number of ordinary shares in issue 224,738,344 221,408,332 224,738,344
Basic and diluted earnings profit / (loss) per share (pence) (0.60) 0.03 0.84
6. Post balance sheet events
The Company had no post balance sheet events.
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