REG - Sosandar PLC - Trading Update

SosandarAnnouncement

10/01/2024 07:00

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RNS Number : 1625Z  Sosandar PLC  10 January 2024

 Date:             10 January 2024
 On behalf of:     Sosandar plc ('Sosandar' or 'the Company')
 Embargoed until:  0700hrs

 

Sosandar plc

Trading Update

Strong performance across all channels in key trading period

 

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
provide the following trading update covering the three-month Period ended 31
December 2023.
 
 
 

Highlights:

 

 ·             A record quarter with revenue of £14.3m, up 23% year-on-year (Q3 FY23:
               £11.6m)
 ·             Gross margin 58.3% vs 56.8% in the prior year
 ·             Like for like gross margin, which excludes the increase of wholesale, was
               60.7% vs 57.3% in the prior year
 ·             Net cash of £7.7m as at 31 December 2023 (£7.3m as at 30 November 2023)

 

 

The Company is pleased to report that further to its announcement on 12
December 2023, the strong performance delivered in October and November
continued into December with all channels continuing to perform well.

 

The material improvement in gross margin reflects the planned reduction in
certain price promotional activity and continues to validate our multi-channel
strategy. In Spring 2024, the Company expects to have opened its first
identified store in the UK. In addition, the Company will continue to drive
sales through its own site and app, further enhance its relationships with
third-party partners and continue to further develop its international
strategy, after successful launches in Australia and Canada.

 

This performance and continued demand demonstrates the strength of the
Sosandar brand and unique product range in the key trading period before
Christmas. In the lead up to Christmas, the Company saw extremely strong sales
across all categories with party wear, dresses, tailoring, knitwear and smart
trousers being standout items.

 

The Group's performance in FY24 so far has served to validate management's
strategy to take the Sosandar brand to more customers across the UK and
worldwide.  This is moving the business towards reaching its strategic goal
of delivering £100m+ revenues and a pre-tax profit margin of at least 10% in
the medium term. The Board confirms that the Company continues to trade in
line with market expectations* for the current financial year and further
expects the current momentum to be sustained over the final quarter.

 

* 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.

 

 

Enquiries

 Sosandar plc                                         www.sosandar.com (http://www.sosandar.com)
 Julie Lavington / Ali Hall, Joint CEOs               c/o Alma Strategic Communications
 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 (mailto: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 and Marks & Spencer.

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)

 

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