Trading Update
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| Date: | 10 January 2024 |
| On behalf of: | Sosandar plc ('Sosandar' or 'the Company') |
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.
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