TIDMSOS
RNS Number : 2776O
Sosandar PLC
07 October 2021
Date: 7 October 2021
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Half Year Trading Update
A very strong first half with revenue up 184% year on year,
continued improvement in EBITDA and a record start to autumn
trading
Sosandar, the online women's fashion brand, is delighted to
provide the following trading update covering the six-month period
ended 30 September 2021.
Period highlights:
-- Revenue of GBP12.2 million, a 184% increase against
the same period in the prior year, and more than was
generated in the entirety of FY21
-- A record revenue month in September as demand accelerated
for new season product
-- Trading with third parties stepped up every month
through the period, with September a new record
-- Continued improvement in EBITDA loss
-- Continued success recruiting new customers and engaging
with the existing base:
* Website visits up 67% to over six million
* Active customers up 41% since March, representing the
addition of 56,000
* Repeat buyer order frequency up 14% to 3.85 times
* Conversion rate increased to 3.91% (H1 FY21: 2.58%)
-- Gross margin up to 56.5% (H1 FY21: 52.3%) reflecting
a higher proportion of full price sales compared with
the comparative period which was impacted by actions
taken as a consequence of Covid-19
-- Net cash at GBP7.3m (20 June 2021: GBP9.1m) reflecting
the execution of the plan outlined following the fund
raise in May 2021 to increase inventory in order to
meet growing demand from all customers including third
parties
-- Trading for the current year in line with market expectations
As reported at the time of the Full Year results in July 2021,
the first half began strongly as Covid-19 related restrictions
started to lift and momentum continued to build during the period.
The strong performance, with very rapid sell through of stock
across all categories, was seen on both the Sosandar website and
across third parties.
All KPIs in the business are trending well, demonstrating the
Company's continued growth and development as it becomes
increasingly able to capitalise on economies of scale, exploit
data-led learnings and cater to the needs of the Sosandar
customer.
Trading with third parties (M&S, Next and John Lewis) has
been very strong, with Sosandar product resonating very well across
all types of product category. As intended, the funds raised in May
2021 will help the Company to meet the proven demand from our third
party partners. The Company began to increase inventory levels
during September and intends to continue with this strategy over
the second half.
The Company has seen great results across a wide variety of
product categories including knitwear, dresses, leather, coats and
denim. The successful broadening of the product range, which has
been the focus over the last two years, is driving increased
conversion and repeat order rates. Early autumn sales have been
very strong as demand for 'going out' and work wear has increased.
The Company took the decision to bring in stock early for autumn,
anticipating early demand for partywear, coats, boots and knitwear.
Sequins, Christmas jumpers and fur coats are already best sellers.
The Company has retained a more equitable mix across all of its
product segments compared to pre-pandemic, increasing its
resilience against any market changes and enhancing appeal and
choice for all customers. Now that returns rates have normalised in
line with buying behaviour, the diversified category mix has also
proved to have a positive effect on returns rates which are at a
lower level than pre-pandemic.
The Company has a strong cash position, with net cash as at 30
September 2021 of GBP7.3m (31 March 2021: GBP3.9m). This reflects
the funds raised in May 2021 and a continued focus on cost control
balanced with investment for growth in particular in inventory
ahead of the second half.
Sosandar has not experienced any material impact from supply
chain disruption, maintaining a constant flow of stock to meet
customer demand. The Company is well stocked for the autumn season
across both its own site and third parties and has good visibility
of incoming goods. As the Company scales and increases its order
quantities it has seen margin growth, which has offset the small
degree of upwards pressure experienced on supply chain costs.
Sosandar remains mindful of the wider market disruption, is
constantly reviewing the situation and will take mitigating actions
as appropriate.
Despite the external pressures, with a strong first half and a
record start to autumn trading the outlook for Sosandar is very
positive. The Board therefore expects results for the full year to
be in line with market expectations.
The Company expects to announce its full interim results in
early December.
Conference call
Sosandar is hosting a Q&A call for analysts and investors
today at 09:00am to discuss the Trading Update. If you would like
to register for the call please follow this link:
https://bit.ly/SOS_H121_TU_webinar
Ali Hall and Julie Lavington, Co-CEOs commented:
"We are delighted to report another strong period for Sosandar
with enhanced sales delivered across our entire product range as
customers begin to return to the office and attend events. After
over a year in loungewear our customers are clearly enjoying a
return to fashion.
"With a substantial increase delivered in active customers,
repeat customers and conversion rate, we can see the benefits of
our marketing strategy, broadened range and operational
improvements flowing through. Our sales continue to see great
growth momentum both on the Sosandar website and with our third
party partners and we are very excited about the opportunity that
lies ahead for the Company."
Enquiries
Sosandar plc www.sosandar.com
Julie Lavington / Ali Hall, Joint CEOs c/o Alma PR
Steve Dilks, CFO
Singer Capital Markets +44 (0) 20 7496
Peter Steel / Kailey Aliyar 3000
+44 (0) 20 3405
Alma PR Limited (Financial PR) 0205
Susie Hudson / Sam Modlin / Molly Gretton sosandar@almapr.co.uk
This announcement contains inside information for the purposes
of the retained UK version of the EU Market Abuse Regulation (EU)
596/2014 ("UK MAR").
About Sosandar plc
Sosandar provide a one-stop online shop for style conscious
women who have graduated from 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
in-house.
Sosandar's offering includes a wide range of flattering woven
dresses, a market-leading denim collection and knitwear. The
Company has brand partnerships in place with Next, John Lewis and
Marks & Spencer.
Sosandar's growth strategy is to build brand awareness and
expand its customer base through developing exceptional products,
providing a seamless customer experience and using impactful,
lifestyle marketing activity. This is underpinned by combining
innovation with data analysis, which drives successful product
development and new customer targeting.
Sosandar was founded in 2016 and listed on AIM in 2017. More
information is available at www.sosandar-ir.com
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END
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