LONDON - Sosandar plc (AIM: SOS), a UK-based women's fashion brand, has reported a series of positive financial developments for the six-month period ending September 30, 2024. The company announced a revenue of £16.2 million, a strong gross margin of 62.2%, and a reduction in pre-tax losses to £0.7 million from £1.3 million in the same period of the previous fiscal year.
The brand attributes its improved financial performance to a strategic shift away from price promotions, except during major sales events, and a focus on enhancing profit margins through careful cost management. Sosandar also reported robust net cash of £7 million, a decrease from £8.3 million as of March 31, 2024, reflecting investments in stock for the upcoming Autumn/Winter collection and the opening of its first three brick-and-mortar stores.
These stores, located in Marlow, Chelmsford, and Gateshead's Metrocentre, have shown strong trading and contributed to increased website traffic in their respective areas. A new store is also planned for Cardiff's St David's centre. This expansion into physical retail aims to tap into the UK's £60 billion clothing market transacted in stores annually.
In addition to the retail expansion, Sosandar continues to benefit from partnerships with major retailers such as Next and Marks & Spencer (OTC:MAKSY) in the UK, and has launched in-store at Arnotts in Dublin, Ireland, following online sales success.
Despite moderating its FY25 revenue expectations to £40 million, the company maintains its pre-tax profit expectations, citing continued margin strength and effective management of marketing and overhead costs. Co-CEOs Ali Hall and Julie Lavington expressed confidence in the brand's multi-channel retail strategy and the positive customer reception to their physical stores.
The company's current trading in October has shown revenue growth compared to the previous year, continuing the trend of strong gross margins as it approaches the seasonal peak. Sosandar's strategic goal remains to achieve a pre-tax profit of at least £10 million, based on a 10% pre-tax profit margin and revenues surpassing £100 million. The Board remains confident in the company's potential for sustained profitable growth.
This report is based on a press release statement from Sosandar plc.
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