Sosandar shares climb 10% as focus on margin enhancement pays off

Mon, 13th Jan 2025 12:00

(Alliance News) - Sosandar PLC on Monday said it was trading in line with market expectations, with January providing "pleasing levels of full price sales".

The Cheshire, England-based online women's fashion brand reported a 15% decline in revenue to GBP12.2 million in the three months that ended December 31 from GBP14.3 million a year before, as Sosandar transitions away from price promotion activity to becoming "a true multi-channel retailer."

The company said its prioritisation of margin enhancement and profitability over revenue growth during the period has supported a continued positive movement in pretax profit, in line with its strategic focus.

Sosandar shares were up 10% at 6.90 pence on Monday morning in London.

Gross margin for its third quarter widened to 65% from 58% the prior year, with Sosandar saying the uplift is now "being delivered on a sustained basis". This provides a platform to drive both "sustainable and profitable cash generative growth over the long-term" towards its pretax profit target of GBP10 million per annum.

Sosandar said its overall trading remains in line with market expectations, cited as GBP40.5 million in revenue and GBP1.0 million in pretax profit for the financial year ending March 31. These figures compare with GBP46.3 million in revenue and a GBP332,000 pretax loss in financial 2024.

The AIM-listed retailer noted that January trading got off to a positive start with "pleasing levels of full price sales, despite the well-publicised challenging macro-environment."

Sosandar further added that it has inked two new lease agreements for its Bath and Harrogate stores and that its licencing agreement with Next PLC for a homeware range is on track and expected to launch this autumn.

By Christopher Ward, Alliance News reporter

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