Member Info for K0sh

Answer was yes!

Looks like SOS is back in play lads.

Time to load up now?

It's only SOS buying It's own shares stopping the price from collapsing

Good summation.

No indication of how their homewares market went

Normally buy and sells like that are to crystallise a loss or gain for taxation purposes

What the heck happened?

Let's see if a huge sell goes through tomorrow

With £20m in the bank, and at a modest interest rate of 3% would result in a profit of £0.6m.

So they are hardly performing.

Thoughts?

But spread remains at 5.5 and 6.5 so they must have found ready buyers

I believe Octopus is divesting, there will be an overhang until they are done.

Pt 2

Increased flexibility

Without this restriction, the board has more options for returning value or structuring future capital actions.

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Cleaner balance sheet in terms of reserves

Sometimes having large non-distributable reserves is more of a legal/technical block; this frees up some accounting flexibility.

Things to consider / risks

No guarantee of dividends or buybacks

Even with the legal ability, the company still needs sufficient profits and cash. Just because the reserves are distributable doesn't mean the board will (or should) distribute them if doing so would hurt operations.

Court approval risk

The Court could impose conditions, require undertakings, or even refuse, if it considers that creditors could be prejudiced. If that happens, the timeline could slip or the proposal may be modified.

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Current losses

The company still has substantial accumulated losses. The capital reduction doesn’t erase those losses; it changes what is legally usable going forward.

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Shareholder vote needed

If shareholders don’t approve, nothing happens. So there is scope for the proposal to be rejected.

No immediate cash benefit

This is a structural / legal change. You don't get cash in hand just from this, nor any immediate return. The benefit is future flexibility.

Overall take

In short: this is a positive structural change. It removes a legal obstacle that is preventing the company from returning capital to shareholders (via dividends or buybacks). If you believe that Sosandar will improve its profits and cash flow, this gives the board flexibility to reward shareholders in future. But it's not a guarantee of value being returned — it's more about enabling possibilities.

From ChatGPT

Here’s a breakdown of what the Sosandar plc notice means for investors — what’s being proposed, why, and the likely effects. If you like, I can also pull out the risks or pros/cons more sharply.

What is being proposed

Sosandar intends to carry out a capital reduction by canceling its share premium account.

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The share premium account currently holds about £52.62 million.

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By cancelling that account, the company wants to convert that into distributable reserves. After the change, distributable reserves would be about £13.34 million.

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Why Sosandar is doing this

Under UK company law (Companies Act 2006) and accounting standards, they currently cannot pay dividends, buy back shares or make distributions, because they lack distributable reserves.

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They have “retained losses” of about £39.28 million as of their last audited accounts (to 31 March 2025), meaning their accumulated losses exceed positive reserves that could be used for distributions.

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They also have a large share premium account, which is non-distributable under law, meaning they can’t use that for dividends, etc. Cancelling it would free up value for shareholders.

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What’s required

Shareholder approval via a special resolution, needing at least 75% of votes by those attending or voting by proxy at the General Meeting.

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Court approval (High Court of Justice) to confirm the capital reduction.

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The proposal includes that creditors’ interests are considered. If necessary, the Court may require safeguards (such as creating a special reserve) if there is a risk to satisfying creditor claims.

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Timeline

General Meeting: 18 September 2025 at 10:30 AM.

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Proxy deadline: 16 September 2025 at 10:30 AM.

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Court hearings (initial directions hearing around 26 September; main hearing around 14 October).

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Expected effective date: 16 October 2025 (assuming all approvals in place).

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What this means for investors

Here are the implications, both positive and things to watch out for:

Potential benefits

Ability to pay dividends or buy back shares in future

Opening up distributable reserves means the company could resume paying dividends or do share buybacks, if cash flow and profitability allow. This gives shareholders more potential to receive returns.

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So, where does or did the £52.6m come from. Looks like a paper exercise?

I have over a million shares. Was intending to buy a million more but my USA shares took a dive.

Did any one attend the Q&A the other week?

I feel it is oversold.

If it gets any cheaper, I will fill my boots.

It has been a year since they stopped discounting which caused the reducing turnover. This will shortly start showing increased turnover and improving margins should double whammy the bottom line.

All IMHO etc

Sudden large volume in trades yesterday and shares down 10% is the clue.

Notice of trading update today.

Bad news on the way?

I'm guessing next TU will be in January, going by previous RNS

Being walked down. Mightveven get into the teens.

When I sold at 38p, I was kicking myself when it then went on to 40.

But now I'm happy I sold.

Keeping a close eye and waiting for 20p or less.