21 November 2018
Significant strides in sales growth delivered alongside improvements in efficiency
Trading in line with management's expectations
Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce its results for the six months ended 30 September 2018.
- Revenue increased 407% to £1.84m (6 months to 30 September 2017: £0.36m)
- Gross margin improved 9 percentage points to 55% (6 months to 30 September 2017: 46%)
- Gross profit increased 498% to £1.01m (6 months to 30 September 2017: £0.17m)
- Underlying EBITDA loss of £1.96m (6 months to 30 September 2017: £1.11m loss)
- Period-end cash balance of £2.6m (before the post period-end placing described below)
- Order growth of 446% to 43,979 orders
- Increased repeat orders by 615%
- Conversion rate increased by 107bps to 2.75%
- Customer database grew 320% to 84,500
- Increased the number of SKUs by 20% and broadened the size range
- More than doubled both Facebook and Instagram followings, and launched Instagram shopping
- Seamlessly re-platformed onto Magento 2 ecommerce platform increasing website functionality
- Now operating seven days a week with Clipper Logistics
- Costs as a percentage of revenue significantly decreased
- Successful placing raising £3.0m
- Record sales achieved in October 2018
Performance against KPIs
|6 months ended 30 September 2018||6 months ended 30 September 2017||Change|
|Number of orders||43,979||8,049||+446%|
|Average Order Value||£105.42||£96.78||+9%|
|As at 30 September 2018||As at 30 September 2017||Change|
Ali Hall and Julie Lavington, Co-CEOs, commented:
"We are delighted to be reporting another period of significant financial and operational progress for the Company as we have made steps forward across the business. We have set out a clear growth plan and are delivering on it. The exceptional growth in revenue, increased average order values and surge in repeat orders is evidence of how well we are engaging with an underserved market of women and testament to the quality and unique design of our products. It is pleasing that increasing sales have been matched by strong advances in efficiency throughout the business.
"Trading continues to be in line with management's expectations and sales momentum has continued post period, with strong trading in the autumn across all product categories including partywear. September and October delivered consecutive record months for revenue, as well as orders, traffic and conversion rate. We are very excited by Sosandar's long term prospects and look forward to the rest of the financial year with confidence."
|Julie Lavington / Ali Hall, Joint CEOs||c/o Alma PR|
|Shore Capital||+44 (0) 20 7408 4090|
|Patrick Castle / Mark Percy / James Thomas|
|Alma PR Limited (Financial PR)||+44 (0) 208 004 4217|
|Rebecca Sanders-Hewett / Josh Royston / Susie Hudson / Sam Modlinfirstname.lastname@example.org|
About Sosandar PLC
Sosandar is an online womenswear brand, specifically targeted at a generation of women who have graduated from throwaway fashion and are looking for quality, affordable clothing with a premium, trend-led aesthetic. This is a section of the market that is currently being underserved.
Sosandar was launched in September 2016. The Sosandar business model is built around using trend-led, exclusive designs produced in-house and then manufactured using a variety of global suppliers. Sosandar caters for a growing market of fashion conscious women, while utilising an outsourced logistics provider that can support its planned growth over the coming years.
Sosandar's founders are Ali Hall and Julie Lavington, who previously launched and ran high street fashion magazine Look, as editor and publishing director respectively. They have a combined experience of over 35 years in the fashion industry, including in the design, manufacture and sale of fashion ranges for some of the UK's high street retailers, including Debenhams, Office, Oasis and JD Williams.
More information is available at www.sosandar-ir.com
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