Full Year Results and Trading Update

A year of margin growth and improvement in profitability, with a return to revenue growth in Q1 F

Sosandar PLC (AIM: SOS), the women’s fashion brand, creating quality, trend-led products for women of all ages, is pleased to announce its financial results for the year ended 31 March 2025 (‘FY25’).

FY25 Financial Highlights

• Revenue of £37.1m (FY24: £46.3m) reflecting a deliberate transition away from price promotional activity in order to improve gross margin.
• Improved gross margin of 62.1%, up from 57.6% in the prior year
• This gross margin delivered an improvement in profitability despite the reduction in revenue. 
• Adjusted profit before tax of £0.2m (£0.3m loss FY24) excluding the one-off costs associated with a move of warehouse (£0.2m).
• Maintained a robust net cash position of £7.3m despite self-funding the rollout of our own stores (£8.3m as at 31 March 2024).

Note: The Group is reporting an audited £0.1m loss before tax for FY25. This differs from the £0.5m profit before tax that the Group anticipated reporting for FY25 in the trading update released on 16 April 2025, the difference being due to adjustments arising from the audit including £0.4m associated with a stock write down and £0.1m of additional one-off costs associated with the move of warehouse.

FY25 Operational and Strategic Progress

• Successfully transitioned Sosandar.com away from price promotional activity to drive improved gross margins.
• Trading with well-established third-party partners was strong during the period.
• Opened first six stores in FY25 as the Company transitioned to becoming a full-price multi-channel retailer with market town stores on a quicker trajectory towards profitability than shopping centre stores.
• Licensing agreement signed with NEXT for a Sosandar homeware range. This followed the continuing success of Sosandar’s clothing range sold through NEXT.
• Moved to a new third-party warehouse provider in February, well suited to Sosandar’s growth ambitions.

Post-period Trading (Q1 FY26)

• Return to revenue growth with net revenue of £9.5m, a 15% increase versus the prior year (Q1 FY25: £8.2m). This is despite no sales through Marks & Spencer, our second biggest third-party partner, since mid-April due to their cyber incident.
• Importantly, own website also returned to revenue growth with a 15% increase versus the prior year, driven by an increase in traffic, conversion and number of orders from both new and existing customers.
• Continued improvement in gross margin to 65.0%
• Q1 FY26 has continued to be cash generative, with the cash position standing at £8.0m as at 30 June 2025, up from £7.3m at period end.
• Continuing to take learnings from initial store openings with focus on getting the six stores opened so far to profitability and pausing before opening any further stores.
• Following the cyber-incident, the Company is cautiously anticipating lower revenue through Marks & Spencer for the rest of FY26. This, alongside the decision to focus on the existing store portfolio, means that the Company is taking a prudent view and is therefore modifying FY26 guidance. The Company now expects FY26 revenue to be up 18% to £43.6m, with an expected profit before tax of £0.4m*.

Ali Hall and Julie Lavington, Co-CEOs commented:

“During the last year we’ve strengthened the foundations of the business, which will enable us to deliver our growth and profit ambitions going forwards. Taking the decision to reduce price promotions has resulted in an expected reduction in revenue but significantly improved margins and cash generation which, in turn, has allowed the Group to maintain a robust balance sheet and self-fund its growth plan.

The opening of our first stores was a milestone for Sosandar, and we are pleased with how we have brought our brand to life in the physical retail environment. We have taken clear learnings from the trajectory of our stores in market towns versus shopping centres and are focused on getting our existing portfolio to profitability before opening any further stores. This decision, alongside the continuing impact from the Marks & Spencer cyber incident on our third-party sales, means we are moderating our expectations for revenue and profit growth in the current year.

Nonetheless, we believe we are now at an inflection point, with the foundations laid for profitable, cash generative growth, and we have returned to revenue growth in Q1 FY26. We will continue to leverage our brand equity and scale the business through our multiple channels and are excited for what lies ahead for Sosandar.”

*Prior to this announcement, Sosandar believes that market expectations for the year ending 31 March 2026 were revenues of £46.2 million and adjusted PBT of £1.5 million.