Latest Results

Interim Results

Successful year of revenue growth followed by agile response to Covid-19 and strong current trading

Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce its financial results for the year ended 31 March 2020. In addition, the Company is pleased to also provide an update on trading in the current financial year.

The Company is delighted with trading at the start of its current financial year. In Q1 the business successfully increased year on year revenue by 54% whilst simultaneously reducing operating costs by 71% to help drive a 69% improvement in its loss position.

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Current Trading 
  • Q1 performance has continued during July:
    • Revenue up 57% year on year
    • Margin of 55.5% and operating costs reduced by 84% vs prior year
    • 83% improvement in net loss position vs prior year
    • Year to date Returns of 38% vs 50% in prior year, driven partly by product mix, but also by a shift in customer behaviour across all product categories. Even as returns begin to normalise again, we are seeing returns well below last year’s levels
    • Active customers up 98% vs prior year
  • Speed at which the Company has adapted to unprecedented changes in the market demonstrates the agility and versatility of the business model
  • Strength in current trading underpins confidence in carefully increasing marketing activity at the end of Q2 in order to enhance customer acquisition activity
  • Strong cash position of £4.34m as at 31 July 2020 demonstrates continued careful cost management
  • Contracts signed with John Lewis and Next to launch on their website platforms in Q2
  • Customer base up 8% up since year end whilst reducing average monthly marketing spend by 85%
FY2020 Financial Highlights
  • Revenue growth of 103% to £9.03m (FY2019: £4.44m)
  • Gross margin of 48.5% (FY2019: 55.5%), impacted by intense period of customer acquisition with first order customer promotions alongside actions to address the impact of Covid-19 in the final month of the year
  • EBITDA loss of £7.66m, including an exceptional, non-cash, accounting adjustment of £0.37m for share-based payments (FY2019: £3.49m), reflecting investment in the team, supply chain and marketing which delivered strong top line growth and has proven critical to positive trading performance during lockdown
  • Year-end cash of £5.25m (FY2019: £3.65m), which reduced to £4.42m at the end of April 2020 due to the unwind of committed spend
FY2020 Operational Highlights
  • Investment in team, supply chain and marketing resulted in:
    • 88% increase in new styles, enhancing choice for customers
    • 119% increase in suppliers across seven countries, reducing supply chain risk
    • 129% increase in customer database
  • Active customer growth of 111% to 131,811 (FY2019: 62,214) showing continued ability to recruit and retain customers
  • 128% increase in web visits to 8.03 million (FY2019: 3.51 million)
  • 108% increase in orders to 214,487 (FY2019: 102,967)
  • Conversion rate of 2.67% (FY2019: 2.92%) reflects longer lead time of TV customer acquisition
  • Average order value (AOV) of £97.14 (FY2019: £103.19) predominantly due to high levels of new customer acquisition with first order discounts, and milder winter weather impacting product mix
FY2020 KPIs

 Year ended 31 March 2020Year ended 31 March 2019Change

Sessions

8,032,355

3,518,756

+128%

Conversion rate

2.67%

2.92%

-25bps

Number of orders

214,487

102,967

+108%

AOV

£97.14

£103.19

-6%

Active customers

131,095

62,214

+111%

Repeat order rate

1.69

1.66

+2%

 

Ali Hall and Julie Lavington, Joint CEOs, commented:

“We’re delighted to report another year of growth, and one in which we achieved a significant shift in terms of customer base and infrastructure, providing stronger foundations for continued future growth. This proved especially valuable during lockdown where having a larger base of customers, combined with an enhanced product offering, allowed us to navigate difficult trading conditions, growing our customer base further and increasing their order frequency whilst preserving cash. This is testament to the brand and the market opportunity we identified.

We’re incredibly proud of the team for their hard work and dedication in unprecedented conditions and grateful to our supply chain and customers for their continued support.

The resilient performance achieved throughout Q1 has continued into Q2 of our current financial year. Our increasing confidence underpins our decision to begin increasing marketing spend with careful, controlled investment into customer acquisition from September to November, subject to any further impact of Covid-19.

We remain cautiously optimistic about the coming months and more excited than ever about the longer-term prospects for Sosandar.”

CHAIRMAN’S STATEMENT

Notwithstanding the unprecedented impact of the COVID pandemic at the end of the period, the year to 31 March 2020 was another period of strong growth for Sosandar, with the Group again increasing in sophistication as we made good progress towards our vision of becoming a global one-stop online destination for fashion forward women.

We diversified our supplier base, entered the world of TV advertising and were delighted to win several prestigious industry awards. We also began forging relationships with retail stalwarts such as Next and John Lewis, reaching commercial agreements with both post-period end. Just four years on from its foundation, the business has truly transformed into an emerging brand leader in our market demographic.

COVID-19

We were forced to change course in the last few weeks of the end of the financial year as the impact of the COVID-19 pandemic began to take hold. Since that time our focus has necessarily shifted to the ongoing management of a business facing unprecedented external challenges.

I have seen first-hand the lengths our team has gone to over this time in order to maintain not only a fully functional business, but one that has continued to perform well, growing sales whilst under extremely testing circumstances. I applaud them for their hard work and innovation.

The challenges we have faced and overcome demonstrate the strength of our model and offering. We were able to move rapidly to change stock in response to demand, our online capabilities lent us an advantage throughout lockdown, and our strong relationship with our loyal customer base has been invaluable as we kept the Sosandar community spirit high, our product offering fresh, and increased repeat sales.

Strengthened financial position

We were pleased to complete two placings in the period, raising £7 million in July 2019 and £5 million in February 2020. The funds have been used to accelerate the growth of the business to great effect, securing a record performance for the Group this year, a 103% increase in revenue and 129% increase in customer base. The Board would like to take this opportunity to again extend its thanks to the support shown from new and existing shareholders.

Our people

I would like to take this opportunity to thank Ali, Julie and our incredible executive team. They have shown great skill in leadership and once again demonstrated their passion for the business over the past year, as well as through the challenging environment since. Similarly, my fellow board members are due our appreciation for their calm, clear and committed input, particularly in recent months when we have all been navigating uncharted territory. 

My particular thanks go to James Bowling, our Head of Finance, who has been with the business since our early days and will be leaving us to pursue other opportunities in September. He has been incredibly important in building the company up to where it stands today. We also welcome the appointment of Stephen Dilks, who will be stepping into the Finance Director role. He has extensive experience in our sector and we look forward to benefitting from his knowledge going forward.  

We must acknowledge that it has not been an easy time for our team, but I want to take this opportunity to thank them for their dedication, hard work and ongoing enthusiasm for our business and customers.

Outlook

The future remains uncertain, and we are ready to react to changes in the external environment. We have proven, through the pandemic, that we are a genuinely agile, responsive business. We have shown the level of control the Group has over its growth trajectory and with broad signals giving us confidence it is now time to begin cautiously pressing down the accelerator pedal once more.

Our long-term focus has not wavered and continues to be on the development of our product, infrastructure and service, alongside most importantly, further building our customer base.

There remains a huge opportunity ahead of us and numerous potential opportunities for future expansion. Our ambition is for Sosandar to be a long-term, sustainable success and, notwithstanding the challenging environment, we are well-placed to continue building the business throughout the next year towards this goal.

CO-CEO’S STATEMENT

The year to 31 March 2020 reflects a period of trading largely unaffected by the disruption and uncertainty caused by COVID-19. The strong progress made both operationally and financially shows there is a clear demand for the Company's unique offering in the market.

Since the outbreak of COVID-19, despite the challenges faced, as an online-only business the Company has been able to react quickly and deliver continued revenue growth in the first quarter of the new financial year and into current trading.

Vision and ambition

Our vision is to be a global one-stop online destination for a new generation of fashion forward women who have graduated from fast fashion brands. We aim to build Sosandar into the go to fashion destination for all occasions combining exceptional product with a first-class customer experience.

Our strategy

Sosandar is focused on creating fashion-forward products for a generation of women overlooked by existing fashion brands, and this offers a significant untapped opportunity - a demographic that spends £3.7bn per year on fashion.

Our typical customer has a high disposable income and is very fashion conscious. She is looking for quality, affordable clothing with a premium, trend-led aesthetic for all areas of her life.

Our strategy is to expand Sosandar's customer base and build our brand awareness through developing exceptional products, providing a seamless customer experience and continuing to expand our highly successful online and offline marketing activity. This is underpinned by combining our creativity with gathering and analysing data on shopping habits, trends and customer preferences to drive product development and effectively target new customers.

Overview

We are delighted to report revenue for the year of £9m up 103% year on year. Our customer base continues to be very engaged with the brand demonstrating the ongoing strength of our products across the entire range, with repeat orders up 144% and active customer base up 111%. Supported by our marketing strategy, the period saw continued growth in customer numbers with new customers up 67% and orders up 108%. Returns remained flat at 50%.

This strong growth in new customers was driven by the Group's strategic decision to invest and focus marketing spend throughout Q2 and Q3. TV advertising naturally has a slower conversion rate in comparison to social media and brochures, which resulted in the Group's conversion rate decreasing by 25bps. Average order value for the period was down 6%, reflecting better than expected winter weather and the impact this had on product mix.

Gross margin decreased 700bps to 48.5% driven by the discounting used during the initial period of lock-down and stock provision, alongside the planned first order discounting following the period of intense customer acquisition in Q2 and Q3.

Key operational developments

Throughout the period we continued to make good progress in building on our base from which Sosandar can grow, looking towards achieving our vision of becoming a global one-stop online destination for fashion forward women.

Following the oversubscribed placing of £7 million (gross) in July we were able to accelerate our growth through strengthening our design capability, widening our product range and trialling additional marketing channels. These activities directly resulted in increased customer acquisition alongside continued growth from our ever-expanding base of loyal existing customers. This investment quickly saw a return as we delivered record periods of trading in September, October and November, with October and November delivering net revenues of over £1 million per month.

September also saw us begin to use TV advertising and start to trial the use of out-of-home digital media for the first time. This included testing in different TV regions, channels and programmes with re-investment into those showing the best engagement versus cost ratio, and a test with digital panels across escalators at key London train and tube stations. These marketing initiatives significantly increased brand recognition and awareness and will provide the basis of our learning and data as we begin to reinvest in customer acquisition.

This period of customer acquisition also created significant growth in our customer database which increased by 129% enabling communication with a much larger database in a cost effective way through email and social channels. This proved especially important during the COVID lockdown as we were able to significantly reduce marketing spend and trade off the customer database and prospects acquired, especially in the second half of the year.

We were conscious that in order to become a one-stop shop for fashion forward women we needed to further strengthen our design capability and widen our product range. Throughout the year, we made investments across all areas, including design, buying, merchandising and garment technology which resulted in our product range doubling year on year. This widening of the range has come through the additions of more choice within product types, and new categories such as denim, knitwear, footwear and accessories. In order to support the broadening product range we also expanded our supplier base substantially.

As a result of our increased product range and as testament to the quality of our product, third party interest to stock our clothes has increased. We have been trading on SilkFred for 19 months, which has allowed us to successfully increase brand awareness with a broad range of customer demographics. More recently we are delighted to also have reached agreements with household names John Lewis and Next with capsule collections being released on their websites in Q2 FY2021. This will further expand Sosandar’s brand awareness to their significant customer bases as well as offering an additional channel to generate sales.

Response to COVID-19 and Q1 performance

The COVID-19 pandemic has had a profound impact on the trading environment in which we operate. Our focus throughout this time has been and continues to be on ensuring the health and safety of our colleagues whilst also ensuring that Sosandar remains well placed to deliver on its long-term growth ambitions. In order to achieve this the Board took a number of actions to manage short term costs. These included:

  • A substantial reduction in its planned marketing spend in the short to medium term, in order to focus on repeat orders from the Group's existing customer base, rather than new customer acquisition.
  • Stock levels being carefully managed with new stock being procured in line with demand. Sosandar's flexible supply base enabled the Group to adapt production plans very quickly to changes in consumer demand with continued use of the test and repeat strategy and minimal initial order quantities helping to reduce stock risk.
  • Warehousing and fulfilment costs successfully flexed to the changing demand needs as the Company continues to benefit from the expertise of Clipper Logistics.
  • All discretionary expenditure frozen.
  • Approximately 60% of the workforce furloughed initially with the majority of the team of 33 no longer furloughed, with some part time.
  • Reductions made to PLC Board remuneration.

Despite the drastically different trading environment and our decision to reduce marketing spend we performed resiliently throughout April, May and June with total revenue in Q1 increasing 54% year on year. This demonstrates the strength of our business model and continued demand for our products from our highly engaged customer base.

Demonstrating our ability to convert prospects that have been established over time we saw a 24% increase in new customers over the quarter, and robust growth in return customers, demonstrating the longer-term impact of our acquisition marketing strategy in previous periods, and the benefits of holding a larger database.

Pleasingly in June we recorded results very close to breakeven through a combination of growth in sales, significantly decreased marketing spend and a strong margin from full price sales.

Outlook

The resilient performance throughout Q1 has continued into Q2 with revenue in July up 57%. The lockdown period has proven how important our customer database, and their loyalty, is to performance. Therefore, as lockdown restrictions ease we will begin cautiously increasing marketing spend to continue this customer base growth. We will also continue to invest in new products whilst maintaining the agility of decision making that has been vital in recent times to react to such sudden changes in market conditions.

Notwithstanding the continued uncertainty in economic outlook we believe there is a significant market share opportunity within our demographic, especially with the lockdown period escalating growth in online retail.  Combined with our growing and loyal customer base, an in-depth knowledge of our customers’ changing needs, and our ability to quickly adapt to whatever is thrown at us we remain confident in what the future holds for Sosandar.

 

Financial Review

KPI's

 Year ended 31 March 2020 £'000Year ended 31 March 2019 £'000 Change
Revenue £9,027£4,440 +103%
Gross Profit £4,381£2,465 +78%
Gross Margin 48.5%55.5% -700bps
Operating Loss £(7,814)£(3,546) -120%
Adjusted Operating Loss1£(7,439)£(3,470) -114%
EBITDA £(7,663)£(3,485) -119%
Adjusted EBITDA1 £(7,288)£(3,409) -114%
1adjusted to reflect exceptional non-cash, accounting adjustment for share-based payment in 2020
The comparatives have not been adjusted for the impact of the adoption of IFRS 16 as at 1 April 2019
 Year ended 31 March 2020Year ended 31 March 2019 Change
Sessions 8,032,3553,518,756 +128%
Conversion rate 2.67%2.92% -25bps 
Number of orders 214,487102,967 +108%
AOV £97.14£103.19 -6%
Active customers 131,09562,214 +111%
Repeat order rate 1.691.66 +2%

 

During the financial year we have invested into all areas of the business, building on the momentum of previous years and making sure infrastructure is in place to achieve continued future growth and fully exploit the market opportunity that exists.

One area of investment was marketing, expanding on the successful mediums established in prior years and trialling new areas, especially TV. This investment successfully delivered 128% increase in web visits, 108% increase in orders and 103% increase in revenue. TV also proved especially successful in building our customer database which increased 129% providing a stronger base on which to build in future years, driving efficiencies as the proportion of orders from repeat orders increases.

The increased investment in TV changed the dynamic of the traffic to the website. Existing channels such as social and direct mail have a high level of direct response with intention to purchase. TV has different characteristics driving high levels of traffic but with lower intention to purchase with customers exploring the website for the first time and signing up for newsletters rather than making a purchase immediately. As a result of the growth in TV investment and change in marketing mix, conversion decreased slightly but brand awareness and website traffic has greatly increased.

The other area of investment was in people to expand product offering and enhance choice for the growing customer base. This included expansion of the design team which helped the business to test and expand into areas such as denim and loungewear, and increase the number of new styles by 88%. Increased choice helped to recruit and retain customers with active customer base up 111% and order frequency up 2%.

To help support the enhanced product choice, investment has also been made into the sourcing and merchandising teams to expand the supplier network by 119% across seven new countries. This provided access to new fabric types and helped diversify risk whilst also providing price competition within the supply chain.

As a result of this investment operating expenses increased by 99%, but decreased as a percentage of revenue, with the costs of growth offset by underlying efficiencies and economies of scale. The importance of a diversified supply base and increased customer database were underlined during the COVID pandemic. The expansion of supply chain allowed for consistent delivery of product and quick shift to more casual ranges. The larger database allowed conversion of prospects and orders from repeat customers acquired pre year end.

Expanding into new areas meant there was a shift in product mix which combined with a milder winter period than the previous year meant that proportionately higher sales of lower price product impacted average unit values and ultimately average order value (AOV) which decreased 6% on the year. AOV was also impacted by a significant increase in customer acquisition with new customers up 67% on prior year and many of these new customers utilising first order discounts.

This growth in new customers also impacted margin as did establishing new relationships with suppliers and small order quantities on the new product areas. Discounting and provisions as a result of COVID at the end of the year contributed to margin reductions year on year but after the initial impact of the pandemic margins have returned to prior year levels.

The success of the business meant that vesting conditions were activated during the year creating an exceptional, non-cash, share based payment charge of £375k (2019: £76k) impacting the loss position for the year.

Going into the new financial year the Company had a cash balance of £5.3m and healthy stock levels which have helped Sosandar trade through the changing market conditions resulting from the global pandemic. The foundations that have been built over recent years have put the Company in a strong position going forward and helped achieve significant cost efficiencies in the first quarter reflecting the agility of the business model. Whilst investment will start to increase in a controlled and prudent manner, the Company will continue to benefit from the more established customer database and infrastructure which has been developed throughout the year.

Consolidated statement of income and other comprehensive income
For the Year Ended 31 March 2020

  Year ended
31 March
2020
Year ended
31 March
2019
 Notes £’000 £’000
   
Revenue from contracts with customers  9,027 4,440
Operational costs  (4,646) (1,975)
Gross profit 4,381 2,465
Administrative expenses  (11,662) (5,874)
Share based payment  (375) (76)
Depreciation and amortisation  (151) (61)
Operating loss4 (7,807) (3,546)
Finance income 5 3-
Finance costs 20 (10) -
Loss on ordinary activities before taxation  (7,814) (3,546)
Tax on loss on ordinary activities 7 - -
Loss for the year  (7,814) (3,546)
   
Other Comprehensive income --
 
Total Comprehensive loss for the year (7,814) (3,546)
 
Attributable to:
   
Equity holders of the parent  (7,814) (3,546)
    
Group loss for the year  (7,814) (3,546)
    
Total comprehensive loss for the year (7,814) (3,546)
 
Loss per share:
   
Loss per share – basic and diluted, attributable to ordinary equity holders of the parent (pence)8 (5.14)(3.19)
Loss per share - basic and diluted, from continuing operations (pence) 8 (5.14)(3.19)

Consolidated Statement of Financial Position
As at 31 March 2020

  As at 31 March
2020
As at 31 March
2019
 Notes £’000 £’000
Assets   
Non-current assets   
Intangible assets 9 198 163
Property, plant and equipment 10 282 147
Total non-current assets 480 310
    
Current assets   
Inventories 11 3,810 1,037
Trade and other receivables 14 1,001 366
Cash and cash equivalents 15 5,333 3,645
Total current assets 10,144 5,048
Total assets 10,624 5,358
    
Equity and liabilities    
Equity    
Share capital 16 192 116
Share premium 16 41,592 30,703
Capital redemption reserve 16 4,648 4,648
Other reserves 17 482 107
Reverse acquisition reserve 16 (19,596) (19,596)
Retained earnings 18 (19,414) (11,600)
Equity attributable to owners of the parent  7,904 4,378
    
Total equity  7,904 4,378

Liabilities
Lease liability

 

 

20

 
 
49
 
 
-
Non-current liabilities  49 -
Trade and other payables 19 2,594 980
Lease liability 20 77 -
Total current liabilities 2,671 980
Total liabilities 2,720 980
Total equity and liabilities  10,624 5,358

Consolidated Statement of Cash Flows
For the Year Ended 31 March 2020

  Year ended
31 March
2020
Year ended
31 March
2019
 Notes £’000 £’000
Cash flows from operating activities  
Group loss for the year (7,814) (3,546)
Share-based payments 17 375 76
Depreciation and amortisation 9 & 10 151 61
Net finance costs  7 -
Working capital adjustments:    
   Change in inventories  (2,773) (506)
   Change in trade and other receivables  (635) 112
   Change in trade and other payables  1,614 59
Net cash flow from operating activities (9,075) (3,744)
    
Cash flow from investing activities    
Addition of property, plant and equipment, and intangibles 9 & 10 (129) (143)
Bank interest received  3 -
    
Net cash flow from investing activities  (126) (143)
   
Cash flow from financing activities    
Net proceeds from issue of equity instruments 16 10,965 2,916
Payment of lease liabilities  (76) -
Net cash flow from financing activities  10,889 2,916
    
Net change in cash and cash equivalents  1,688 (971)
    
Cash and cash equivalents at beginning of year 15 3,645 4,616
Cash and cash equivalents at end of year 15 5,333 3,645

Consolidated Statement of Changes in Equity
For the Year Ended 31 March 2020

   
 
 
Share capital
 
 
Share
premium
 
Reverse
acquisition
reserve
 
Capital
redemption
reserve
 
 
Retained
earnings
Share-
based
payment
reserve
 
 
 
Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000
Sosandar Plc
Balance at 1 April 2018
 107 27,796 (19,596) 4,648 (8,055) 32 4,932
Loss for the year  - - - - (3,546) - (3,546)
Share-based payments 18 - - - - - 76 76
Lapsed options  - - - - 1 (1) -
Issue of share capital 16 9 2,991 - - - - 3,000
Costs on issue of share capital 16 - (84) - - - - (84)
Balance at 31 March 2019  116 30,703 (19,596) 4,648 (11,600) 107 4,378
Loss for the year  - - - - (7,814) - (7,814)
Shares-based payments 17 - - - - - 375 375
Issue of share capital 16 76 11,924 - - - - 12,000
Costs on issue of share capital 16 - (1,035) - - - - (1,035)
Balance at 31 March 2020  192 41,592 (19,596) 4,648 (19,414) 482 7,904

 

 

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses.

Share based payments reserve relate to the charge for share-based payments in accordance with International Financial Reporting Standard 2.

Retained earnings represent the cumulative loss of the Group attributable to equity shareholders.

Reverse acquisition reserve relates to the effect on equity of the reverse acquisition of Thread 35 Limited.

Capital redemption reserve represents the aggregate nominal value of all the deferred shares repurchased and cancelled by the Company. The reserve is non-distributable.

Company Statement of Financial Position As at 31 March 2020

  As at 31
March
2020
As at 31
March
2019
 Notes £’000 £’000
Assets   
Non-current assets 
Investments 12 6,282 6,282
Loans to subsidiaries 13 16,950 7,094
Total non-current assets 23,232 13,376
    
Current assets   
Trade and other receivables 14 132 8
Cash and cash equivalents 15 4,819 3,134
Total current assets 4,951 3,142
Total assets 28,183 16,518
    
Equity and liabilities    
Equity    
Share capital 16 192 116
Share premium 16 41,592 30,703
Other reserves 16 & 17 482 107
Capital reserves  4,648 4,648
Retained earnings – prior years 18 (19,091) (19,206)
Retained earnings – current year 18 95 115
Total equity  27,918 16,483
    
Current liabilities   
Trade and other payables 19 265 35
Total current liabilities 265 35
Total liabilities 265 35
Total equity and liabilities  28,183 16,518

Company Statement of Cash Flows For the Year Ended 31 March 2020

  Year ended
31 March
2020
Year ended
31 March
2019
 Notes £’000 £’000
Cash flows from operating activities  
Profit for the year 95  114
Impairment of investments and loans to subsidiaries 12 - -
Interest charged on intercompany loan 13 (652) (293)
Share-based payments 17 375 76
Working capital adjustments:    
   Change in trade and other receivables 14 (124) 146
   Change in trade and other payables 19 230 (222)
Net cash flow from operating activities (76) (179)
    
Cash flow from investing activities    
Loans to subsidiary undertakings  (9,204) (3,966)
Net proceeds for sale of subsidiaries  - 51
Net cash flow from investing activities  (9,204) (3,915)
   
Cash flow from financing activities    
Net proceeds from issue of equity instruments 16 10,965 2,916
Net cash flow from financing activities  10,965 2,916
    
Net change in cash and cash equivalents  1,685 (1,178)
Cash and cash equivalents at beginning of year 15 3,134 4,312
Cash and cash equivalents at end of year 15 4,819 3,134

Company Statement of Changes in Equity For the Year Ended 31 March 2020

   
 
Share
capital
 
 
Share
premium
Share-
based
payment
reserve
 
Capital
redemption
reserve
 
 
Retained
earnings
 
 
Total
equity
 Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 April 2018  107 27,796 32 4,648 (19,206) 13,377
Profit for the year  - - - - 114 114
Issue of share capital 16 9 2,991 - - - 3,000
Costs on issue of share capital 16 - (84) - - - (84)
Shares based payments 17 - - 76 - - 76
Lapsed options  - - (1) - 1 -
Balance at 31 March 2019  116 30,703 107 4,648 (19,091) 16,483
Profit for the year  - - - - 95 95
Issue of share capital 16 76 11,924 - - - 12,000
Costs on issue of share capital 16 - (1,035) - - - (1,035)
Shares based payments 17 - - 375 - - 375
Balance at 31 March 2020  192 41,592 482 4,648 (18,996) 27,918

 

Share capital is the amount subscribed for shares at nominal value.

               

Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses.

 

Share-based payments reserve relate to the charge for share-based payments in accordance with International Financial Reporting Standard 2.

 

Retained earnings represent the cumulative loss of the Company attributable to the equity shareholders.

 

Capital redemption reserve represents the aggregate nominal value of all the deferred shares repurchased and cancelled by the Company. The reserve is non-distributable.

Notes

Notes to the Financial Statements are available in the printable PDF version

Page last updated: 18 August 2020

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