Press Release 14 July 2026
Strong growth in revenue and margins driving improved profitability
Sosandar plc (AIM: SOS), the women’s fashion brand, creating quality, trend-led products for women of all ages, is pleased to announce its results for the year ended 31 March 2026 (‘FY26’ or ‘the Period’).
Ali Hall and Julie Lavington, Co-CEOs commented: “We set out at the start of the year to demonstrate that we could return to strong revenue growth while maintaining margins and improving profitability, and we have delivered on all three. This strong performance is testament to the strategic decisions we have made over the past two years, asking customers to return to full-price shopping and becoming a multi-channel retailer. Our distinctive Sosandar aesthetic — sexy and chic, flattering and wearable — continues to deliver for our customers. This year we have seen strong sales in all categories, in particular trousers, jackets, jeans and tops reflecting increased customer demand for separates. Q1 FY27 has started well, with continued growth across our own channels, supported by a strong performance with our third-party partners. The momentum we have taken into the new financial year is pleasing, and we remain on track to deliver full year market expectations. With a scalable operating model, a loyal customer base, and clear operating leverage as we grow, we have never been more confident in the long-term opportunity for Sosandar.”
Ali Hall and Julie Lavington, Co-CEOs commented:
“We set out at the start of the year to demonstrate that we could return to strong revenue growth while maintaining margins and improving profitability, and we have delivered on all three. This strong performance is testament to the strategic decisions we have made over the past two years, asking customers to return to full-price shopping and becoming a multi-channel retailer.
Our distinctive Sosandar aesthetic — sexy and chic, flattering and wearable — continues to deliver for our customers. This year we have seen strong sales in all categories, in particular trousers, jackets, jeans and tops reflecting increased customer demand for separates.
Q1 FY27 has started well, with continued growth across our own channels, supported by a strong performance with our third-party partners. The momentum we have taken into the new financial year is pleasing, and we remain on track to deliver full year market expectations.
With a scalable operating model, a loyal customer base, and clear operating leverage as we grow, we have never been more confident in the long-term opportunity for Sosandar.”
Adjusted profit before tax excludes the effect of year specific transactions that are either one-off in nature and/or unreflective of the underlying trading performance of the Company, which includes impairment of non-financial assets in FY26 and warehouse transition costs in FY25.
The Company is hosting a webinar for retail investors at 9.00am today. If you would like to attend, please register via engageinvestor.news/SOS_FY26.
Sosandar is a women’s fashion brand in the UK targeting style conscious women who have graduated from lower quality, price-led alternatives. The Company offers this underserved audience fashion-forward, affordable, quality clothing to make them feel sexy, feminine, and chic. The business sells predominantly own-label exclusive product designed and tested in-house.
Sosandar’s product range is diverse, providing its customers with an array of choice for all occasions across all women’s fashion categories. The company sells through Sosandar.com and its own stores, and has a number of high value brand partnerships including with NEXT, M&S and John Lewis.
Sosandar’s success has been built on an exceptional product range, seamless customer experience and impactful, lifestyle marketing, all of which is underpinned by combining innovation with data analysis. Our growth strategy is focused on continuing to grow brand awareness and expand our addressable market and routes to market, reaching customers wherever they wish to shop. This is achieved both through direct to consumer channels and through chosen third-party partners.
Sosandar was founded in 2016 and listed on AIM in 2017. More information is available at www.sosandar-ir.com
I’m delighted to report on a year of strong progress for Sosandar, which marks a further step forward in the delivery of our strategy and is testament to the strength of the foundations we have built. Having deliberately reset the business three years ago — prioritising margin quality, profitability and cash generation over short‑term volume — FY26 demonstrates that this disciplined approach is now delivering profitable growth alongside increased financial resilience.
During the year, the Group delivered total revenue of £42.3 million, an increase of 14% year‑on‑year, while maintaining a clear focus on margin enhancement and profitability. Gross margin increased to 64.0%, reflecting continued improvement in intake margins and a sustained move away from discount‑led trading. We delivered adjusted profit before tax of £0.4 million, in line with market expectations and a further improvement on the prior year.
Our own website, which remains central to the Sosandar brand, continued to perform strongly, with revenue growth of 24% year‑on‑year. This performance was driven by increased traffic, improved conversion and higher order volumes from both new and returning customers, highlighting the ongoing appeal of our product proposition and the effectiveness of our marketing strategy. Demand remained strong across all categories, demonstrating our ability to translate trends into a distinctive Sosandar aesthetic that resonates with customers.
Sosandar is now firmly established as a multi‑channel retailer, with products sold through our own website, through highly reputable third-party partners and our store estate. Trading through partners such as NEXT remained robust, with Sosandar continuing to perform as one of the top‑selling brands across these platforms, providing valuable reach and complementary exposure alongside our direct‑to‑consumer channel. Our stores are now all in their second year of trading, with performance strengthening across the portfolio.
The year also highlighted the benefits of our diversified channel mix. Following the cyber incident at M&S, trading through this partner was temporarily disrupted, however the strength of our own‑site performance and other third-party partners ensured the business remained resilient throughout this period. Activity has since normalised and stock intake has returned to pre-incident levels.
Sosandar ended the year with net cash of £8.4 million, even after returning £1.8 million to shareholders through share buybacks. The Board remains committed to disciplined capital allocation. The decision to undertake buybacks reflects our confidence in the long‑term prospects of the business and the strength of the balance sheet.
At the heart of Sosandar’s success is our product: high‑quality, versatile, head‑to‑toe outfitting at a compelling mid‑market price point. This is delivered by a talented and dedicated team across the business, whose commitment and creativity continue to underpin our progress. I would like to thank all our colleagues for their contribution over the year.
The Board remains confident in Sosandar’s strategy and long‑term opportunity. The delivery achieved in FY26, combining revenue growth, sustained margins and a robust cash position, supports our belief that the foundations are firmly in place to deliver sustainable, profitable and cash‑generative growth over the medium to long term. Our priorities remain clear: to deliver profitable growth through the performance of our own site, supplemented by other channels that drive more customers to the Sosandar brand.
On behalf of the Board, I would like to thank our shareholders for their continued support.
Nicholas MustoeChairman9 July 2026
FY26 has been an important year for Sosandar. It is the year in which we have clearly and consistently demonstrated that the strategic decisions we made to prioritise margin quality, profitability and cash generation while repositioning the brand as a full‑price, multi‑channel retailer were the right ones.
Over the last 18–24 months, we asked customers to change their shopping behaviour: to stop waiting for the next promotion and to return to a more “normalised” way of shopping with us. That was a deliberate choice, and it required patience and discipline. The result is that FY26 delivered what we expected: a return to strong revenue growth, achieved alongside sustained margins and improving profitability — proving we can do all three at the same time.
The Group delivered revenue of £42.3m, up 14% year‑on‑year, driven by a particularly strong performance on our own website, where revenue increased 24% year‑on‑year. This was supported by higher traffic, improved conversion and increased order volumes from both new and existing customers. Our focus on margin also delivered, with gross margin further increasing to 64.0% (FY25: 62.1%).
This stronger mix of growth and margin delivered a meaningful step forward in underlying profitability, with adjusted profit before tax of £0.4m (2025: £0.2m), in line with market expectations. Adjusted profit before tax includes the impact of the store estate (store estate loss of £0.9m) which, as expected, continues to weigh on profitability until they mature.
Importantly, the business remained cash generative and ended the year with net cash of £8.4m, even after returning £1.8m to shareholders through share buybacks.
Sosandar has always been a ‘brand’ first. Our customers come to us because they recognise our distinctive Sosandar aesthetic — sexy and chic, flattering and wearable — and because our products consistently deliver quality at a mid‑market price point.
We also believe our brand stands out in the sector because of how we interact with our customers: we present fashion through an upbeat, real‑life lens — imagery that reflects confidence. This tone is not superficial; it contributes to loyalty and engagement over time, helping customers feel connected to the brand as well as the product.
Sosandar continues to perform strongly across all categories, from occasion wear to casualwear, reflecting our ability to translate trends into our signature aesthetic and meet customers’ needs across multiple moments and occasions.
A key driver of our return to growth, alongside the strength of the product offering, has been the success of Sosandar’s marketing activity.
Our marketing strategy is differentiated by its tight alignment to product, brand and customer insight, rather than volume‑led customer acquisition. We focus on reaching a clearly defined audience, style‑conscious women looking for quality, wearable fashion through distinctive, lifestyle‑led content. This approach, combined with disciplined, data‑driven targeting, enables us to attract higher‑quality customers with stronger lifetime value rather than purely driving traffic. A key differentiator is our continued use of curated print brochures, which have proven highly effective in both engaging existing customers and attracting new ones, reinforcing brand identity.
Importantly, our physical stores and curated third‑party partnerships also act as powerful brand‑building and discovery channels, introducing Sosandar to new customers in a considered way that reinforces brand credibility. This integrated model, which spans digital, print, stores and partners, creates a more premium and consistent customer journey, supporting new customer acquisition and long‑term engagement without reliance on heavy promotional activity.
We have seen new and existing customers shop more frequently now that they are accustomed to paying full price. As customers adjusted to fewer discounts, we worked to re‑ignite lapsed shoppers and increase the frequency and breadth of purchase among returning customers, as well as increasing marketing spend in a measured way to attract new customers to the brand.
Sosandar’s own website remains the cornerstone of the brand and our flagship destination, where customers can engage with the full Sosandar lifestyle and product range. FY26’s performance demonstrates the strength of this channel, with own‑site revenue up 24% year‑on‑year.
Alongside our own site, our third‑party partner model continues to deliver reach, credibility and incremental demand, with Sosandar remaining one of the top‑selling brands across key partners including NEXT. As expected, trading with M&S has gradually resumed following their cyber incident, with stock intake now back to pre-incident levels.
This combination of strong direct-to-consumer performance at attractive margins, supported by high‑quality partner distribution, is the heart of our growth strategy. As we have said consistently, we are building a brand with multiple routes to market, anchored in product relevance and customer loyalty.
Our store estate continued to mature during FY26, with a positive uplift in performance as locations moved into their second year of trading. We have also reinforced an important learning: market town locations are performing most strongly, while shopping centre locations take longer to mature.
We view stores as an important part of our multi‑channel model, both as a brand showcase and as a way to introduce Sosandar to new customers. However, we remain clear on the economics. As expected, stores continue to weigh on profitability until they mature. Our priority is therefore to drive profitability in every location before considering further openings. In line with this approach, we do not currently anticipate any further new store openings in the FY27 financial year.
Our licensing agreement with NEXT is still in a nascent stage, however we have seen strong sales in categories such as home fragrance and rugs, which are more conducive to impulse purchases rather than big ticket items such as sofas and furniture. Our partners are still learning what types of products resonate with customers and it is important to note that there is no capital expenditure required from Sosandar in producing the products, so there is little risk to the venture.
As Sosandar scales, the economics of the model become increasingly attractive. Over recent years we have built a capable team and the core operating infrastructure needed to support our business. With revenue growing, we believe there is meaningful opportunity for profit to grow faster than revenue over time, because much of the cost base required to operate the business is already in place and does not need to rise in line with sales.
In practice, this means we can grow by doing more of what we already do well: designing great product, marketing it intelligently, and selling it across our channels without needing proportionate increases in headcount, content creation or fixed infrastructure.
Looking ahead, we have entered FY27 with positive momentum and trading since the year end has been in line with expectations. In the first quarter, net revenue increased by 22% to £11.6m, reflecting continued strong performance across the business. We have continued to make progress on margin, with gross margin increasing further to 65.2%, underlining the strength of our product proposition and the benefits of the disciplined approach we have taken over the last two years.
Own-site revenue grew by 7%, with continued progress across our key customer and trading metrics. While this represents a moderation against the exceptional growth delivered in FY26, this was anticipated given the prior year comparator marked the first period of renewed growth following the strategic decision around pricing, promotions and marketing investment. Trading across our third-party partners remains strong, with all major partners performing ahead of the prior year, including M&S following the return to normal trading conditions.
We continue to prove out the thesis that we expected when we started the journey of improving margin and profitability, we have never been more confident in the long‑term opportunity for Sosandar. Our priorities remain focused on growing the core online and partner business at attractive margins; continuing to deliver product that resonates with our broad customer demographic; and maintaining disciplined capital allocation while retaining flexibility to invest behind the brand.
1 Adjusted figures exclude the effect of year specific transactions that are either one-off in nature and/or unreflective of the underlying trading performance of the Group, which includes impairment of non-financial assets in FY26 and warehouse transition costs in FY25. More details are provided in note 3.2 Statutory profit before tax for the year ended 31 March 2026 was £31k.3 EBITDA is calculated as profit/(loss) before tax, adjusted for finance income/costs, depreciation, amortisation, share based payments and impairment.
1 Average Order Value is calculated on own site sales only, inclusive of shipping charges and VAT2 Active customers is the number of individual customers who purchased from Sosandar.com in the last 12 months3 Average Order Frequency is the total number of orders in the last 12 months divided by the number of active customers
Our focus for FY26 was to deliver a year of growth in revenue, particularly on our own website, further increase gross margin and improve our profitability. We have delivered against these objectives, in spite of the significant impact of losing revenue through M&S following their cyber incident in April 2025, at the beginning of our financial year. Our performance is therefore extra pleasing, and gives us confidence that FY27 will be similarly strong with a full and normalised year through M&S. Profit has been impacted by physical stores, which are currently weighing on PBT, although revenue is lifting as each location moves into the second year of trading.
We have also been cash generative in the year and have purchased £1.8m of shares at an average price of 7.17p, equating to 10% of the total issued share capital. 24.8m shares are held in treasury at 31 March 2026 and further approval was granted on 1 April 2026 to make further purchases up to a maximum of 22.4m shares.
We are in a strong financial position to deliver sustained growth in revenue and profit, following the strengthening of our foundations over the previous couple of years.
The Group recognised revenue for the year of £42.3m, representing an increase of 14% compared with the previous financial year (£37.1m). Revenue through our own channels (own website and stores) was £21.5m, which is 31% up year on year. Third-party revenue was flat in the year, although this is materially affected by the cyber incident at M&S.
Returning to growth on our own website was the number one objective following the strategic decision to reduce the level of promotional activity which commenced two years ago. As our customers have become used to the new norm, we have seen growth in orders from both new and repeat customers, with KPIs showing growth. Importantly, the growth in revenue has been delivered with substantially higher gross margin, which has resulted in the gross margin for the Group improving by over 600bps in just two years (FY24: 57.6%). Active customers increased by 15% and the Average Order Frequency increased by 7%, which also reflects the increased investment in marketing, which is paying back on first order as a result of the gross margin being so much higher than in the past.
As we end the financial year, all of our retail stores have now been open and trading for more than one year. It is really pleasing that we are seeing an uplift in revenue year on year as each store matures and more new customers are being introduced to the Sosandar brand as a result of the stores existing. However, the store estate is weighing on profitability, impacting PBT by £0.9m in the financial year. Stores in market town locations are performing most strongly, with shopping centre locations taking longer to mature. It is these shopping centre locations that are having the largest impact on profitability and is why we do not anticipate further openings in the near term, until we see locations move to break even and into profitability.
Revenue through our third-party channels was maintained at £20.8m (FY25: £20.7m), being heavily impacted by the cyber incident at M&S. We had zero revenue for a period of 11 weeks from late April to early July. Following the M&S website becoming active again, trading was at a reduced level due to the restrictions on how much stock could be ingested into their warehouse. As a result, the impact of reduced revenue was experienced for the entirety of the Autumn/Winter season, with stock levels only returning to normalised levels in February 2026 in the lead up to the Spring/Summer season 2026.
Trading through our other third-party partners has been strong in FY26, as we continue to be one of the top selling brands in each of them, including NEXT who continue to be our largest partner.
The strategic focus on improving gross margin has resulted in a further step up in the year, increasing to 64.0% (FY25: 62.1%). Following the reduction in price promotional activity on our own website, the gross margin has now increased in two years by over 600 bps (FY24: 57.6%).
The primary reason for the increase in gross margin is the trading strategy on our own website. Additionally, intake margins have improved, in part reflecting the strengthening of Sterling against the US Dollar, leading to lower landed costs for stock. We have also reduced slightly the number of stock suppliers that we work with, leading to larger volumes being concentrated with each supplier resulting in improved prices being agreed.
Adjusted administrative expenses (excluding the effect of year specific items) increased by 16% to £26.6m (FY25: £22.9m) compared to a 14% increase in revenue.
Administrative expenses as a percentage of revenue increased marginally to 63% (FY25: 62%), which reflects spend increasing in order to drive growth in revenue coupled with a full year of costs for all 6 retail stores.
Following a year of low spend in FY25 (£1.1m), we have increased the investment in marketing which has delivered an excellent result with own website revenue growing by 24%. Marketing spend in FY26 was £2.4m which is mostly allocated to social channels, notably Meta and Google, coupled with the reintroduction of consumer brochures. In the year, three brochures were sent, one in Spring and two in Autumn. The objective of our marketing activity is to recruit new customers to Sosandar, and to engage with existing customers, encouraging them to purchase more frequently throughout the year.
Increasing the spend is anticipated in FY27 and beyond, with the quantum being the result of continued discipline, ensuring that the Cost Per Acquisition and Cost Per Order are maintained at a level which results in the payback that we expect.
The cost of physical retail stores including fit out depreciation was £2.4m in FY26 (FY25: £1.2m), which reflects the first full year of trading for all six stores.
The cost of fulfilment, which includes warehousing and customer order delivery costs, increased by 10% to £4.1m (FY25: £3.8m). This increase reflects the increase in throughput as the revenue was higher. Importantly, this cost as a percentage of revenue reduced from 10.2% to 9.8%, reflecting economies of scale and efficiency benefits being delivered by our new warehouse provider, Torque Logistics. We moved to Torque in February 2025, so FY26 is the first full year where they have supported us. They have performed well, meeting all agreed KPIs, ensuring our customers receive their orders quickly and processing stock receipts in a timely manner. Cost benefit has been realised following the warehouse move, with improved KPIs and lower delivery costs.
Other administrative costs increased by 5% to £17.6m (FY25: £16.9m). Overall, costs have been well controlled with focus being to spend in areas that will drive growth in revenue, specifically marketing. The increase in other administrative costs is predominantly due to two factors: foreign exchange losses and share based payments. A loss on foreign exchange is due to rates on forward contracts between GBP and USD being below the rate on the date USD stock invoices are paid. The total loss in the year was £0.3m (FY25: Nil). Additionally, the surrender and issuing of new share options resulted in an incremental cost to FY26 amounting to £0.2m more than in FY25.
During the year, a non-cash impairment charge of £0.3m has been recognised relating to tangible fixed assets and the notional right of use assets created as a result of the application of the IFRS 16 accounting standard. The impairment is excluded from the Adjusted PBT as it is not reflective of the underlying trading performance of the Group. More details are provided in note 11.
The statement of financial position has been strengthened in the year and remains robust. As at 31 March 2026, the Group had net assets of £16.9m (FY25: £17.9m) and a net current asset position of £13.9m (FY25: £14.5m).
In September, approval was granted at a General Meeting allowing for the cancellation of the Company’s share premium account in order to create distributable reserves. This was a preliminary step in order to provide the distributable reserves required to have the ability and flexibility to return value to Shareholders. Additionally, further approval was granted allowing the Company to make purchases of ordinary shares in the capital of the Company up to a maximum of 10% of the Company’s issued share capital. Subsequently, the full 10% authority has been utilised, with 24,822,651 shares being held in treasury at 31 March 2026, costing a total of £1.8m. Post the end of the financial year, a further approval was granted to allow for another 10% to be purchased.
After spending £1.8m on the share buyback, the cash balance at 31 March 2026 was £8.4m (FY25: £7.3m). There remains no bank indebtedness. Strong trading coupled with reducing inventory during the year are the primary reasons for the strengthened cash balance. Additionally, there was substantially lower CAPEX outlay in FY26, following the opening of the retail store estate in FY25 (£1.7m).
Inventory, net of provisions, reduced in the year, from £11.1m in FY25 to £10.0m in FY26. The reported inventory balance includes stock on hand at the main warehouse, at our stores and at third-party concession partners, stock in transit and the right to return asset which covers post year end returns. Following the strategic change of reducing price promotional activity on our own website and the subsequent reduction in revenue in FY25, carry over stock was higher entering into FY26. Strong sell through in FY26 was achieved from carry over and newly purchased stock, resulting in closing inventory being lower year on year. Whilst the lower level of inventory did not have a material effect on revenue, we do expect inventory levels to rise by a greater percentage than revenue in FY27 in order to rebuild the level of carry over stock.
Within inventory, the right to return stock, covering the post year end returns, was maintained at £0.6m (FY25: £0.6m).
Trade and other payables increased marginally to £7.2m (FY25: £7.1m). Whilst there is nothing of note to report, it is worth highlighting that payments continue to be made in full and on time and there has been no change in the average payment terms for stock in the year.
Trade and other receivables decreased to £3.5m (FY25: £3.8m), which includes amounts owing from concession and wholesale customers. The reduction reflects the timing of payments from concession partners which were just after year end last year, whereas this year they are before. No change to payment terms were made during the year and the vast majority of payments continue to be received on time and in full.
Non-current assets decreased to £5.7m (FY25: £6.8m), which includes the right of use asset (FY26: £3.1m vs FY25: £4.1m) which largely relates to the six retail stores opened in FY25.
Investment in fixed assets and intangibles has been much lower in FY26 following the CAPEX outlay in FY25 relating to the stores being opened. Additionally, investment in the Enterprise Resource Planning (ERP) project is ongoing. Stage 1 went live in March 2025 and stage 2 will go live in FY27. Stage 1 covers all stock flows and integrations between our various systems. Stage 2 covers all finance elements with the cost incurred in FY26 being £0.1m.
The Group had a net cash position as at 31 March 2026 of £8.4m (FY25: £7.3m). As highlighted already, the Group’s cash position improved during the year, even after the £1.8m incurred buying back shares.
The cash balance is healthy, with the forecast for FY27 to be cash generative, reflecting continued growth in revenue and EBITDA.
For the year ended 31 March 2026
The prior year loss per share (pence) has been restated from (0.22) to (0.21). Refer to note 9 for further details.
The Directors assess the underlying performance of the Group based on Adjusted Profit Before Tax, which is £0.4m (FY25: £0.2m). This measure reflects the underlying trading performance of the Group and excludes the effect of transactions that are year specific, including impairment of right of use and tangible assets relating to retail stores. Please see note 3 for detailed reconciliations of the alternative performance measures.
As at 31 March 2026
The financial statements were approved and authorised for issue by the Board of Directors on 9 July 2026 and were signed on its behalf by:
Stephen DilksDirectorCompany Number: 05379931
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. 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; this reserve is non-distributable. Retained earnings represent the cumulative loss of the Group attributable to equity shareholders. Other reserve relates to the charge for share-based payments in accordance with International Financial Reporting Standard 2.
A capital reduction was completed during the financial year following the Court approval on 14 October 2025. The Company started a share buy-back programme during the year — refer to note 17 for further information.
In accordance with the provisions of the Companies Act 2006, the Company has not presented a statement of profit or loss and other comprehensive income. The Company’s loss for the year was £534k (2025: £7,545k profit).
Sosandar Plc (the ‘Company’) is a public company limited by shares incorporated in England and Wales. The Company is listed on the AIM market of the London Stock Exchange (ticker: SOS).
The principal activity of the Group in the year under review was that of a clothing manufacturer and distributor via internet and mail order as well as retail stores. The principal activity of the Company is that of a holding company.
The consolidated financial statements consolidate those of the Company and its subsidiaries (together the ‘Group’ or ‘Sosandar’). The consolidated financial statements of the Group and the individual financial statements of the Company are prepared in accordance with applicable UK law and UK adopted international accounting standards (IFRSs) and as applied in accordance with the provisions of the Companies Act 2006.
In order to assess the going concern of the Group, the directors have reviewed the Group’s bank balances, cash flows, the annual budgets and forecasts, including assumptions concerning revenue growth, marketing spend, expenditure commitments and capital requirements with regards to their impact on cash flow. At 31 March 2026, the Group had a cash balance of £8.4m and is therefore in a strong position, with sufficient working capital to take advantage of opportunities in FY27 and beyond. This substantiates the view that the Group is a going concern.
The directors continue to monitor the Group’s going concern basis against the backdrop of both internal and external events, including relatively high inflation and pressure on household budgets. Whilst at a macro level, this has impacted consumer spending, the Group has not experienced a material downturn in activity. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis in preparing the financial statements.
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings; all subsidiaries have a reporting date of 31 March. In November 2017, Sosandar Plc acquired the entire issued share capital of Thread 35 Ltd for a consideration of £6,281,618, satisfied by the issue of shares of £1,603,422 and cash of £4,678,196. As the legal subsidiary is reversed into the Company (the legal parent), the transaction is accounted for under IFRS 2 ‘Share-based payment’ rather than as a business combination under IFRS 3. Although the consolidated financial information is issued in the name of Sosandar Plc, it represents in substance a continuation of the financial information of Thread 35 Ltd.
The financial statements are presented in pounds sterling (£), which is the Group’s presentation currency and the Company’s functional currency. Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions, with gains and losses recognised in the income statement.
During the financial year, the Group adopted amendments relating to Lack of Exchangeability (Amendments to IAS 21), effective 1 January 2025, with no material impact. Standards issued but not yet effective and relevant to the Group include Amendments to the Classification and Measurement of Financial Instruments and Annual Improvements to IFRS Accounting Standards – Volume 11 (both effective 1 January 2026), and IFRS 18 Presentation and Disclosure in Financial Statements (effective 1 January 2027). The Directors are evaluating the impact of these standards.
Further policies cover: share-based payment charges (measured at fair value at grant date using appropriate valuation models); depreciation and amortisation of property, plant, equipment and intangible assets; revenue recognition (recognised when legal title passes to the customer, net of expected returns, vouchers and sales taxes); alternative performance measures (adjusted profit before tax as an APM excluding year-specific items); intangible assets (website 20%, trademark 20%, software 33%, straight line); property, plant and equipment (plant and machinery 15%, computer equipment 33.33%, fixtures and fittings 20%, office equipment 20%, leasehold improvements 20%, right of use asset 20%, all straight line); equity, inventories (lower of cost and net realisable value, weighted average cost basis); taxation; pension costs (defined contribution scheme); investments in subsidiaries (at cost less impairment); impairment of non-financial assets (with each individual retail store treated as a cash-generating unit); provisions; financial instruments; leases (right of use assets and lease liabilities measured on a present value basis); and further detail on critical accounting judgements.
Key areas identified by the Group include:
1 The impairment charge in the current year relates to the impairment of the Group’s right of use assets and fixed assets relating to the stores following an impairment review at the year end.2 The warehouse costs in the prior year related to the warehouse move from GXO to Torque Logistics in February 2025, including labour, transport and redundancy costs.
The Group only has one operating segment, which is retail sales. The major geographical market of the Group is the UK.
Disaggregation of revenue based on distribution channels:
1 Own Channels includes Sosandar.com and own stores2 Third-Party Channels includes concession and wholesale
Average headcount:
1 Employees categorised as Senior Management changed in the year — in FY25 this also included retail store managers given it was the first full year of trading for each store.
1 Stepped down from the Board 28 January 2026. The share-based payment charge related to directors was £400k (2025: £239k).
Key management personnel excluding directors received emoluments for the year of £882k (2025: £1,092k), including payments in lieu of notice of £nil (2025: £67k).
The deferred tax asset recognised has been calculated using the current year tax rate of 25% (2025: 25%). The unrecognised deferred tax asset amounts to £4,151k (2025: £4,611k), calculated at the tax rate of 25%.
Where a loss is incurred, the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. The weighted average number of ordinary shares used in the basic calculation includes a weighted average of 11,693,055 (2025: 11,789,130) vested options with an exercise price of par and a weighted average number of treasury shares of (6,055,969) (2025: nil). In line with IAS 33, the prior year weighted average and fully diluted average number of shares was restated to reflect the weighted average number of nil exercise price vested share options during FY25 (11,789,130), which resulted in basic and diluted loss per share being restated from (0.22) to (0.21).
Assets under construction are costs relating to the ERP implementation project. The £6k transfer is a transfer from tangible assets (see note 11).
1 The right of use asset and fixtures and fittings relating to two stores were impaired by £346k following an impairment review at the balance sheet date (£237k against right of use assets, £109k against fixtures and fittings).
The Group considers each individual store to be a CGU for impairment testing purposes. The recoverable amount of each store is determined based on their value in use (VIU), except for one store which is based on fair value less cost of disposal. The VIU is based on the Group’s latest budget and forecast cashflows covering a 3-year period, extrapolated beyond that using a medium-term growth rate. Cashflows for each CGU include Click & Collect sales, a central costs allocation, a marketing recharge, and ongoing capital expenditure.
Key assumptions: revenue growth rate of 5% year on year beyond the 3-year budget period; pre-tax discount rate of 11%; cashflow length aligned to lease term where terms are 10 years, or based on forecast profitability and likelihood of lease extension for shorter terms.
A 1% increase/decrease in the discount factor would result in an increase/(decrease) in the impairment charge of £24k/(£5k) respectively. A 1% decrease in the 5% medium term revenue growth rate would result in an increase in the impairment charge of £62k.
Subsidiaries of Sosandar Plc:
No impairment was identified for Thread 35 Ltd following the FY26 value in use assessment.
The cost of inventories charged in the year as an expense equated to £15,232k (2025: £14,067k).
At 31 March 2026, five customers owed in excess of 80% of the total trade debtor balance; these customers were operating within their credit terms. No expected credit losses have been recognised on trade receivables in either year.
A multilateral guarantee is given by Sosandar PLC and Thread 35 Ltd to HSBC UK Bank plc dated 18 April 2024.
The Company announced the commencement of a share buy-back programme of up to 24,822,651 ordinary shares during the year, approved at the Annual General Meeting on 18 September 2025. The total number of shares purchased and held in treasury at 31 March 2026 was 24,822,651, representing 10% of the Company’s ordinary shares, purchased at an average price of 7.2p per share (range: 5.7p to 8p per share). The total cost of £1,788k included £9k of transaction costs.
The Group has a share ownership compensation scheme for Directors and senior employees. Options over ordinary shares of 15.1p were issued on 2 November 2017, and over ordinary shares of 29.2p on 25 February 2019. On 21 June 2021, a new Long Term Incentive Plan was established, granting nil cost options over ordinary shares of 0.1p to Executive Directors and Senior Management.
On 17 December 2025, the Group awarded new share options totalling 18,171,258 ordinary shares with an exercise price of 7.25p to Executive Directors and Senior Management, with 13,291,258 existing options cancelled and treated as a modification under IFRS 2. The total incremental fair value of the new options is £524k, of which £146k related to vested options and was recognised immediately (included within the FY26 charge). The remaining £378k is to be recognised over the vesting period through to FY31.
Options outstanding at 31 March 2026 had a weighted average exercise price of £0.055 and a weighted average remaining contractual life of 6.08 years. Fair values for options granted prior to 2021 were calculated using the Black Scholes model; options granted in June 2021 and December 2025 used the Monte Carlo model.
The Group recognised a charge of £438k (2025: £268k) related to equity-settled share-based payment transactions, all within the subsidiary Thread 35 Ltd. The in-year charge includes the accelerated charge of £146k following the December 2025 modification.
In the previous financial year, the Group entered into six further property leases in England — two properties with terms of five years (break clause after three years) and four properties with terms of ten years (break clause after five years). The lease agreements are in the name of subsidiary company Thread 35 Ltd. The Company is a guarantor for two property leases, with an outstanding liability at 31 March 2026 of £1,238k.
There were no related party transactions in the current year.
The Group’s activities expose it to a range of financial risks: market risk (including foreign currency and interest rate risk), credit risk and liquidity risk. The Board has overall responsibility for risk management objectives and policies, delegating implementation to the Group’s finance function.
The Group faces low credit risk as own site customers pay for their orders in full on order of the goods. There are credit terms with third-party concession and wholesale customers, who have strong credit ratings and a robust payment history. The Group does not deem credit risk a material risk to the business.
The Group is exposed to cash flow interest rate risk from its deposits of cash and cash equivalents with banks, which are proactively managed. The Group is not exposed to cash flow interest rate risk on borrowings, as it has no debt.
Foreign exchange risk may arise because the Group purchases stock in currencies other than the functional currency. The Group monitors the requirement for foreign currency on a monthly basis.
Liquidity risk arises from the Group’s management of working capital. The Group’s policy is to maintain readily available cash balances (or agreed facilities) to meet expected requirements.
1 Excluding VAT
The Group’s objectives when managing capital are to safeguard the ability to continue as a going concern in order to provide returns for shareholders and benefits to other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
On 29 June 2026, the lease relating to the Bath store was assigned to another retailer and the store was closed. As the assignment was completed after the balance sheet date, it has been treated as a non-adjusting event. At the date of the assignment, the assets and liabilities associated with the lease were the right of use asset and fixtures and fittings with a combined book value of £1.1m, a lease liability of £1.0m and a dilapidations provision of £0.1m. The associated assets and liabilities relating to the lease will be disposed of/released in FY27.
The Company and Group has no contingent liabilities.
There is no ultimate controlling party of the Group.
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