Sosandar revenue tops £46m but loss alert hits shares

Sosandar Co-CEOs Ali Hall and Julie Lavington

Shares of Wilmslow-based fashion firm Sosandar plc — run by former magazine publishers Ali Hall and Julie Lavington — fell more than 10% after it published a trading update for its financial year ended March 31, 2024.

Sosandar said its revenue rose 9% to £46.3 million but the firm added: “As a result of a substantial positive swing in PBT (profit before tax) from H1 (£1.3m loss) to an expected profit of £1.1m in H2, FY24 will be broadly in line with market expectations with a marginal loss of £0.2m expected to be reported for the year overall.”      

Sosandar said that post year-end: “April trading has been strong with continued improvement in profitability driven in particular by gross margin.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

Sosandar said it believes that market expectations for the year ended March 31, 2024, are currently for revenue of £46.8 million and profit before tax of £100,000.

Ali Hall and Julie Lavington, Co-CEOs, said: “We have delivered a robust financial performance for FY24, delivering a profitable second half, accelerating revenue growth whilst at the same time growing our margin and generating cash.

“This performance has been achieved against one of the most challenging backdrops our industry has experienced and is testament to how our customers feel about our on-trend, affordable, long lasting, lifestyle appropriate clothes.    

The strength of our brand and unique product range remain the key drivers of our success and keep our customers returning to us for their wardrobe needs.

“We are incredibly proud to see the success that our Sosandar clothes are having in the UK’s biggest retailers and through our first partnerships internationally.  

We enter the new financial year well placed, with a strong cash position in order to execute the next stage of our growth strategy.

“April trading has been strong with continued improvement in profitability driven in particular by gross margin.

“We fully expect that we will deliver more milestones in FY25 as we open our first physical retail stores and continue to take the Sosandar brand to more customers across the UK and worldwide.