Sosandar's revenue growth offset by rising admin costs

Online retailer Sosandar turned in a bigger than expected loss from the first half of its trading year as rising revenues were offset by increased operating and administrative expenses.

Pre-tax losses widened 81.8% to £2m in the six months ended 30 September despite a 350% increase in revenue to £1.8m.

Sosandar's gross margin improved by nine percentage points to 55%, but operational costs widened 327% to £834,000, while administrative expenses ballooned 131% to £2.98m.

Despite the deeper loss, Sosandar said it was encouraged by the significant strides it had made in terms of revenue growth, increased average order values and repeat orders.

Joint chief executives Ali Hall and Julie Lavington, said: "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.

"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."

As of 1120 GMT, Sosandar shares were 8.09% higher at 36.75p.