Sosandar confident for full year, despite first-half loss

The AIM-listed firm, which is expanding into bricks and mortar shops, reported revenues of £22.2m in the six months to 30 September, up 6% on the same period a year previously.

The pre-tax loss, however, was £1.3m, compared to a pre-tax profit of £0.1m in 2022.

Sosandar attributed the loss to a reduction in price promotional activity, which it trialled during the first half.

The move led to a "material improvement" in average order value and margin but lower site visits, orders and conversion, it noted.

Sosandar remained upbeat for the rest of the year, however, after seeing "record" trading in November.

Net revenue for October and November was £10.2m, a 16% jump year-on-year. Reduced price promotion also continued, which helped the gross margin strengthen to 58.1%.

In a statement, joint chief executives Ali Hall and Julie Lavington said: "Over the past six months we have made significant steps in our journey to become a multi-channel retailer while also expanding the reach of the Sosandar brand.

"Throughout the period we saw growth across all product ranges, with particular success in summer occasion wear and beach and swim ranges.

"Trading in the second half to date has been encouraging, in line with full-year market expectations.

"Looking ahead, we believe that the future is very bright as we take the Sosandar brand to more customers across the UK and worldwide and move further wards our strategic goal of delivering £100m+ in revenues."

Sosandar plans to open its first standalone stores in spring 2024.