Sosandar FY revenues grow, expects 'marginal loss'

Sosandar said revenues were up 9% at £46.3m and highlighted that gross margins had improved from 56.1% to 57.6%, reflecting a planned reduction in certain price promotional activity ahead of a selective store rollout in the UK.

The AIM-listed group stated that as a result of a "substantial positive swing" in pre-tax profits, from a £1.3m loss in H1 to an expected profit of £1.1m in H2, its full-year performance was seen "broadly in line with market expectations", with a marginal loss of £200,000 expected to be reported for the year overall.

Post-year-end, Sosandar highlighted that April trading had been "strong", with continued improvement in profitability driven in particular by gross margin.

Sosandar also pointed out that "substantial progress" had been made towards opening its first stores, with several shops identified in "top tier locations" at various stages of progression, including some now reaching the latter stages.

"Our primary focus is to ensure that Sosandar stores are situated in the right position in affluent, thriving locations where Sosandar customers over-index. The exact timing of first openings will, accordingly, be determined by our disciplined approach to ensuring 'right price, right location' and that all other aspects are in place to deliver a fantastic in-store customer experience," said Sosandar.

As of 1125 BST, Sosandar shares had sunk 9.09% to 12.50p.

Reporting by Iain Gilbert at Sharecast.com