TIDMSOS
RNS Number : 4119W
Sosandar PLC
12 December 2023
Date: 12 December 2023
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Half Year Results and Trading Update
Strong autumn trading, improved margins and tracking in line
with full year market expectations
Sosandar PLC (AIM: SOS), one of the fastest growing fashion
brands in the UK, creating quality, trend-led products for women of
all ages, is pleased to announce its financial results for the six
months ended 30 September 2023 and a post period trading update
covering October and November.
Post-period Trading Highlights (October and November)
Autumn trading has been strong, and the Company is trading in
line with full year market expectations. All channels have
performed well with strong revenue growth, increased gross margin,
positive pre-tax profit in both months and a record month of
trading in November, with similar momentum in December to date.
-- Revenue for October and November in excess of GBP10m, a
16% increase on the same period last year and a significant
improvement on the 6% growth achieved in H1 FY24
-- Gross margin up 430bps versus H1 FY23 from 55.4% to 59.8%,
reflecting the planned reduction in price promotional activity
-- Strong performance on own site and one of the top selling
brands across all third-party partners including Next and
M&S
-- Substantial progress towards opening our first own stores,
with locations identified ahead of planned launch early
in FY25
-- Sainsbury's brand-new fashion concept stores went live
in early October with a wide range of Sosandar product
selling well in all nine stores
-- Signed new agreements with two large prestigious international
third-party partners: The Iconic in Australia which has
recently launched and The Bay in Canada, which is expected
to launch during the latter part H2 FY24
-- Balance sheet remains robust with cash position increasing
to GBP7.3m at 30 November 2023
Half Year Financial Highlights
-- Net revenue growth of 6.0% to GBP22.2m (HY23: GBP21.0m)
-- Loss before tax of GBP1.3m (HY23: GBP0.1m profit)
-- Gross margin increased to 55.4% (H1 FY22: 54.4%)
-- Net cash of GBP7.0m as at 30 Sept 2023 (FY23: GBP10.6m)
Ahead of our considered move towards a multi-channel model
aiming to significantly increase our addressable market, in Q2 FY24
we trialled a reduction in price promotional activity across our
own site. The performance in the period reflects this trial which,
as expected, resulted in a material improvement in average order
value and margin with the anticipated reduction in site visits,
orders and conversion. The planned roll out of our store estate
over the medium term is specifically designed to deliver profitable
growth as a result of less discounting and accelerate delivery of
our medium-term target of GBP100m+ revenue and a 10% margin.
Operational and Strategic Highlights
-- Successful launch with Global-e, a world leading platform,
enabling the Company to transact and fulfil orders worldwide
to over 60 countries in a cost-effective manner. Sales
data is being used to inform future international opportunities
based on where the Sosandar brand is performing well
-- Product across all categories continued to resonate with
customers with particularly strong sales of summer occasion
wear and holiday clothing in H1 FY24, with partywear and
knitwear being standout categories in autumn to date
-- Trading with well-established third-party partners has
continued to be strong with the success of the Sosandar
product resulting in increased collaboration with our partners,
including new partnership with Freemans launched in September
-- The mobile app, which went live in July, has performed
very well, with c70,000 downloads to date and generating
already 10% of own site sales at higher conversion rates
than through mobile web browsing
Ali Hall and Julie Lavington, Co-CEOs commented:
"Over the past six months, we have made significant steps on our
journey to become a multi-channel retailer whilst also expanding
the reach of the Sosandar brand. We are delighted to have launched
new partnerships with Sainsbury's and Freemans, signed our first
agreements with two large prestigious international third-party
partners and announced that we intend to open our first own stores
in Spring 2024.
"Our product remains the key driver of our success and keeps our
customers returning to us for their wardrobe needs. Throughout the
period, we saw growth across all product ranges with particular
success in our summer occasion wear and beach and swim ranges over
the summer. In the lead up to Christmas we have seen extremely
strong sales across all categories with party wear, dresses,
tailoring, knitwear and smart trousers being standout items.
"Trading in the second half of the financial year to date has
been encouraging, in line with full year market expectations, with
November a record month of trading. This strong performance has
been delivered across all our channels.
"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 towards reaching our strategic goal of
delivering GBP100m+ revenues and a pre-tax profit margin of at
least 10% in the medium term."
* Sosandar believes that market expectations for the year ending
31 March 2024 are currently revenue of GBP 46.8 million and PBT of
GBP 0.1 million.
Presentations
Sosandar is hosting a webinar for analysts at 08:30 hrs GMT
today. If you would like to register, please contact
sosandar@almastrategic.com
The Company is also hosting a webinar for retail investors at
12:00 today. If you would like to attend, please register here:
https://bit.ly/SOS_H124_webinar
Enquiries
Sosandar plc www.sosandar.com
Julie Lavington / Ali Hall, Joint c/o Alma PR
CEOs
Steve Dilks, CFO
Singer Capital Markets
Peter Steel / Tom Salvesen / Alaina
Wong +44 (0) 20 7496 3000
Alma Strategic Communications +44 (0) 20 3405 0205
Sam Modlin / Rebecca Sanders-Hewett sosandar@almastrategic.com
/ Matthew Young
About Sosandar plc
Sosandar is one of the fastest growing women's fashion brands 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 has
a number of high value brand partnerships including with Next,
Marks & Spencer and J Sainsbury.
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
Co-CEOs' Statement
Total net revenue for the period increased 6% year-on-year to
GBP22.2 million. Trading with our now well-established third-party
partners, including Marks & Spencer and Next, has been
consistently strong throughout the period, with all product
categories performing well at full RRP.
The period under review saw us take important steps towards
becoming a true multi-channel retailer with the launch of a new
partnership with Freemans, working with Sainsbury's towards the
launch of their brand-new fashion concept stores which went live in
early October , signing our first agreements with two large
prestigious international third-party partners: The Iconic in
Australia and The Bay in Canada, and announcing that we intend to
open up our own stores from Spring 2024. Ahead of our considered
move towards a multi-channel model aiming to significantly increase
our addressable market, in Q2 FY24 we trialled a reduction in price
promotional activity across our own site. The performance in the
period reflects this trial which, as expected, resulted in a
material improvement in average order value and margin with the
anticipated reduction in site visits, orders and conversion. The
planned roll out of our store estate over the medium term is
specifically designed to deliver profitable growth as a result of
less discounting and accelerate delivery of our medium-term target
of GBP100m+ revenue and a 10% margin.
The movement back to a pre-tax loss in the period was driven by
the expected reduction in revenue following the Q2 trial alongside
higher overheads primarily related to staff as we invested to
ensure that we have the right team in place to deliver the next
stage of growth. We expect to remain profitable for the full year
and beyond.
Pleasingly, as had been expected, gross margin increased by
100bps year on year. This includes the effect of an increase in the
wholesale channel as a proportion of revenue. Excluding the
wholesale channel, gross margin increased by 240bps. The trial in
Q2 resulted in own site margin increasing by 570bps year on year in
the quarter, which has continued to improve over the first two
months of H2 FY24.
We would like to extend our thanks to our team, partners and
suppliers for their unwavering commitment and support of the
business.
Creating product that women want to wear
As a clothing brand our product is the key driver of our success
and keeps our customers returning to us for all their wardrobe
needs. We create head-to-toe outfits at a mid-level price point
that are high quality, long lasting, with a wide selection of
choice that covers all occasions and unique prints that are
designed in-house. Continuing to develop and invest in our product
range is vital to taking further market share.
We saw growth across all product ranges with particular success
in our summer occasion wear and beach and swim ranges over the
summer. In the lead up to Christmas we have seen extremely strong
sales across all categories with party wear, dresses, tailoring,
knitwear and smart trousers being standout items.
Our routes to market
As stated above, our product is what makes Sosandar unique. As a
clothing brand, without exceptional product the success we have
delivered to date would not have been possible. In order to ensure
that our customers can shop with Sosandar whichever way they wish,
we need multiple routes to market in order to take full advantage
of the GBP62bn UK clothing market. Working across our own site
Sosandar.com, our newly launched app, third party partners and our
own stores, it will become significantly easier for customers to
interact with our well-established brand.
1) Our own site
Sosandar.com remains the bedrock of the Sosandar hub. It is
where our customers access the complete Sosandar experience
including the full extent of our diverse range. This site is
continually updated with new product and content, and we are
constantly working and investing to ensure that we maintain a
seamless customer experience through this channel.
Over the past six months we have further invested in the
functionality of our own site in order to enable more customers to
buy from us, have more ways to shop and provide a more personalised
experience.
We launched our mobile app in July, and since then its
performance has performed very well, with c70,000 downloads to date
and 10% of sales already being generated through the app. We
recently launched with Global-e, the world's leading platform to
enable and accelerate global, direct-to-consumer, cross-border
ecommerce. This enables us to transact and fulfil orders worldwide
to over 60 countries in a cost-effective manner and allows us to
build knowledge to inform our future international strategy.
2) Sustained momentum with third party partners
Trading with our third-party partners including M&S and Next
has continued to be exceptionally strong. Across our partners we
sell at full RRP and we are very proud to continuously deliver
best-selling results across their plethora of third-party
brands.
Alongside our existing relationships, we were pleased to
announce our new third-party partnership with Freemans, part of the
Otto Group, on a wholesale agreement basis in September this year.
We are very pleased with the promising start to this
partnership.
Post period end, after spending a thorough amount of time
researching the opportunities, we were delighted to announce new
agreements with two large prestigious international third-party
partners: The Iconic in Australia and The Bay in Canada, exceeding
our previously stated target of launching with one such partner in
FY24. Since then, we are delighted to have already launched with
The Iconic and expect The Bay to launch in the latter part of H2
FY24. Third party partnerships, both domestically and
internationally, remain a key facet of our higher margin
multi-channel model and we have a strong pipeline of additional
opportunities at various stages of delivery.
3) Becoming a fully integrated multi-channel business
Over the course of the past two years, consumer behaviours are
changing and recent independent market reports* have validated our
assumption that shopping habits have also changed, with 61% of
consumers favouring in-store shopping, while 39% shop mostly
online. While consumer preferences for shopping online or instore
will of course oscillate, it is clear that the opportunity
available to multi-channel retailers far exceeds that of a strictly
online pureplay business and providing an instore offering is
therefore an essential next step in Sosandar's growth journey.
In order to fully capitalise on this increasing growth
opportunity, embracing a multi-channel strategy is key to
capitalise on the sustained growth in footfall over the last two
years**.
In the first two weeks of October, the Sainsbury's brand-new
fashion concept stores launched with a wide range of Sosandar
product selling well in all of the initial nine stores. This
partnership was the strategic starting point for the evolution from
pureplay to a multi-channel brand and will enable us to provide our
large but underserved demographic with more opportunities to
purchase our unique and diverse products.
By spring 2024, the Company expects to have opened its first
stores in the UK in affluent towns with thriving high streets where
Sosandar customers over-index. The same meticulous planning, risk
mitigation, in-depth research and successful execution that we have
continually demonstrated will also be applied to the controlled
store roll out. Our own stores will deliver multiple benefits both
to our total addressable market, profitability and to the brand as
a whole. It will bring increased brand awareness, higher margins,
more efficient marketing and overall lower returns rates as we take
our in-demand product to more customers. The foundation of the
anticipated success of this strategy is the same tried and tested
formula we've applied since foundation; providing our customers
with an exceptional product range that women want to buy and
seamless customer experience.
Our multi-channel model is tailored to meet consumer shopping
habits and allows to create a unified shopping experience for
customers.
* Retail Economics UK Multi-channel Retail Report 2023:
https://www.retaileconomics.co.uk/retail-insights/thought-leadership-reports/uk-multi-channel-retail-2023-report-online-in-store
**Store openings and closures H1 2023, PWC:
https://www.pwc.co.uk/industries/retail-consumer/insights/store-openings-and-closures.html
Current Trading and Outlook
Trading in the second half of the financial year to date has
been encouraging with November being a record month of trading. Net
revenue for October and November was GBP10.2m, a 16% increase
versus the prior year and a significant increase on the H1 FY23
exit rate of 6%. In addition, the effect of our planned reduction
in price promotional activity is starting to be seen with a 58.1%
gross margin being delivered on our own site in October and
November, in comparison to 54.1% in the prior year, which continues
to validate our planned multi-channel model.
This strong performance has been delivered across all our
channels. In early November we achieved a new record day of trading
on our own site. In addition, we also delivered new records through
our third parties in November. This performance and continued
demand shows the strength of our unique product range in the key
trading period before Christmas and, whilst acknowledging the
challenges that remain in the wider economy, we are trading in line
with market expectations for the full year.
We are excited about the next stage of our growth journey as we
provide our customers with more ways to engage and shop with
Sosandar through our website, app, third party partners and
eventually our own stores. At every stage of our journey so far we
have evaluated and considered the opportunities available to us in
detail, resulting in us executing to plan whilst also mitigating
risk. Our 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.
By spring 2024, we expect to have opened our first identified
stores in the UK. In addition, we will continue to drive sales
through our own site and app, further enhance our relationships
with third-party partners and continue to develop our international
strategy. All of these objectives will move us further towards
reaching our strategic goal of delivering GBP100m+ revenues and a
pre-tax profit margin of at least 10% in the medium term.
The Sosandar brand remains well placed to take advantage of the
multiple opportunities available to us, and we believe that the
future is very bright as we take the Sosandar brand to more
customers across the UK and worldwide and continue on our journey
to become one of the largest womenswear brands globally.
Financial review
KPIs
6 months ended 6 months ended Change
30 September 2023 30 September 2022
GBP'000 GBP'000
------------------ ------------------- ------------------- --------
Revenue 22,163 20,950 +6%
Gross Profit 12,289 11,388 +8%
Gross Margin 55.4% 54.4% +100bps
PBT (1,349) 77
------------------ ------------------- ------------------- --------
Own Site KPIs 6 months ended 6 months ended Change
30 September 2023 30 September 2022
------------------ ------------------- ------------------- --------
Sessions 7,713,554 7,770,346 -1%
Conversion rate 3.6% 4.5% -90bps
Number of orders 276,989 347,137 -20%
AOV GBP99.26 GBP89.71 +11%
Active customer
base 256,312 254,601 +1%
Revenue and loss before tax
H1 FY24 revenue increased by 6% to GBP22.2m with a loss before
tax of GBP1.3m (H1 FY23 GBP0.1m). The period saw a managed
reduction in price led promotional activity during Q2 which
impacted KPIs on our own site, most notably reductions in sessions
and conversion. This change was initially a trial which has
subsequently been extended into H2 FY24 and is resulting in
improved AOV and gross margin which will lead to mid-term
sustainable improvement in profitability.
Revenue through our third-party partners continues to grow
strongly, in particular with Next and Marks & Spencer. In
addition, the wholesale agreement with Sainsbury's commenced in the
period with Sosandar product being sold in nine physical stores
from early October.
Gross Margin
The gross margin in H1 FY24 is 55.4% which increased by 100bps
compared to the same period in the prior year. This improvement
includes the impact of an increase in the proportion of revenue
being generated through the wholesale channel. Excluding the
wholesale channel, gross margin increased by 240bps. The trial in
Q2 resulted in own site margin increasing by 570bps year on year in
the quarter.
Operating Costs
Total operating costs increased by 21% to GBP13.3m (H1 FY23
GBP11.0m). The largest element of this increase is from commissions
retained by our third-party partners which increased by 41% to
GBP3.4m (H1 FY23 GBP2.4m), reflecting the continued revenue growth
on our key partner sites. Excluding this increase, all other
overheads increased by 15% from GBP8.6m to GBP9.9m. This includes
the strengthening of the Sosandar team during the second half of
FY23 to support the growth of the business across all sales
channels and an increase in activity driven fulfilment costs.
Balance Sheet
Net assets increased to GBP17.2m at 30 September 2023 compared
with GBP10.6m at 30 September 2022. Cash at 30 September 2023 was
GBP7.0m (30 September 2022: GBP4.2m).
The cash balance was strengthened following the GBP5.4m equity
raise in Feb 2023. The funds have been invested in greater levels
of inventory in order to drive further growth, in particular with
our third-party partners including the new wholesale agreement with
Sainsbury's. Our plan to open our own physical retail stores will
be delivered from our existing financial resources.
Inventory increased to GBP14.2m (H1 FY23: GBP13.5m) which
reflects the planned investment in stock to drive further growth.
We have slightly more summer stock to carry over into next year
following the managed reduction in orders through our own site in
Q2. This is good stock and will complement new ranges which will be
purchased in early FY25.
Receivables increased to GBP3.8m (H1 FY23: GBP2.3m) due to the
increase in revenue from third party partners including the new
partnership with Sainsburys. There has been no change to payment
terms with any of our
partners. All partners have continued to pay in full and on time throughout the period.
Payables decreased to GBP9.2m (H1 FY23 GBP10.0m) reflecting the
timing of payments relating to the Autumn / Winter season compared
to H1 2023. We consciously brought stock in earlier than last year
in order to ensure our new season ranges launch on time, in
particular with our third party partners which results in payments
being slightly earlier. We have continued to increase the use of
varied freight methods to balance lead time, cost and environmental
considerations which is also leading to improved margins, in
particular as freight rates have reduced year on year.
Non-current assets increased by GBP0.6m to GBP2.0m. Investment
in the development and launch of the Sosandar app and ongoing costs
for the ERP project result in intangibles being GBP0.4m (H1 FY23:
GBPnil).
UNAUDITED CONSOLIDATED STATEMENT OF INCOME AND OTHER
COMPREHENSIVE INCOME
FOR THE 6 MONTHSED 30 SEPTEMBER
2023
6 Months 6 Months Year ended
to 30 Sept to 30 Sept 31 March
2023 2022 2023
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------ ------------ -----------
Revenue 22,163 20,950 42,451
Cost of Sales (9,874) (9,562) (18,614)
------------------------------- ------ ------------ ------------ -----------
Gross profit/(loss) 12,289 11,388 23,837
Other operating income - - -
Administrative expenses (13,342) (11,027) (21,654)
Share-based payment (137) (156) (311)
Depreciation and amortisation (141) (107) (235)
------------------------------- ------ ------------ ------------ -----------
Operating profit/(loss) (1,331) 98 1,637
Finance costs (18) (21) (40)
Profit/(loss) before
taxation (1,349) 77 1,597
Income tax credit/(expense) - - 284
------------------------------- ------ ------------ ------------ -----------
Group profit/(loss)
for the year (1,349) 77 1,881
Other comprehensive - - -
income
Total comprehensive
profit/(loss) for
the period (1,349) 77 1,881
------------------------------- ------
Earnings/(loss) per
share:
Earnings/(loss) per
share - basic and
diluted, attributable
to ordinary equity
holders of the parent
(pence) 5 (0.60) 0.03 0.84
------------------------------- ------ ------------ ------------ -----------
UNAUDITED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE
INCOME
FOR THE 6 MONTHSED 30 SEPTEMBER
2022
6 Months 6 Months Year ended
to 30 Sept to 30 Sept 31 March
2022 2021 2022
Notes GBP'000 GBP'000 GBP'000
---------------------------------------- ------ ------------ ------------ -----------
Revenue 20,950 12,177 29,458
Cost of Sales (9,562) (5,297) (12,962)
---------------------------------------- ------ ------------ ------------ -----------
Gross profit/(loss) 11,388 6,880 16,496
Other operating income - - -
Administrative expenses (11,027) (7,770) (16,470)
Share-based payment (156) (101) (255)
Depreciation and amortisation (107) (85) (317)
---------------------------------------- ------ ------------ ------------ -----------
Operating profit/(loss) 98 (1,076) (546)
Finance costs (21) (1) (8)
Profit/(loss) before taxation 77 (1,077) (554)
Income tax credit/(expense) - - 412
---------------------------------------- ------ ------------ ------------ -----------
Group profit/(loss) for the year 77 (1,077) (142)
Other comprehensive income - - -
Total comprehensive profit/(loss)
for the period 77 (1,077) (142)
---------------------------------------- ------
Earnings/(loss) per share:
Earnings/(loss) per share - basic
and diluted, attributable to ordinary
equity holders of the parent (pence) 5 0.03 (0.51) (0.07)
---------------------------------------- ------ ------------ ------------ -----------
UNAUDITED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
As at As at As at
30 Sept 30 Sept 31 March
2023 2022 2023
Notes GBP'000 GBP'000 GBP'000
------------------------------------ ------ -------------- ------------ --------------
Assets
Non-current assets
Intangible assets 367 - 52
Property, plant, equipment 339 297 355
Right of Use asset 592 658 584
Deferred income tax asset 696 412 696
Total non-current assets 1,994 1,366 1,687
------------------------------------ ------ -------------- ------------ --------------
Current assets
Inventories 14,216 13,489 12,361
Trade and other receivables 3,798 2,347 2,730
Cash and cash equivalents 6,981 4,205 10,576
Total current assets 24,996 20,041 25,667
------------------------------------ ------ -------------- ------------ --------------
Total assets 26,989 21,407 27,354
------------------------------------ ------ -------------- ------------ --------------
Equity and liabilities
Equity
Share capital 4 248 221 248
Share premium 4 52,619 47,089 52,619
Capital Reserves 4,648 4,648 4,648
Other reserves 1,360 1,068 1,223
Reverse acquisition reserve (19,596) (19,596) (19,596)
Retained earnings (22,126) (22,577) (20,773)
------------------------------------ ------ -------------- ------------ --------------
Total equity 17,157 10,853 10,620
------------------------------------ ------ -------------- ------------ --------------
Current liabilities
Trade and other payables 9,198 9,899 8,355
Lease liability 111 116 148
------------------------------------ ------ -------------- ------------ --------------
Total current liabilities 9,309 10,015 8,503
------------------------------------ ------ -------------- ------------ --------------
Non current liabilities
Lease liability 523 539 482
--------------
Total non current liabilities 523 539 482
------------------------------------ ------ -------------- ------------ --------------
Total liabilities 9,832 10,554 8,985
------------------------------------ ------ -------------- ------------ --------------
Total equity and liabilities 26,989 21,407 27,354
------------------------------------ ------ -------------- ------------ --------------
UNAUDITED CONSOLIDATED STATEMENT
OF CASHFLOWS
FOR THE 6 MONTH PERIODED 30
SEPTEMBER 2023
6 Months 6 Months Year ended
to 30 to 30 31 March
Sept Sept
2023 2022 2023
Notes GBP'000 GBP'000 GBP'000
-------------------------------------------- ------ ------------- ------------- -------------
Cash flows from operating activities
Group profit/(loss) before tax (1,349) 77 1,597
Share based payments 137 156 311
Depreciation and amortisation 141 107 235
Finance costs 18 21 40
Working capital adjustments:
Change in inventories (1,855) (6,182) (5,054)
Change in trade and other receivables (1,068) 148 (235)
Change in trade and other payables 843 3,138 1,595
Net cash flow from operating activities (3,133) (2,535) (1,511)
-------------------------------------------- ------ ------------- ------------- -------------
Cash flow from investing activities
Addition of property, plant and
equipment (30) (235) (348)
Addition of intangibles (324) - (52)
Initial direct costs on right of
use asset - - -
Interest paid - (18) -
Net cash flow from investing activities (354) (253) (400)
-------------------------------------------- ------ ------------- ------------- -------------
Cash flow from financing activities
Net proceeds from issue of equity
instruments 4 - - 5,557
Lease payment (107) (55) (117)
-------------------------------------------- ------ ------------- ------------- -------------
Net cash flow from financing activities (107) (55) 5,440
-------------------------------------------- ------ ------------- ------------- -------------
Net change in cash and cash equivalents (3,596) (2,843) 3,529
Cash and cash equivalents at beginning
of period 10,577 7,048 7,048
-------------------------------------------- ------ ------------- ------------- -------------
Cash and cash equivalents at end
of period 6,981 4,205 10,577
-------------------------------------------- ------ ------------- ------------- -------------
UNAUDITED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIODED
30 SEPTEMBER 2023
Share Share Reverse Capital Retained Other Total
capital premium acquisition redemption earnings reserves
reserve reserve
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ------ --------- --------- ------------- ------------ ---------- ---------- --------
Balance
at 30 September
2022 221 47,089 (19,596) 4,648 (22,577) 1,068 10,853
------------------ ------ --------- --------- ------------- ------------ ---------- ---------- --------
Profit (Loss)
for the
period - - - - 1,804 - 1,804
Share-based
payments - - - - - 155 155
Issue of
share capital 4 27 5,873 - - - - 5,900
Costs on
issue of
share capital 4 (343) - - - - - -
Balance
at 31 March
2023 248 52,619 (19,596) 4,648 (20,773) 1,223 18,369
------------------ ------ --------- --------- ------------- ------------ ---------- ---------- --------
Profit (Loss)
for the
period - - - - (1,349) - (1,349)
Share-based
payments - - - - - 137 137
Issue of - - - - - - -
share capital 4
Costs on - - - - - - -
issue of
share capital 4
Balance
at 30 September
2023 248 52,619 (19,596) 4,648 (22,122) 1,360 17,157
------------------ ------ --------- --------- ------------- ------------ ---------- ---------- --------
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.
Share based payments reserve relate to the charge for
share-based payments in accordance with International Financial
Reporting Standard 2.
Retained earnings represent the cumulative loss of the Group
attributable to equity shareholders.
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. The reserve is non-distributable.
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
1. General Information
Sosandar Plc is a company incorporated and domiciled in England
and Wales. The Company's offices are in Wilmslow. The Company is
listed on the AIM market of the London Stock Exchange (ticker:
SOS).
The financial information set out in this Half Yearly report
does not constitute statutory accounts as defined in Section 434 of
the Companies Act 2006. The Company's statutory financial
statements for the year ended 31 March 2023, prepared under
International Financial Reporting Standards ("IFRS"), have been
filed with the Registrar of Companies. The auditor's report on
those financial statements was unqualified and did not contain
statements under Sections 498(2) and 498 (3) of the Companies Act
2006.
Copies of the annual statutory accounts and the Half Yearly
report can be found on the Company's website at
http://www.sosandar-ir.com/content/investors/annual-reports.asp
.
2. Basis of preparation and significant accounting policies
This Half Yearly report has been prepared using the historical
cost convention, on a going concern basis and in accordance with
IFRS as adopted by the European Union, using accounting policies
which are consistent with those set out in the financial statements
for the year ended 31 March 2023.
3. Segmental reporting
In the opinion of the directors, the Company has one class of
business, being that of a clothing brand with distribution across
multiple channels including online and physical stores. The Group's
primary reporting format is determined by the geographical segment
according to the location of its establishments. There is currently
only one geographic reporting segment, which is the UK. All costs
are derived from the single segment.
4. Share capital and reserves
Details of ordinary shares issued are in the table below:
Ordinary Shares (GBP0.01)
----------------------------------------------------------------------------------------------------
Date Number Issue Total Share Total
of shares Price Capital GBP'000 Share Premium
GBP GBP'000
------------------------------ ------------ ------- ---------------------------- ---------------
At 31 Mar 2022 221,408,332 0.001 221 47,089
------------------------------ ------------ ------- ---------------------------- ---------------
Shares issued: Fundraise Feb
23 26,818,181 0.001 27 5,873
Direct costs: Fundraise May
21 - (343)
------------------------------ ------------ ------- ---------------
At 31 Mar 2023 248,226,513 0.001 248 52,619
------------------------------ ------------ ------- ---------------------------- ---------------
Shares issued: - - -
At 30 September 2023 248,226,513 0.001 248 52,619
------------------------------ ------------ ------- ---------------------------- ---------------
Ordinary Shares (GBP0.01)
--------------------------------------------------------------------------------------------------------
Date Number Issue Total Share Total
of shares Price Capital GBP'000 Share Premium
GBP GBP'000
----------------------------------- ------------ ------- --------------------------- ---------------
At 31 Mar 2021 192,268,122 0.001 192 41,592
----------------------------------- ------------ ------- --------------------------- ---------------
Shares issued: Fundraise May
21 28,840,210 0.001 29 5,739
Shares issued: Warrants exercised
Dec 21 300,000 0.001 - 45
Direct costs: Fundraise May
21 - (287)
----------------------------------- ------------ ------- ---------------
At 31 Mar 2022 221,408,332 0.001 221 47,089
----------------------------------- ------------ ------- --------------------------- ---------------
Shares issued: - - -
At 30 September 2022 221,408,332 0.001 221 47,089
----------------------------------- ------------ ------- --------------------------- ---------------
5. Earnings per share: profit / (loss)
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
6 Months 6 Months
to 30 to 30 Year ended
Sept Sept 31 March
2023 2022 2023
(Loss)/ Profit after tax attributable
to equity holders of the parent (GBP'000) 77 77 1,881
Weighted average number of ordinary
shares in issue 224,738,344 221,408,332 224,738,344
Fully diluted average number of ordinary
shares in issue 224,738,344 221,408,332 224,738,344
-------------------------------------------- ------------ ------------ ------------
Basic and diluted earnings profit /
(loss) per share (pence) (0.60) 0.03 0.84
-------------------------------------------- ------------ ------------ ------------
6. Post balance sheet events
The Company had no post balance sheet events.
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END
IR TBBJTMTJBTTJ
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