Full Year Results and Trading Update

Robust FY24 performance with continued focus on margin, profitability and cash generation. First two store leases signed

Sosandar PLC (AIM: SOS), one of the fastest growing fashion brands in theUK, creating quality,ctrend-led products for women of all ages, is pleased to announce its financial results for the yearcended 31 March 2024.

As the Company transitioned to becoming a true multi-channel retailer, through the planned opening of its own stores, the second half of FY24 saw the prioritisation of margin enhancement and profitability, the result of which can be seen in the FY24 margin uptick and upswing in pretax profit in H2 FY24.

FY24 Financial Highlights

• Net revenue growth of 9.0% to £46.3m (FY23: £42.5m)
• Improved gross margin of 57.6% (FY23: 56.2%) (H2 FY24: 59.6%)
• Loss of £0.3m for FY24 following an upswing in PBT in H2 to £1.0m (H1 loss of £1.3m)
• Strong cash generation in H2, resulting in an improved net cash position of £8.3m as at 31 March 2024 (£7.7m as at 31 December 2023)

Post-period Trading (Q1 FY25)

• Continued focus on prioritising margin enhancement and profitability
• 80% reduction in price promotional activity on Sosandar.com vs the same quarter last year
• 670bps improvement in gross margin to 63.4% (Q1 FY24: 56.7%)
• Substantial positive swing from (£0.8m) pre-tax loss in Q1 FY24 to (£0.2m) pre-tax loss in Q1 FY25
• Net revenue of £8.2m (Q1 FY24: £11.4m) reflecting prioritisation of increasing gross margins to improve profitability
• Balance sheet remains robust with cash position remaining flat at £8.3m as at 30 June 2024 vs. 31 March 2024, allowing us to self-fund the planned store roll out

Our Q1 FY25 results at the gross margin and pre-tax profit level have been highly encouraging and reflect our prioritisation of margins with reduced discounting ahead of planned store launches. As such, whilst it is early in the year to predict a full year outturn, we have taken the decision not to drive revenue growth at the detriment of margins in FY25. The 670bps increase in gross margin to 63.4% means pre-tax profit levels are expected to remain in-line with expectations, despite lower revenues, which are now likely to be in-line with the prior year.

Looking further ahead, we expect that our enhanced brand presence and sales mix will, once again, deliver revenue growth in the years ahead, driven by growth through our own website, the rollout of stores and the compounding positive effect that the shops will have across all of our channels.