Full Year Results

A year of strong revenue growth, substantial reduction in EBITDA losses and a strong start to the new financial year with Q1 FY22 revenue up 256% YoY.

Sosandar PLC (AIM: SOS), the online women’s fashion brand, is pleased to announce its financial results for the year ended 31 March 2021 and an update on trading for Q1 of the current financial year.

FY2021 Financial Highlights

• Revenue growth of 35% to £12.2m (FY2020: £9.03m), representing a strong performance in a volatile trading environment
• Stable gross margin of 48.0% (FY2020: 48.5%), despite the effective use of promotional activity during lockdown periods
• Narrowed EBITDA loss to £2.92m (FY2020: £7.66m) as a result of increasing scale, improved ROI on marketing and ongoing focus on cost management
• Year-end cash of £3.93m (FY2020: £5.33m) with low cash burn since July 2020 (£4.40m)

 FY2021 Operational Highlights

• Diversification and continued expansion of product range, offering customers a broader choice of product for all occasions:

• 60% increase in new styles
• New categories of loungewear, active and leisure wear launched, now becoming a key part of the product range
  • Successful expansion of casual and smart-casual clothing ranges with denim, knitwear and outerwear performing particularly well
  • Successful launch with John Lewis, Next and Marks & Spencer
  • Engaged and loyal customer base:
    • 40% increase in repeat orders to 189,703 (FY2020: 135,983)
    • Average order frequency improved by 23% to 2.08 (FY2020: 1.69)
  • Strong conversion rate of 3.09% (FY2020: 2.67%) driven by the expanded range which is resonating well with customers
  • Average order value (AOV) of £82.70 (FY2020: £97.14) due to the changes in the product mix with higher sales of lower value items such as loungewear, knitwear and activewear

Post-period Highlights:

• Q1 2022 was a record quarter for revenue with each month improving sequentially:
  • Revenue of £5.7m up 256% against Q1 FY21 (lockdown period last year)
  • Q1 increased 45% against Q4 driven by very strong sales of spring summer product from early in the season
• Number of orders tripled year on year with a record quarter for both new and repeat orders with cost of acquisition less than half of pre pandemic levels
  • Versus Q4 FY21, both new and repeat orders increased by 40%
• Active customers increased by 23% on Q4 FY21
• Increase in sales across all key categories with both casual and going out styles selling very quickly.  Stand out winners have been dresses, tops, knitwear and denim
• Further expansion of the product range with Marks & Spencer, John Lewis and Next to support strong sales in all categories
• Successful fundraise of £5.43m (after expenses) completed May 2021, substantially oversubscribed and with support shown from both institutions and retail investors:
  • Proceeds provide the balance sheet flexibility to capitalise on opportunities available, specifically the significant potential to accelerate growth with third party retailers
  • Cash of £9.10m as at 30 June 2021
• Appointment of Steve Dilks to the Company’s Board as Chief Financial Officer in May 2021

FY2021 KPIs